Garlic production support programme – aid scheme

In the Official Gazette (Part I) no. 398 of 9 May 2023, HG 393/2023 was published on the approval of the scheme ”De minimis aid for the application of the Garlic Production Support Programme”, as well as for the establishment of some measures for its verification and control, in 2023.

The act establishes a transparent de minimis aid scheme, in accordance with the provisions of Commission Regulation (EU) No 1408/2013 of 18 December 2013, hereinafter referred to as the de minimis Regulation in the agricultural sector, namely the granting of de minimis aid to support garlic production, for the year 2023.

Schema de ajutor de minimis se aplica pe intreg teritoriul Romaniei in anul 2023, pentru sustinerea productiei de usturoi – Allium sativum.

According to HG 393/2023, the terms and expressions below have the following meanings:

 

a) de minimis aid – aid granted to an enterprise, the cumulative amount of which over three financial years, the financial year in question and two previous financial years, does not exceed the equivalent in RON of the amount of 20,000 euro, according to the provisions of Article 3 paragraph (2) of the de minimis Regulation in the agricultural sector;

b) competent authorities – the Ministry of Agriculture and Rural Development, through the county or Bucharest agriculture directorates, hereinafter referred to as DAJ, and the phytosanitary offices of the National Phytosanitary Authority, hereinafter referred to as OFJ;

c) enterprise – any entity which, according to point (4) of the preamble of the de minimis Regulation in the agricultural sector, carries out an economic activity, regardless of its legal status and the way it is financed;

d) single enterprise – the entity defined in Article 2(2) of the de minimis Regulation in the agricultural sector.

 

Beneficiaries, eligibility criteria and total amount of de minimis aid to support garlic production:

 

The de minimis aid scheme is granted to enterprises/single enterprises operating in the primary production of agricultural products to support garlic production.

The provisions of this scheme apply to the enterprises/single enterprises defined under c) and d) for garlic crops respectively:

 

a) agricultural producers who are natural persons holding a producer’s certificate issued on the basis of Law no.145/2014 for the establishment of measures regulating the market for products in the agricultural sector, as subsequently amended and supplemented, valid until 31 December 2023;

b) agricultural producers who are authorised natural persons, individual enterprises and family enterprises, established according to the provisions of Government Emergency Ordinance no. 44/2008 on the conduct of economic activities by authorised natural persons, individual enterprises and family enterprises, approved with amendments and additions by Law no. 182/2016, with subsequent amendments and additions;

c) agricultural producers who are legal entities.

 

In order to be eligible for de minimis aid for garlic production, beneficiaries must cumulatively meet the following eligibility criteria:

 

a) to apply for the de minimis aid provided for in this Decision;

b) to use an area cultivated with garlic of at least 3.000 sqm, marked in a visible place with a sign-board on which is written “Program for the support of garlic production, year 2023, beneficiary number ………………………., County Agriculture Directorate ……………………./ Municipality of Bucharest”, with a minimum recommended size of 50 cm/70 cm;

c) to obtain a minimum production of 3 kg of garlic per 10 m2 of the area specified in point b);

d) to be registered in the Agricultural Register opened at the town halls in whose administrative-territorial radius the areas cultivated with garlic are located in 2023;

e) to hold the register of treatments with plant protection products, according to the model provided in Annex no. 7, completed from the date of establishment of the crop and approved by the OFJ;;

f) to provide proof of production according to the provisions of point c) by means of supporting documents, depending on the form of organisation.

 

The production referred to in point (c) shall be used from 1 June to 21 November inclusive of the application year.

 The proof of garlic production is the copy of the daily closing tax reports/tax voucher/invoice/ invoice/ sales booklet/ files.

Please note that the amount of financial support granted under the de minimis aid scheme is expressed as a subsidy.

