“Once mutual funds are set up, Romanian farmers will face no risks related to weather or loss caused by market differences. (…) The creation of mutual funds is the most significant achievement of the Romanian agriculture over the past ten years,” Agriculture Minister Daniel Constantin said Friday.
Mutual funds will cover weather-related risks such as damage caused by hail and drought.
According to Constantin, fund operation costs will be covered from European rural development funds for three years.
The Agriculture Ministry has scheduled meetings with the associations of farmers which expressed their willingness to join the funds, Constantin said.
Mutual funds will be 65% financed with national and EU money. Its members will contribute the remaining 35%.