MECHANISMS OF ECONOMIC AND FINANCIAL SUPPORT FOR THE AGRICULTURE OF BOTOŞANI DISTRICT

Transcription

1 Bulletin UASVM, Horticulture 65(2)/2008 pissn ; eissn MECHANISMS OF ECONOMIC AND FINANCIAL SUPPORT FOR THE AGRICULTURE OF BOTOŞANI DISTRICT Aurel CHIRAN 1, Elena GINDU 1, C. BIZU 2, V. ARCHIP 1 1 Universitatea de ŞtiinŃe Agricole şi Medicină Veterinară Ion Ionescu de la Brad Iaşi, Aleea 3 M. Sadoveanu Street, cod , achiran@univagro-iasi.ro, Fax : ; 2 A. P. I. A., Botoşani Keywords: agriculture, mechanisms, payments, financial support Abstract: The assurance of alimentary security in Romania requests the allowance of necessary funds for the revitalizing of the agriculture, which that represents the main source of securing of the food needs of the native population. As member of the European Union, Romania should draw the assigned funds to the development of certain agricultural sectors, out of which the animal husbandry occupies a priority place. Within this context, M.A.P.D.R. has promulgated the Minister's Order number 850/2006, for granting the financial support to the farmers from the field of animal husbandry. The Order stipulates the allowance of some funds as direct financial support, under the following terms: 0.3 lei/l for the milk delivered to authorized factories; 1.6 lei /Kg for the broiler chicken having production permit issued by the Sanitary Veterinary Direction (D.S.V.) and which are slaughtered in slaughter houses authorized by D.S.V.; 100 lei/bovine, on condition that the farmer owns at least three adult bovines; 100 lei /pork carcass of E class, on condition that the farmer has a permit issued by D.S.V. and the animals are slaughtered in slaughterhouses authorized by D.S.V.; 120 lei /pork carcass of U class, under the same condition as mentioned in the previous line. In accordance with the provisions of the Minister's Order number 850/2006, the support granted to the 3348 applications approved in the year 2007 in the field of animal husbandry in Botoşani district, was 8.79 thousand millions lei out of which: 52.7 % for milk, in accordance with the standards in force; 45.8 % for farms of broiler chicken breeding; 1.3 % for bee-keeping; 0.1 % for adult bovines; 0.12 % for classified pork carcasses. Finally, the authors recommend some measures to stimulate the agricultural producers to apply for structural funds. INTODUCTION In Romania, since 2000 has been elaborating "The National Plan for Agriculture and Rural Development ", aimed for the recovery and revival of agriculture (Alecu I. et all., 1997). In this approach, have been developed more programs and project budget: Phare Programme, Rural Development Project (PDR) financed by the World Bank with the progress during , which received a loan of $ 40 million. Also, it had been developed several public policy documents such as the National Plan for Agricultural and Rural Development (PNADR) - as a multi-operational program for the period , under which was implemented in Romania SAPARD Program (total funds for Romania allocated for agriculture and rural development through the SAPARD program, were 1.52 billion euros); Fermierul program regarding the stimulating 83

2 of investments in agriculture; National Strategic Plan for Rural Development (PNS) (Bucătaru D., 1997; Ciurea I.V. et all., 2000; Dobai Krisztina-Melinda, 2003, Macovei Gh., 2002). The National Strategic Program is focused on three key issues namely: facilitate the transformation and modernization of the dual structure of agriculture and forestry and also the processing industries; maintaining and improvement the quality of the rural areas environment; management and facilitate the transition work force in the agricultural sector to other sectors. Also, the strategy establishes the axes for the development of the agricultural sector, the forest and rural development: Axe 1 - Increase the competitiveness of agriculture and forestry sectors Axe 2 - Improving the environment in rural area Axe 3 - Quality of life in rural areas and diversify the rural economy Axe 4 - Improving the local governance and promoting of endogenous potential of rural area. Since Romania applied for the first time such an approach, it will likely be the pilot for the period , with an emphasis on increasing awareness, strengthening local capacity and use the principle of "learning by doing" as the basis for the expansion nationwide during (Macovei Gh., 2002; Mihai C., 1997; Tofan Al., 1997). In this regard, starting February 20, 2008, was developed and approved by the EU rural development program "The National Program for Rural Development ", a unique program that covers the entire territory of Romania (Acatrinei Marilena, 2003; Merce Elena et all., 1999; Tofan Al. et all., 1997). MATERIALS AND METHODS The study was performed within the Agency for Payments and Actions in Agriculture the Branch of Botoşani district and analyzed the live-stock farms which benefited of direct financial support in accordance with the provisions of M.A.P.D.R. Order number 850/2006. RESULTS AND DISCUSSION In the year 2007, by means of the Agency for Payments and Actions in Agriculture the Branch of Botoşani district, a number of 3331 live-stock farms benefited of direct financial support in accordance with the provisions of M.A.P.D.R. Order number 850/2006, totaling up a sum of ,60 lei distributed as follows (Table 1): Table 1 Direct financial support granted to live-stock farms in Botoşani District Nr. crt. Specification Number of farms Sum granted per specific article 1 Broiler chicken 28 1,6 lei / Kg 4030,6 2 Families of bees ,04 3. Adult bovines lei / carcass 9,3 Pork carcasses, out of which : 5-10,7 - E class lei /carcass 5,9 4 - U class lei /carcass 4,8 5 Appropriate milk ,3 lei /liter (NTG ) 4630,9 Total ,5 Total -Thousands - Ron - 84

