Recognised producer groups shall receive a non-repayable financial support from the State for a period of five years from the date of recognition, certifying that the group meets all the legal conditions relating to its establishment and activity, and that it has the technical and professional capacity to achieve the proposed objectives.

The meeting of the State Secretaries included on the agenda project Government Decision approving the Regulation on the procedure for the recognition of agricultural producer groups.

It provides that, for the purposes of recognition of agricultural producer groups, a committee of 7 members will be set up, which will examine applications for recognition of agricultural producer groups, verify the accuracy of the information in the file and issue a decision recognising or rejecting the application.

In order to be recognised, the producer group must meet the following conditions

· be legally registered in one of the legal forms of organisation;

· be made up of at least 5 members, agricultural producers, none of whom may hold more than 20 % of the votes at the general meeting;

· have a centralised system for the accounting, invoicing, recording and monitoring of the quantity, quality and value of its members’ production marketed through the group of agricultural producers.

The administrator or representative of the agricultural producer group shall submit to the Ministry of Agriculture, Regional Development and the Environment recognition file in duplicate, containing: the application, copies of the instruments of incorporation, copy of the decision of the general meeting of the group or of the body authorised by it, proof of the legal ownership, lease or management of the real estate by each member of the group, declaration on honour on the veracity of the data, copy of the financial report for the year preceding the year of management and certificate of the absence of arrears of taxes and charges to the public budget.

It will also be attached to the file. Recognition plan with the general and detailed description of the producer group, the owned or leased fixed and current assets, the description of the activities, information on the implementation of the centralised accounting system as well as certain indicators to be achieved by the group.

The recognition plan shall be valid for a period of five years from the moment the opinion is issued. The producer group shall submit to the Paying Intervention Agency for Agriculture, which is responsible for managing the financial sources intended to support the agricultural producer groups, an annual report on the implementation of the Plan (no later than 15 May of the year following the year of reporting). At the same time, The Agency will monitor the maintenance of the conditions for recognition by checking documents, carrying out field visits, identifying the extent to which the proposed objectives have been achieved.

The financial support granted by the State for the valorisation of the production marketed annually by the recognised producer group shall be used in accordance with the Law on agricultural producer groups and their associations.

For not fulfilling the requirements of the Recognition Plan AIPA can apply sanctions by reducing the amount authorised for payment per year of grant.

The implementation of the proposal does not involve the allocation of financial sources from the state budget, and the financial means approved for the National Fund for the Development of Agriculture and the Rural Environment have been used. In accordance with the Law on the State Budget for 2020, financial resources in the amount of RON one billion were allocated to this Fund.

Source: monitor.fisc.md