• Monday, 01 July 2024

Nikolovski: New subsidizing model for improved effects in agriculture production

Nikolovski: New subsidizing model for improved effects in agriculture production
Skopje, 12 September 2022 (MIA) – Minister of Agriculture, Forestry and Water Economy Ljupcho Nikolovski said a new subsidizing model would be introduced as of 1 January 2023 because the existing one does not provide the desired effects and is prone to manipulation and abuse. The new model would first be presented before the agri-council, alongside a public debate on the changes, for the purpose of developing a good and applicable subsidizing model that would better manage citizens’ funds and produce improved effects in food production, especially in a time of crisis. The objective is to increase the subsidy support for those crops and products in market demand. “The existing subsidies for farmers will not be cut but rather distributed in various programmes. The new model should ensure faster payment so that farmers have their funds in time to start new production. The goal is to ensure increased control in the use of the funds,” said Nikolovski. The model proposes demarcation of production non-related and related payments, meaning that regardless of the crop, farmers receive the basic direct payments for the area they cultivate, regardless of the produced quantities. “The second objective is to eliminate informal economy by not getting additional subsidies for production that is to be sold on the black market, to non-registered traders or processors,” said Nikolovski. Regarding cattle breeding, payment will be made per head, per basic herd, and through increased amount of the support. The model will also reduce possibilities for abuse because the Payment Agency will conduct more controls. “We are continuing the use of the Intervention Fund, where we propose that all payments are made by quantity, thus ensuring facilitated administrative procedures, more frequent and swift payments but also an opportunity to supplement the programme depending on the needs,” said Nikolovski. It is also proposed that the Rural Development Programme turns into an Investment Programme, with the new model overlapping with the new seven-year IPARD period, whereas the IPARD budget is increased by 62 percent. Nikolovski also announced a new measure – hiring advisory services that will help farmers to follow all calls and apply in time. The reorganized subsidizing model is also dependent on the current global crisis and the war, whereas the main focus is to ensure enough food for all citizens.