Aid scheme for cattle breeding

In the Official Gazette (Part I) no. 116 of February 9, 2023, OUG no. 3/2023 was published regarding the establishment of a state aid scheme to support the activity of cattle breeders, in the year 2022, in the context of the crisis caused by Russia’s aggression against Ukraine.

The government adopted this normative act which aims to create the legal framework for the establishment of a state aid scheme to support the activity of breeders in the cattle breeding sector, for the second semester of 2022, by compensating the losses generated by the increase in feed prices, electricity and natural gas.

According to a press release from the Ministry of Agriculture and Rural Development (MADR), the estimated value of the aid scheme is 217.756 million lei, the equivalent of 44 million euros.

 

 The amount of state aid is 73 euros/head of animal for an estimated herd of 602,740 heads.

 The total amount that can be granted for each enterprise that carries out its activity in the field of primary production of agricultural products does not exceed the equivalent in lei of 250,000 euros.

 

 

The submission period is 30 working days, starting from the day following the entry into force of this Emergency Ordinance, and the payment deadline is 31 December 2023.

According to OUG 3/2023, the beneficiaries of this state aid scheme are dairy cow farmers, i.e. individual and family enterprises, authorised natural persons, natural persons, as the case may be, and legal persons.

According to the document, state aid is granted to beneficiaries who meet the following eligibility criteria:

 

a) have at least 10 adult cows on their holding with ANSVSA code, registered in the BND, with the exception of those in administrative-territorial units in mountain areas provided for in the PAC Strategic Plan 2023-2027, approved by Commission Decision C(2022) 8.783 of 7 December 2022, published on the website www.madr.ro, “https://pndr.ro/documente/ro/PNS-2023-2027-lista-zonelor-eligibile-pentru-interventiile-HNV-ANC-AEC.xlsx”, which have at least 5 adult cows on their holding with ANSVSA code, registered in the BND ;

b) have produced and marketed milk between 1 August 2022 and 31 December 2022;

c) the beneficiary of the State aid may be different at the time of application from the owner of the adult cows on 31 July 2022 for the following cases, provided that the date of the change in the form of organisation/breeding is between 31 July 2022 and the date of application for State aid:

 

– the beneficiary is an authorised natural person – PFA, individual enterprise – II, family enterprise – IF, and the adult cows are listed in the BND  on 31 July 2022 on the personal number code – CNP of the representative of the PFA, II, IF;

– the beneficiary is a natural person – CNP of the representative of the PFA/II/IF, and the adult cows are listed in the BND on 31 July 2022 under the unique registration code – CUI of the PFA/II/IF;

 

d) at least 75% of the adult cows referred to in point (a) are in existence on 31 December 2022, except for those which are in one of the following situations: bankruptcy, liquidation, force majeure or holdings subject to veterinary health restrictions on the movement of animals due to the diseases referred to in Article 5(1)(a) of Regulation (EU) 2016/429;

e) are registered in the single identification register, hereinafter referred to as the RUI, and have a unique registration code assigned by the Agency for Payments and Intervention in Agriculture;

f) they are not in reorganization, liquidation or bankruptcy, as of February 24, 2022, according to the records of the National Trade Registry Office, or, in the case of natural persons, a final decision of the courts of law declaring bankruptcy has not been issued by February 24, 2022.

 

The general documents for accessing the scheme are:

 – copy of the beneficiary’s ID/CI, the beneficiary’s registration certificate at the National Trade Registry Office, power of attorney and a copy of the ID/CI of the legal representative;

– the document issued by the users of the National System for the Identification and Registration of Animals – SNIIA, showing the number of adult cows held on 31 July 2022, as well as the number of cows held on 31 December 2022, in the holding(s) with the code assigned by the National Sanitary Veterinary and Food Safety Authority, registered in the application;

– bank/treasury details.

 

The specific documents accompanying the application are the following, as appropriate:

 

  • in the case of a sale to the first buyer: a copy of the contract concluded for a minimum period of 6 months with a first buyer, valid from 1 August to 31 December 2022, accompanied by the following documents depending on the form of organisation, i.e. for the producer PJ/PFA/II/IF copies of the daily closing tax reports/invoices/invoices showing that he has sold milk from 1 August to 31 December 2022, and for the natural person producer, a copy of the producer’s certificate issued before 1 August 2022 and valid at least until 31 December 2022, as well as a copy of the file(s) from the marketing book for agricultural products, showing the quantity of milk used during the period 1 August – 31 December 2022;
  • in the case of other types of recovery:
  • a copy of the page(s) of the marketing booklet for products in the agricultural sector for the natural person producer, showing the quantity of milk recovered between 1 August and 31 December 2022, accompanied by a copy of the producer’s certificate issued before 1 August 2022 and valid at least until 31 December 2022, and the health and veterinary document for recovery;

 

– through milk vending machines, regardless of the legal form of organisation, a copy of the notice accompanying the goods and of the order for collection of the value/fiscal documents relating to the milk marketed for the producer who carried out the recovery of the milk between 1 August and 31 December 2022;

–  at the own processing unit, a copy of the delivery notes and of the receipt and delivery notes issued by the processing unit, showing the delivery and receipt of the milk during the period from 1 August to 31 December 2022, as well as a copy of the certificate issued by the ONRC showing the object of activity, i.e. milk processing.

The documents submitted/transmitted in copy by the beneficiary shall bear the words “true to original”, shall be dated and signed by the beneficiary.

All documents submitted for the purpose of applying for the state aid granted according to this emergency ordinance shall be kept at the county/local centres or the centre in Bucharest of APIA for a period of 10 fiscal years from the date on which the aid was granted.

All documents attesting the aid due are kept by the beneficiaries of the state aid for a period of 10 fiscal years from the date of receipt of the amount due.

The text of the scheme and the information relating to each beneficiary whose financial support exceeds the amount of 10,000 euro is published on the APIA website at www.apia.org.ro.

 

We mention that the beneficiary is obliged to notify any change in the data in the application to the county centre of APIA, respectively of the municipality of Bucharest where the application was submitted, within 5 working days of the change, but no later than the date of approval for payment.

 

Legal basis:

-Emergency Ordinance (OUG) 3/2023 on the establishment of a state aid scheme to support the activities of cattle breeders in 2022, in the context of the crisis caused by Russia’s aggression against Ukraine.

        – https://apia.org.ro/.