Romanian Farmers’ Club appreciates open dialogue with the Ministry of Agriculture and Rural Development

The Romanian Farmers’ Club appreciates the open dialogue of the Romanian Government and the Ministry of Agriculture and Rural Development with both the protesters, farmers from all regions of the country, and professional associations.

The Club has participated in multiple discussions with Ministry representatives, in the context of these protests and not only, to identify and establish measures that the Ministry can adopt, namely the contribution of other relevant ministries in supporting entrepreneurs in the agricultural sector, as well as the framework through which European regulations can accept the transposition of proposals coming from Romanian farmers.

The Romanian Farmers’ Club has been and remains in solidarity with the farmers’ actions of the last period, welcoming the action plan undertaken by the Ministry of Agriculture and Rural Development, which is to be implemented according to the timetable agreed by all parties. We await and follow the implementation of this plan aimed at saving Romanian farms, in a very delicate regional context, which has led to the bankruptcy and insolvency of many agricultural companies.

“The Farmers’ Club supports the negotiation and adoption by the Government of a Plan of Measures in response to the financial crisis faced by Romanian farmers. The years of drought, the economic crisis, the complex effects of the war in Ukraine, the disruption of the European common market by the derogations granted to Ukrainian agricultural goods have brought Romanian farmers to a critical point, from which many will disappear if this strategic sector is not treated strategically by the Romanian Government. This plan must be the result of negotiations that record the Government’s commitments in the short and medium term because this crisis facing farmers has accumulated over time and can only be resolved with a politically, diplomatically, financially and economically committed plan. Romanian farmers now need a rescue plan and financial stability, with Government intervention” said Florian Ciolacu, Executive Director of the Romanian Farmers’ Club.

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The Club initiated a plan of measures at the beginning of the dialogue and expresses its satisfaction that most of the points have been included in the agreement signed on the 15^th of January, with the remainder to be examined in partnership with relevant institutions:

1. Granting of APIA subsidies for the year 2023 until the end of February 2024, including financial compensation linked to other direct payment schemes.
2. Compensation for losses caused by the major disruption of the cereals market, by import of cereal (which does not meet EU standards and may endanger food security) and transit of Ukrainian cereals and oilseeds: minimum 60 EURO/tonne.
3. Offer subsidies related to losses caused by the volatility of cereal and oilseed prices in the agricultural year 2023 – 3 EURO/tonne stored/month, for the period September 2023-February 2024.
4. Support to affected farmers for losses due to drought on crops planted in autumn 2022, based on the Ukraine temporary framework, amounting to 100 EURO/hectare. To provide loss-related subsidies also for crops in spring 2023.
5. Protecting the internal market by carrying out systematic checks to verify customs arrangements and compliance with EU requirements and ensuring fair competition in the European common market (including countries in the process of joining the EU).
6. Support in credit on preferential terms – advantageous credit lines with government guarantees – (Agrol Credit and Farmer’s Credit);
7. Establishment of a micro-credit scheme for easy and quick access ; Continuation of AGRO IMM INVEST and RURAL INVEST programs (increase of warranty caps and the annual state aid cap with FGCR guarantee and expansion of the credit base for farmers with B and C credit risk).
8. Compensation of 50% of energy costs used for irrigation in 2023 and full budgeting of partial payments for 2024 (currently made by ANIF within funds).
9. Equating driver’s license category B with TR and category B1 with TR1.
10. Adoption of decisions, at national and European level, on derogation from the application of GAEC 7 and 8 for the current year.
11. Revision of the tax legislation on taxation of companies with a turnover of more than EUR 50 million and banking institutions – impact on the final retail price
12. Providing tax benefits: suspension of rates for agricultural businesses affected by drought.
13. The assumption by the Romanian Government of the strategic project on capacity expansion and adaptation of logistic processes related to the Port of Constanta (aiming at reducing waiting time in customs to a maximum of 3 hours).
14. Implementation of state aid related to Law No. 170/2023 for agricultural producers of vegetables, fruits and potatoes, implementation of a National Strategic Potato Plan (proposed by MADR from 2021).
15. Extension of working hours for transport truck drivers in harvesting campaigns.
16. Budget and implement the scheme to reduce excise duty on diesel used in agriculture and subsidize the purchase of vignettes.