Florin Barbu, Minister of Agriculture, announced an emergency legislative measure to support the agricultural sector in Romania. The proposed Emergency Ordinance provides for the modification of the deadlines for the completion of investments within the Support Programs for pig and poultry breeders.
Florin Beard transmits that this measure will allow the beneficiaries of the two programs to request an extension of the maximum term for making investments by up to 18 months, instead of the current limit of 6 months.
By Law no. 195/2018 regarding the approval of the Program to support pig breeders for the reproductive activity and by Law no. 227/2018 regarding the approval of the Support Program for the activity of reproduction, incubation and growth in the poultry sector, the deadline for making the investments was regulated, namely 18 months from the granting of the first payment related to the financial support, with the possibility of extending it, at the request of the beneficiary , with a maximum of 6 months.
Florin Barbu mentions that, currently, through the Support Program for pig breeders for reproductive activity approved by Law no. 195/2018, a number of 25 contracts are concluded, which generate the establishment of 46.599 accommodation places for breeding pigs in commercial farms, places whose popularity will generate a production of about 1,17 million piglets annually.
Through the Support Program for the activity of reproduction, incubation and growth in the poultry sector approved by Law no. 227/2018, a number of 38 contracts are concluded, which generate the establishment of 8,7 million accommodation places for the activity of breeding, reproduction, incubation in the poultry sector.
Taking into account the fact that during the implementation of the investment projects contracted through the two programs, due to causes independent of the will of the beneficiaries, related to the international economic context, the labor force crisis in our country, as well as the inability of equipment suppliers to and honor the contracts on time, there have been situations where the beneficiaries, despite the efforts made, are unable to respect the investment completion deadline assumed by the contract.
Florin Barbu points out that, considering the importance of making these investments for ensuring the food security of the population and fulfilling the objectives of the Governance Program for the period 2021-2024, as well as the complexity of the two programs, the expenses already committed to the beneficiaries, the risk of entering bankruptcy of the beneficiaries in the absence of completion of the investments.
A fact that will cause major collateral effects at the level of suppliers of materials, equipment and services, as well as the losses that the state budget would record in this situation, in order to preserve the viability of the started projects, the need to extend the period for completing the investments made through through the two programs.
The negative consequence of not adopting these measures is the non-completion of some of the investment projects for which financing contracts were concluded, generating considerable losses to the beneficiaries who have already incurred significant expenses with the preparation of documentation, the geotechnical study, the feasibility study, design works, the purchase/ acquiring the right of use for the lands on which the investment is made, consultancy, as well as other expenses necessary for the implementation of the projects.
Florin Barbu explains that the purpose of this emergency ordinance of the Government is the possibility of extending the maximum period for making investments by a maximum of 18 months, instead of 6 months.
The benefits estimated by the entry into force and application of the measures contained in this draft normative act are intended to reduce or eliminate the probable and possible negative consequences generated by the current situation, such as the non-completion of some of the investments.
It is also possible to fail to reach the objective regarding the establishment of accommodation places for pig reproduction in commercial farms and accommodation places for the activity of breeding, reproduction, incubation in the poultry sector, as well as the generation of economic losses for the beneficiaries of the programs.
Adoption of this ordinance is a crucial step to ensure the continuity of the started investments and to support a vital sector of the national economy.
