Drought-hit farmers reject Moldova's new support plan
The government is preparing a decree to institute a financial support mechanism for farmers who suffered losses from late frosts this spring.
The deadline for the VAT refund program for agricultural producers has also been extended until June 2026, and authorities are accelerating the modernization of irrigation infrastructure. However, farmers in southern Moldova believe that the solutions proposed by the government do not address the problems they are facing.
The government's solutions were presented on Thursday, July 31, by Ludmila Catlabuga, the Minister of Agriculture and Food Industry, during her discussions with farmers from the Ștefan Vodă and Căușeni districts. These farmers had recently asked the government to declare a state of emergency in agriculture due to the consequences of a severe drought, which has been affecting the region for the fourth consecutive year.
"The subsidy fund disadvantages us"
Farmers believe the measures announced by the government do not benefit agricultural producers in southern Moldova, and that any subsidies allocated will be "a drop in our ocean of problems."
During the discussions with the MAIA leadership, Sergiu Ștefanco emphasized that the eligibility criteria for the 2024 state aid, particularly the 70% damage threshold, excluded many farms in the Căușeni and Ștefan Vodă districts, with very few farmers applying for the aid.
"The subsidy fund is based on post-investment—you only get money if you've already invested. We won't be eligible because we don't have money. We, from the southern region, will never be able to compete with those from the central and northern regions. Our harvests are small. But what do we have to invest in?" Ștefanco asked.
He added that the drought in the Ștefan Vodă and Căușeni districts has been an issue for years, and that Parliament has failed to develop, over four years, mechanisms to help them cope with these hardships.
Ludmila Catlabuga told the farmers that the Ministries of Agriculture and Finance are currently analyzing the possibility of "intervening on a case-by-case basis" to support farmers facing losses, financial difficulties, or accumulated penalties.
She reminded them that the deadline for the VAT refund program for agricultural producers had been extended until June 2026. Taxpayers who conduct at least 70% of their activity in the agricultural sector are eligible, and farmers can also benefit from financial and fiscal facilities under the Law on Support Measures for Farmers Affected by the 2024 Drought, which is in force.
Irrigation: the "weapon" against drought
Affected farmers can also benefit from an extension of the payment deadline for installments on sales contracts with ADMA, by presenting supporting documents that certify their inability to meet their financial obligations. In the first six months of 2025, ADMA has already extended the payment deadline for over 20 million lei in installments, the minister stated.
However, the definitive solution to combating the effects of the drought is the rehabilitation of irrigation systems. The minister mentioned that rehabilitation work for irrigation infrastructure is well underway in Căplani and Tudora. A feasibility study is also in progress for the rehabilitation of the “Masivul Căușeni,” “Gotești,” and “Puhăceni” irrigation systems, supported by the European Bank for Reconstruction and Development.
"In the long term, the priority objective of the Ministry of Agriculture and Food Industry (MAIA) is the systemic modernization of the irrigation sector. The increasingly pronounced climate changes are forcing us to rethink how we ensure access to water for irrigation," Minister Catlabuga pointed out.
It is worth noting that local authorities from the Ștefan Vodă and Căușeni districts had previously asked the government to declare a state of emergency in agriculture and to designate their area as a disadvantaged agro-climatic zone. In letters sent to the central authorities, they cited the consequences of the severe drought on agriculture, which for the fourth consecutive year caused most farmers in the area to record losses of 80-90% for their corn and sunflower crops. Additionally, the rapeseed and wheat harvest in the two districts was compromised by spring frosts.
Translation by Iurie Tataru