 

The maximum amount in euro of the de minimis aid financial support to be granted to beneficiaries is 3,000 euro/ha and is paid in lei at the exchange rate of 4.9490 lei, set by the European Central Bank on 30 September 2022, published in the Official Journal of the European Union (JOUE), Series C, No 323 of 3 October 2022.

total amount of de minimis aid to be granted to an enterprise/single enterprise may not exceed EUR 20,000 over a period of three financial years, during the current financial year, i.e. the year of submission of the application for the programme provided for in Article 5 patragraph (1) letter (b), and the two previous financial years, as provided for in Article 3 paragraph (2) of the de minimis Regulation in the agricultural sector.

Payment is granted in proportion to the area actually cultivated.

According to HG 393/2023, the de minimis aid amounts shall be paid to the beneficiaries in a single instalment in 2023 until 15 December 2023 at the latest.

The financial resources necessary for the implementation of the de minimis aid scheme provided for in this decision are 29,700 thousand lei, representing the equivalent of 6,001.2 thousand euro, and are provided from the budget approved by the Ministry of Agriculture and Rural Development for 2023, under Chapter 83.01 “Agriculture, forestry, fish farming and hunting”, Title 51 “Transfers between public administration units”, Article 51. 01 “Current transfers”, paragraph 51.01.01 “Transfers to public institutions”, to the county and Bucharest municipality directorates for agriculture, which provide the amounts necessary to grant the scheme under Chapter 83.10 “Agriculture, forestry, fish farming and hunting”, Title 40 “Subsidies”, Article 40.15 “Support for agricultural producers”.

 

How de minimis aid is granted:

            According to HG 393/2023, applicants complete and submit the application for the program, accompanied by the following documents:

 

a) copy of the ID card of the applicant or of the legal representative, if the application is submitted through a legal representative/ authorised representative;

b) copy of the producer’s certificate valid until 31 December 2023;

c) power of attorney/notarised power of attorney and a copy of the B.I./C.I. of a representative, if applicable;

d) a copy of the certificate of registration with the National Trade Register Office/National Register of Associations and Foundations or of the act on the basis of which it carries out its activity;

e) proof of an active bank/treasury account;

f) certificate, in original, from the Agricultural Register, according to the entries for the year 2023, certifying the area of land cultivated with garlic used by the applicant on the basis of any legal act conferring the right to use the land in question;

g) the declarations on their own responsibility, in accordance with the models set out in Annex 2.

 

The application form and the above documents must be submitted no later than 31 May of the application year.

 The application form, accompanied by the mentioned documents, can be submitted to the County Agricultural Directorate (DAJ) and by electronic means and/or by post/ courier.

The documents sent by electronic means must be signed and dated, and the copies must be certified “true to original” by the applicant.

In case the applicant uses areas of land cultivated with garlic located in different counties/administrative-territorial units, he/she shall formulate and submit a single application for the programme to the DAJ where he/she has the largest cultivated area.

The DAJ checks the documents submitted by the applicants and fills in the Single Register for accessing the Garlic Production Support Programme.

The County Directorates for Agriculture and the Bucharest Municipality approve the amounts of de minimis aid for each beneficiary and ensure that the total amounts granted to the applicant are within the maximum ceiling.

The DAJ shall draw up a list of the beneficiaries of the de minimis aid and the amounts granted according to this decision, as well as any other amounts granted to these beneficiaries through other de minimis schemes in the current financial year and in the two previous financial years.

The DAJ publishes on the institution’s website the list of the beneficiaries of the de minimis aid and the amounts granted according to this decision.

 

Important aspects !

 

The de minimis aid granted under this Decision shall be taken into account for deduction from any future de minimis aid scheme.

The de minimis aid provided for in this Decision shall not be granted to applicants whose area is obtained by dividing an area cultivated with garlic after the date of entry into force of this Decision, irrespective of the method of transfer of the area, with the exception of inheritance and sales contracts registered in the agricultural register.

Field checks and evaluation of garlic production before harvesting shall be carried out on the basis of an internal procedure drawn up by the structure responsible for technical inspections within the Ministry of Agriculture and Rural Development, within a maximum of 10 working days from the date of entry into force of this Decision.

 

Legal basis:

– HG 393/2023 on the approval of the scheme ”Aid de minimis for the application of the Programme for the support of garlic production”, as well as for the establishment of measures for its verification and control, in 2023;

– https://www.madr.ro/