The Ministry of Agriculture and Rural Development (MADR) has published a draft Emergency Ordinance on decision transparency, establishing a state aid scheme to support the activities of beef cattle and buffalo breeders in the context of the crisis caused by Russia's aggression against Ukraine.

The estimated value of the aid scheme is 79,427,740 lei, equivalent to 16,100,000 euros, with an estimated number of potential beneficiaries being 6,000. The estimation is based on:

• A population of approximately 150,000 beef cattle: 100 euros per head x 150,000 heads = 15,000,000 euros, or 73,900,500 lei.
• A population of approximately 11,000 buffaloes: 100 euros per head x 11,000 heads = 1,100,000 euros, or 5,419,370 lei.

The proposed amount for state aid is 100 euros per head of beef cattle/buffalo.

This measure is based on the provisions of point 62 of the European Commission Communication amending the Temporary Framework for crisis and transition measures for state aid to support the economy following Russia's aggression against Ukraine.

Thus, a temporary state aid scheme will be established to support the activities of beef cattle and buffalo breeders from October 1, 2022, to March 31, 2023, in the context of the crisis caused by Russia's aggression against Ukraine. This scheme is valid until June 30, 2024, to compensate for losses caused by the increase in prices for fodder, fuel, and other costs.

Beneficiaries of the scheme can include animal breeders—individuals, legal entities, individual or family enterprises, authorized individuals, as well as agricultural companies established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture, with subsequent amendments and completions, who permanently own beef cattle and/or buffaloes listed in the National Livestock Database (BND) as animal or farm owners.

Additional information:

ELIGIBILITY CONDITIONS:

• Possession of beef cattle and/or buffaloes aged at least 12 months on March 31, 2023, on the farm with the National Sanitary Veterinary and Food Safety Authority (ANSVSA) code and/or in the farms of associations/cooperatives/groups of producers where they have been temporarily transferred, registered in the BND.
• Beef cattle and buffaloes for which state aid is requested must be registered in the breed's genealogical registry, in the main or supplementary section.
• Existence, on the day before the application submission period begins, of at least 50% of the number of beef cattle and/or buffaloes owned on March 31, 2023.

The total amount that can be granted to each enterprise engaged in primary agricultural product production will not exceed the equivalent of 280,000 euros in lei. The exchange rate for calculating the maximum total value/amount is the one communicated by the National Bank of Romania on August 1, 2023, namely 4.9334 lei/euro.

The application period is 30 working days from the date of entry into force of this emergency ordinance, and the proposed payment deadline is June 30, 2024.

Funds come from the state budget within the budgetary provisions approved by the Ministry of Agriculture and Rural Development for 2024.

The draft can be reviewed at the following link: Link to the draft.