3 In accordance with the provisions of the Urgent Official Decision of the Government (O.U.G.) number 120/2002, which was modified by the O.G. number 74/2004 (published in the M.O. number 774/ ), and also by the Law number 245/ (M.O. number 632/ ) and by the Government Decision (H.G.) nr.1557/2002, which was modified and amended by the H.G. nr.2206/2004 (M.O. number 1234/ ) and the H.G. number 108/2006 (M.O. number 106/2006) concerning the allowance of the financial support from the State budget through the Programme of increasing the competitiveness of the alimentary products, it is granted from the State budget up to 75 % of the investments costs in the field of quality of the economic agents within alimentary industry, but not more than Euros/project, for the following activities : 1. implementing and certifying of quality management systems and/or environmental management systems; 2. equipment and/or fitting of laboratories of testing and standardizing, as well as their authorizing, registration and protection of Romanian brands, patents and industrial models and design on the foreign markets. The economic agents must follow the steps: taking possession and study of normative provisions, which are specific to the proposed field; preparing the file with the following items: - standard application in accordance with the H.G. 1557/2002; - documents proving the accomplishment of eligibility conditions for the economic agent, meaning: - the type of the company; - the certificate of registration in the trade register; - the last yearly balance sheet; - the fiscal certificate concerning local taxes and duties; - the certificate of fiscal acknowledgement issued by the Direction of Public Finances; - statement under the own responsibility concerning the existence of financial resources for co-financing; - statement under the own responsibility that the amount requested from the state budget, together with the other amounts received in the last three years from the state budget as support do not exceed Ron; - the organization chart and the decision of nomination as committee for elaborating and implementing of the project; - manufacturing licenses accordingly to the O.G. number 42/1995 concerning the production of alimentary product for sale. The project will have the following structure: - the project name and type; - the current situation of the company and the laboratory; - motivation of the project proposal; - export opportunities; - technical specification of equipments or proposal measures; - estimate and spreading out chart payments; - elements to ensure the sustainability of the estimated results, such as foresights of the main financial indicators for the next three years. An economic agent can benefit on other forms of financial support, such as: 85

4 - state aid for rural development through the intermediary of the Agency of Payments for Rural Development and Fishing (APDRP); - the state aid represents subsidies and loan awarded by the Ministry of Agriculture since 2007 to support the land cultivation and animal breeding). ADPRP will allow the state aid as follows: - support for the purchase of pure breed and reproductive animals; - loans for production; - subsidies for insemination centres of the producers' associations; - free specialized assistance offered by the County Office of by the County Office of Agricultural Assistance Botoşani; - technical specialized assistance for submission of application of support as subsidy; - economic specialized assistance provided by the authorized operators for the investment insurance ; - banking specialized assistance provided by the authorized bank operators for the payment of the financial support as subsidy; -legal assistance provided by the juridical persons of the Agency for the Payments and Actions in Agriculture- the Branch of Botoşani district; - free classes on regulations concerning the alimentary bio-safety performed by the buyers of live-stock products; - loyalty premium; - free courses in the fields with missing of specialized staff performed by mayor's offices in collaboration AJOFM Botoşani (for example: courses for insemination technicians); - free specialized assistance for obtaining of non-returnable funds provided by specializes services within the County Council and the Local Council; - continuous refresher courses of the public servants and other employees involved, which can be organized in perfecting centres or as postgraduate courses in university centres; - specializes symposiums organizes by the producers and suppliers of nutritional matters; - postgraduate course in management and marketing of projects for payments in agriculture for the public servants of DADR Botoşani, APIA Botoşani, OJCA Botoşani, OJRSA Botoşani. Also, national complementary payments, will be allowed to farmers depending on the budgetary resources and the needs producers for the animals which are breaded in commercial farms, as follows: for dairy cows (up to 650 lei / cow, depending on the quality of the milk delivered); for fattened bullocks (700 lei/ bullock, if its weight is over 500 kg.); for adult bovines delivered to slaughter house (around 450 lei/bullock). for sheep and goats (20 lei/head.). In addition, farmers will benefit of the financial support to adapt to the market mechanisms. This support represents some actions to protect the agricultural producers both in comparison with the competitors from outside the European Union and against the changing of the prices of agro-alimentary products. The authors recommend applying the following main market mechanisms to Romania after the entry in the European Union: 86

