On Wednesday, 5 August, the Agricultural Consultative Council agreed to urgently advance the draft regulations of the Cabinet of Ministers on granting loans to primary agricultural producers for refinancing their credit liabilities.
The new loan programme, administered by Development Finance Institution Altum, is intended for farmers whose financial situation has been negatively affected in recent years by rising production costs and loan interest rates, adverse weather conditions and fluctuations in agricultural product prices. These factors have reduced the income of some farms and made it difficult for them to meet their existing credit liabilities on time.
At the same time, the Council decided to assess, within one month of the launch of the programme, the response of primary agricultural producers and the available funding in order to consider expanding the group of eligible beneficiaries to include eligible agricultural cooperatives.
The meeting also discussed amendments to the regulatory framework for CAP Strategic Plans that entered into force on 22 July this year. The amendments allow Member States to increase funding for direct payments in 2027 in order to support the implementation of the CAP Strategic Plan and, where necessary, respond to unforeseen circumstances, including mitigating the impact of rising fertiliser prices on the agricultural sector.
The Ministry of Agriculture proposed making use of the possibility provided for in the EU regulations to increase funding for direct payments in 2027 by the maximum amount permitted, with the additional funding primarily allocated to eco-schemes, under which agricultural practices promote more efficient use of fertilisers or reduce their use.
The members of the Council supported the Ministry of Agriculture’s proposal to make use of this possibility and increase funding for direct payments in 2027 by EUR 35.2 million, while also advancing the relevant amendments to the CAP Strategic Plan.
The amendments must be submitted to the European Commission (EC) by 31 August this year and will enter into force only after approval by the EC.
