MADR Decision: Help the mountainous region!

According to the normative bill, “The deadline for implementing the aid plan is December 31, 2022. Payments related to the program are to be made until December 29, 2023 at the latest. The budget for the aid plan for 2022 is 63,000 lei. The euro equivalent of the euro amount is 12,732 thousand euros.

Eligible beneficiaries, regardless of the type of investment they choose, must cumulatively meet the following conditions:
a) to carry out their activity in the mountainous region;
b) access to only one type of investment from those specified, only once during the entire program period;
c) they have not received support through the National Human Development Program 2014-2020, including during the transition period to the new CAP, for the same eligible expenditures related to the types of investments.

Realization of investments in collection centers for forest fruits, mushrooms and/or medicinal and aromatic plants from wild and/or cultivated plants in the mountainous region

The maximum eligible project value, allowed for this type of investment, is 600,000 lei, of which 40% is state aid.can be increased in the case of young farmers or collective investments (details below do not), and the beneficiary’s contribution represents the difference, depending on the percentage of government aid.

The eligible expenses for the investment type are:
(i) expenses in connection with the establishment of centers for the collection of forest fruits, mushrooms and/or medicinal and aromatic plants from spontaneous and/or cultivated plants; Purchased land is eligible only for up to 10% of the total eligible costs related to the construction of centers for collecting forest fruits, mushrooms and/or medicinal and aromatic plants from spontaneous and/or cultivated plants;
(ii) Expenses arising from the purchase or rental of machinery, equipment and means of transport, within the limits of the market value of the assets, allocated to the type of investment;
(3) General expenses directly related to the expenses stipulated in the letter (1) and (2) within a maximum of 7% of their value, such as service expenses, i.e. development of feasibility studies, geotechnical studies, topographic studies, environmental studies, construction projects, services Architectural, consulting and licensing.

It is not allowed to buy or rent used machinery, equipment and means of transportation through investments.

For investments, the following are not considered eligible expenditures and are not permitted by the project:

i) purchase of production rights, annual payment rights and factories;
b) annual cultivation.
(3) investments made in order to comply with the standards in force in the Federation;
4) costs related to lease contracts such as lessor margin, interest refinancing costs, indirect expenses and insurance expenses.
c) working capital.

The severity of the assistance should not exceed 40% of the amount of eligible expenses.

The intensity of the assistance may be increased by 20% for each of the cases provided for in Letter 1) – 3) below, provided that the maximum value of the aggregated government assistance does not exceed 90% of the value of the eligible investment expenditures for:

(1) Small farmers or farmers who have settled in the five years preceding the date on which the application for assistance was submitted;
(ii) Investments made in areas that encounter natural or other specified limitations, as defined in Art. 3, lit. a) From Law No. No. 333/2018 on the approval of the investment program for the establishment of collection centers or collection and processing of forest fruits and / or mushrooms and / or medicinal and aromatic plants from saplings and / or cultivated in the mountainous region, with subsequent modifications and additions;
(3) Collective investments – Investments made by producer groups or agricultural cooperatives, as defined in Article 4, paragraph. (2), lit. c) From Law No. No. 333/2018 regarding the approval of the investment program for the establishment of collection centers or collection and processing of forest fruits and / or mushrooms and / or medicinal and aromatic plants from spontaneous and / or cultivated plants in the mountainous region, with subsequent amendments and additions.

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Realization of investments in centers for collecting and processing forest fruits and / or mushrooms and / or medicinal and aromatic plants from spontaneous and / or cultivated plants in the mountainous region:

The maximum eligible total value of the project, allowed for this type of investment, is 800,000 lei, of which 50% represents state aid and 50% represents the beneficiary’s contribution.

The eligible expenses for the investment type are:

(i) expenditures relating to the establishment of centers for the collection and processing of forest fruits, mushrooms and/or medicinal and aromatic plants from spontaneous and/or cultivated plants; Purchased land is eligible only for up to 10% of the total eligible costs related to the construction of centers for the collection and processing of forest fruits, mushrooms and/or medicinal and aromatic plants from shoots and/or cultured plants;
(ii) Expenses arising from the purchase or rental of machinery, equipment and means of transport, within the limits of the market value of the assets, allocated to the type of investment;
(3) General expenses directly related to the expenses stipulated in the letter (1) and (2) within a maximum of 7% of their value, such as service expenses, i.e. development of feasibility studies, geotechnical studies, topographic studies, environmental studies, construction projects, services Architectural, consulting and licensing.

For investments, the following are not considered eligible expenditures and are not permitted by the project:

i) purchase of production rights, annual payment rights and factories;
b) annual cultivation.
(3) investments made in order to comply with the standards in force in the Federation;
4) costs related to lease contracts such as lessor margin, interest refinancing costs, indirect expenses and insurance expenses.
c) working capital.

The severity of the assistance should not exceed 50% of the amount of eligible expenses.

Applications are submitted to the National Mountain Region Agency!

As of the date of entry into force of this decision, applicants can submit an application for financing to realize the planned investments, in electronic format on the online platform provided by ANZM on the website www.azm.gov.ro The application is completed in electronic format according to the form in Appendix No. 1 for this decision.

The application for funding is attached to the following documents:
a) a copy of the BI / CI of the legal representative;
b) a copy of the certificate of registration with the National Commercial Registry Office, as well as any other document certifying the form of establishment and organization of the applicant;
c) a copy of the Extended Verification Certificate issued by the National Commercial Registry Office showing the CAEN code corresponding to the activity to be funded and the fact that it is not in bankruptcy, liquidation or dissolution proceedings;
d) proof of an account in a commercial bank or treasury, and an address for calling the IBAN code from the bank statement;
e) an extract from the Land Registry, no more than 7 days old from the date of the application for financing, with which it is possible to obtain the right to own or use the land, on which construction will be carried out, as the fact that the land is free of tasks;
f) Power of attorney/notary public and copy of BI/CI of authorized natural person, as the case may be;
g) notification of recognition issued by MADR, to the beneficiaries of the groups of producers provided for in Art. 3 paragraph 2 lit. b) From Law No. 333/2018 with subsequent amendments and additions.
h) Feasibility study for investments of art. 5 paragraph. (1) or (11) 1) a financial certification certificate, including declared action points, issued by the competent body within ANAF which does not include accrued financial obligations as well as other individual budget claims in enforceable bonds issued in accordance with the law, valid on the date of registration funding request;
j) A certificate evidencing the absence of debts owed to the local budget, valid on the date of registration of the financing application, issued by the Town Hall within a radius where the applicant has his registered office and workplace, only if the applicant is the owner of the premises.
k) A financial record showing that the applicant for financial support has not committed acts punishable under the Finance, Accounting, Customs and Financial Discipline Acts, issued by the relevant body within ANAF,” states the draft government decision.

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