5 - the price of intervention, which represents the action of purchase or sale of some quantities of products on market by the state to protect the producers and the market in the conditions of overplus or deficit. This mechanism is appropriate primarily for cereals and will insure a right price of the wheat producers; - the export subsidies, which represent amounts of money to be allowed to the Romanian exporters who sell agro-alimentary goods outside the European Union, on condition that the sale price from outside the European Union is lower than the price on the internal market of the European Union. In the period , the European Union will allow around 12 thousand millions Euros or agriculture and rural development. This amount will represent 40 % of funds allowed to Romania for the next seven years. The financial support allowed to the agriculture in Botoşani District, has had the following aim: to strengthen the agricultural farms, to create new jobs, to provide higher qualitative and quantitative yields and to increase the labor productivity and the incomes from agriculture. CONCLUSIONS 1. In the year 2007, the direct financial support allowed in Botoşani District to the producers from the live-stock farms, was 8,8 millions lei, out of which 4,6 millions lei was dedicated to the appropriate milk (52.7 %), 4,03 millions lei to the broiler chicken (45.9 %) etc. 2. The economic agents from the agricultural sector of Botoşani District can also benefit of other forms of financial support, such as the state aid, the national complementary payments (for dairy cows, fattened bullocks, adult bovines, sheep and goats). 3. The application of the price of intervention and of the subsidies on the exportation outside the European Union market of the agro-alimentary products represents an important measure of financial support. REFERENCES 1. Alecu, I. şi colab., 1997, Management în agricultură, Editura CERES, Bucureşti, pag Acatrinei, Marilena, 2003, Zona liberă factor de dezvoltare a spańiului rural, Rev. Dezvoltare şi cooperare rurală, nr. 6, Editura Terra Nostra, Iaşi, pag Bucătaru, D., 1997, Teorii contemporane utilizate în managementul financiar al întreprinderii agricole. În vol., Managementul întreprinderii agricole româneşti în tranzińia către economia de piańă, Editura UniversităŃii Al. I. Cuza, Iaşi, pag Ciurea, I. V., Gh. Lăcătuşu, I. Puiu, 2000, ConsultanŃă agricolă, Editura Ion Ionescu de la Brad, Iaşi, pag Dobay, Krisztina Melinda, 2003, PosibilităŃi de acces a producătorilor agricoli la fonduri de finanńare speciale, Rev. Dezvoltare şi cooperare rurală, nr. 5, Editura Terra Nostra, Iaşi, pag Macovei, Gh., 2002, Managementul afacerilor mici şi mijlocii, Editura Pamfilius, Iaşi, pag Macovei, Gh., 2002, Managementul performanńei, Editura Pamfilius, Iaşi, pag Merce, Elena şi colab., 1999, Strategii de dimensionare a factorilor de producńie în agricultură, Editura Aletheia, BistriŃa, pag Mihai, C., 1997, Alternative de finanńare a investińiilor pentru agricultura românească. În vol. Managementul întreprinderii agricole româneşti în tranzińia către economia de piańă, Editura UniversităŃii Al. I. Cuza, Iaşi, pag Tofan, Al., 1997, Cu privire la eficienńa investińiilor agricole. În vol., Managementul întreprinderii agricole româneşti în tranzińia către economia de piańă, Editura UniversităŃii Al. I. Cuza, Iaşi, pag Tofan, Al., C. Mihai, D. Bucătaru, 1997, Gestiunea investińiilor agroalimentare, Editura Junimea, Iaşi,