OREANDA-NEWS. April 26, 2011. The Moldovan Government has set directions of use of the Agricultural Producers Subsidizing Fund for 2011 in the amount of 250 million leis. The Minister of Agriculture and Food Industry Vasilii Bumacov told journalists that according to the decree, adopted by the Cabinet of Ministers, the money will be used to encourage crediting of agricultural producers by commercial banks and other financial institutions, to encourage insurance of risks in agriculture, investment for making of perennial plantations, funding production of vegetables on the protected ground, encourage investment for purchasing new agricultural machines and equipment, irrigational and anti-hail systems.

The Fund’s money is also intended for promoting and developing ecological agriculture, encouraging investment in technological re-equipment of stock-raising firms. The Head of the Ministry of Agriculture said the gratuitous financial aid provided by the state to the agrarian sector aims to achieve such important objectives as rise in the productivity and competitiveness of agriculture, largely oriented on the market, to provide the country’s food security by supporting home agrarians and reducing foodstuffs imports.

In 2010, the Agricultural Producers Subsidizing Fund amounted to 400 million leis. The Ministry of Agriculture expects that with the revision of the Law on 2011 state budget, the volume of the Fund will be increased. Earlier, Moldovan Prime Minister Vladimir Filat came out in favor of improving the system of funding in agriculture, stressing that those economic agents, which work efficiently and achieve successes should be funded.