The main goal of this seventh amendment to the program is to improve Romania’s absorption of EU funds in 2007-2013, says a press release by the Ministry of Agriculture.
With regard to farm modernization, the changes extend the date at which standards concerning nitrates and raw milk become mandatory, as well as the expiration of the grace period for the two standards. In addition, the sector of cattle raised for meat will be granted priority and the maximum eligible value of a project in the vegetable farming sector will be EUR1 million.
In the case of the program section “Increasing the added value of farming and forest products,” the expiration of the grace period for applicable standards has been pushed back. Micro-enterprises for slaughtering and meat processing, and milk collection and processing businesses, have been given priority. The new program version introduces a cap on the eligible value of projects for such investments.
Aid for investments in the non-farming production sector has been raised from 70% to 85%, under the chapter regarding support for the creation and development of micro-enterprises.
Support for investments in agritourism has also been increased to 85% from 70%, along with the maximum cap on investments, from EUR70,000 to EUR100,000 per project.
Other changes to the program include the introduction of new packages under the chapter “farming-environment payments,” and adjustments to the project selection process.
The Rural Development Program has a budget of EUR10.09 billion in 2007-2013, including EUR8 billion form the European Union.