Subventions for young farmers
The long-awaited DR-12 intervention, a super exciting addition from the National Strategic Plan 2023-2027, is finally making its debut this year! That’s right, young farmers who are already doing their thing can score a generous 200,000 euros per farm in funding, with a whopping 80% intensity.
At the last meeting, the Minister of Agriculture talked with representatives of the Save the Romanian Peasant Union about launching the DR-12 funding line in November this year. The total budget for this subvention for young farmers will be 169,589,647 euros.
To get this subvention, young farmers must have finished the installation project (submeasure 6.1 of the 2014-2020 PNDR), meaning they have implemented the business plan and received the second installment of money.
Farmers over 45 years old, who have recently started, meaning they have been farm heads for no more than 5 years, can also get this financing. However, in their case, the support intensity will be only 65%.
Budget Details
The budget for this subvention for young farmers – DR12 investment strategy is 169,589,647.00 euros, allocated substantially. Each project under this initiative can receive up to 200,000 euros, with an average funding of 180,000 euros per project.
In 2023, they allocated 0, and in 2024, the same. However, they will allocate 67,835,859.00 euros in 2025 (378 beneficiaries) and 101,753,788.00 euros in 2026 (566 beneficiaries).
Description of the Subvention for young farmers
This support is for young farmers who have set up their farms through PNDR 2014-2020, including the transition period, as well as those who have recently started (in the last 5 years from the time of applying for financing). The aim is to help them strengthen their farms and improve their management to make the farms more sustainable. As part of this support, we will assist with investments to enhance primary agricultural production.
On the farm, we’ll also take care of processing, as a kind of bonus to the main project. By having facilities for conditioning and storage, farmers can keep their agricultural products in top-notch shape and get a better spot in the supply chain.
This intervention helps young farmers access capital, strengthen their farms, and renew agricultural generations, reducing youth migration to cities or abroad. Supporting young farmers ensures their farms’ structural balance and competitiveness.
Eligible beneficiaries of funds for young farmers
- Young farmers who have completed the implementation of the business plan under submeasure 6.1 of the 2014-2020 PNDR, including transition;
- Farmers who have settled no more than 5 years before submitting the application for support for this intervention, who are up to 45 years old at the time of submitting the funding application and are heads of the farm.
- !!!Natural persons are not eligible.
The most important eligible investments of this subvention for farmers
Are eligible investments physical investments related to:
• Construction of new or modernized facilities for agricultural activities, including protected spaces for crops, along with the necessary equipment and utilities. This also encompasses conditioning and storage facilities for the farm’s agricultural products, designed to match the farm’s production capacity.
• Investing in establishing and upgrading fruit farms, as well as converting fruit plantations.
• Establishing, expanding, or modernizing conditioning and storage units.
Expansion and/or modernization of processing units at the farm level, including related equipment, only as a secondary component of the project (from a financial point of view);
Purchasing or leasing agricultural machinery, specialized trailers, and high-performance equipment for managing fertilizers and plant protection products, including those used for obtaining the fodder base.
Expanding farm marketing with a farm shop and food trailers to sell our own fresh products, although it’s a secondary endeavor.
Establishment/modernization of farm facilities to ensure hygiene and biosecurity is a secondary component.
New machinery and equipment for the production and/or distribution of fodder as feed for farm animals;
• digital solutions for the practice of precision agriculture;
• improving or building access roads and connections within the farm, along with utilities, is only a secondary part of the project.
• irrigation equipment but as a secondary component.
Also, renewable electricity or heat, such as solar, wind, or geothermal power, solely for your own use, without selling it back to the grid.
Investments that contribute to the reduction of GHG emissions (secondary component of the project), related to:
- making buildings more energy efficient when eligible work is done there;
- and, the purchase of equipment/machinery with low energy consumption, as well as other investments that contribute to the reduction of GHG emissions;
Also, investments in the circular economy such as:
a) the production and use of renewable energy from the utilization of biomass;
b) obtaining organic fertilizers from the utilization of biomass
On subvention for farmers are eligibile also, investments in intangible assets for:
1.Organization and implementation of quality management and food safety systems, if they are related to physical investments of the project;
2. Acquisition of technologies (know‐how), patents and licenses for the preparation of project implementation;
3. The purchase of software, identified as necessary in the technical-economic documentation of the project;
4. Marketing of the obtained products, etc.
Conclusion
The DR12 strategy, focusing on sub-measure 6.1, has boosted agricultural holdings, increasing income and quality of life for young farmers. Subsidies, this subvention for farmers will help improve productivity, adopt new technologies, and implement eco-friendly practices.
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