State aid scheme for agricultural producers

Law No 170/2023 on the establishment of a state aid scheme for agricultural producers of vegetables, fruit and potatoes was published in the Official Gazette (Part I) No 532 of 15 June 2023, with effect from 18 June 2023.

The document establishes a temporary state aid scheme to support sorting, packaging, labelling and transport activities for producers of fruit and vegetables and potatoes, hereinafter referred to as the Scheme.

 

Please note that the scheme applies throughout Romania.

 

According to Law no. 170, the terms and expressions below have the following meanings:

 

  • enterprise – any entity engaged in an economic activity, regardless of its legal form, according to Article 1 of Annex I to Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agriculture and forestry sector and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union, as amended and supplemented;
  • producer of vegetables, fruits and potatoes – legal entity, natural person registered for tax purposes according to the provisions of Government Emergency Ordinance no. 44/2008 on the conduct of economic activities by authorized natural persons, individual enterprises and family enterprises, approved with amendments and additions by Law no. 182/2016, with subsequent amendments and additions, agricultural cooperative established, organised and operating in accordance with the Agricultural Cooperative Law No. 566/2004, with subsequent amendments and additions, and the Companies Law No. 31/1990, republished, with subsequent amendments and additions, group/organisation of producers, producing and marketing fruit and vegetables and/or potatoes;
  • aid scheme – any act on the basis of which, without further implementing measures being required, individual aid awards may be made to undertakings, and any act on the basis of which aid which is not linked to a specific project may be awarded to one or more undertakings;
  • Protected areas – specially designed areas that aim to protect vegetable and fruit crops through different mechanisms and made of different materials, such as greenhouses, solariums, protective tunnels.

 

According to the new regulations, the scheme is granted to applicants who cumulatively meet the following conditions:

a) be a legal entity, a natural person entered in the agricultural register and registered for tax purposes according to the provisions of Government Emergency Ordinance no. 44/2008, approved with amendments and additions by Law no. 182/2016, with subsequent amendments and additions, an agricultural cooperative established, organized and operating according to Law no. 566/2004, with subsequent amendments and additions, and Law no. 31/1990, republished, with subsequent amendments and additions, a group/organization of producers, as appropriate;

 b) to own and operate, in their own name or through cooperative members/associates, areas cultivated with vegetables, potatoes, fruit, fruit tree plantations, plantations of fruit trees and/or semi-shrubs, plantations of table grapes for human consumption;

 c) market vegetables, potatoes and/or fruit;

 d) in the case of protected areas, the minimum surface area for cultivation is 500 square metres;

 e) provide documentary evidence that they have carried out the activities referred to in Article 1 and that the value of the annual production marketed for which aid is requested was at least EUR 1 000, the equivalent in RON at the rate of the National Bank of Romania on the date of marketing;

 

  1. f) they are not in liquidation or bankruptcy at the date of access to State aid without a final decision of the courts of law establishing bankruptcy by that date.

 

The amounts granted by way of state aid, according to Law no.170, are not subject to execution by distraint if the execution procedure has been initiated against their beneficiaries.

It is important to note that this aid scheme is granted for a period of 3 years, for domestic production and only once a year.

The amount of state aid represents 20% of the value of the marketed production and is granted annually, but may not exceed EUR 100,000, the equivalent in lei at the exchange rate of the National Bank of Romania on the date of marketing, in the case of legal entities and individuals registered for tax purposes in accordance with the provisions of Government Emergency Ordinance no. 44/2008, approved with amendments and additions by Law no. 182/2016, with subsequent amendments and additions, respectively 300,000 euros, the equivalent in lei at the exchange rate of the National Bank of Romania on the date of commercialization, in the case of agricultural cooperatives established, organized and operating according to Law no. 566/2004, with subsequent amendments and additions, and Law no. 31/1990, republished, with subsequent amendments and additions, and producer groups/organizations.

The necessary funds for the scheme are provided from the state budget, through the budget of the Ministry of Agriculture and Rural Development.

State aid provided for by Law 170/2023 may be cumulated with other forms of support granted in accordance with the European and national legislation in force.

The application for payment of state aid is submitted to the institutions responsible for this area, established by the Ministry of Agriculture and Rural Development by methodological rules.

The Ministry of Agriculture and Rural Development notifies the scheme to the European Commission.

If the European Commission’s decision to grant state aid contains new or different provisions from the notified scheme, the provisions of the scheme are supplemented and/or amended accordingly.

 

 Legal basis:

– Law No 170/2023 on the establishment of a State aid scheme for agricultural producers of vegetables, fruit and potatoes

– https://www.madr.ro/