Starting with 2020, the authorities propose to provide money for every hectare of worked land and raised animal. For this will be created a national fund for the development of agriculture and rural environment. It will consist of annual transfers from the state budget, but also from European money. Thus, the size of subsidies received by farmers will not exceed 50 percent of the investment costs.
According to the law, the subventions will be given for a period of five years. Starting with 2017, annual allocations from the state budget to the National Fund for Agriculture and Rural Development will not be less than 4 percent of revenues.
The government will provide facilities for certain categories of farmers, in order to develop small bussines and ecological food production. Thus, young people and women starting businesses in agriculture will receive subsidies with the value of at least 15 percent of the amount they invested. The same amount will receive the farmers who work the land in areas capricious in terms of climate. The highest value of subsidies, 20 percent of the amount invested, will receive the farmers who grow organic fruits and vegetables or livestock with organic products. On the other hand, the lowest subsidy, 10 percent will receive technical farmers who use domestic production.
For the first time, the authorities will provide money in advance to people who have decided to open a business in agriculture. They will be able to receive subsidies of up to 50 percent of the amount of investments, if the project did not receive any grant and if the farmer does not have a business partner. Also, the beneficiary must ensure the project finality.
By adopting the new regulation on subventions, the authorities want to improve the situation in the food industry and to raise living standards in rural areas.