Filenews 21 February 2022 - by Angelos Nikolaou
An amount of €37 million will be allocated to farmers in 2022, under the three investment measures announced by the Rural Development Programme. This is the announcement of two investment measures of the RDP related to the modernisation and competitiveness of our agriculture and one concerning the financial support of farmers affected by the fire of the summer of 2021.
Specifically, measure 4.1 "Investments in agricultural and livestock farms" was announced with a total amount of €30 million, as well as measure 6.1 "First establishment of young farmers" with an amount of €5 million. In addition, another investment measure was announced, 5.2, which is related to the support of investments to restore the agricultural production potential of farms affected by last summer's fires. This measure has a total amount of €2 million and provides for financial support of up to 100% of the costs to be incurred by the farmers affected.
One of the most important measures announced in 2022 is 4.1 "Investments that improve the overall performance and sustainability of agricultural and livestock farms", due to its financial weight, since it receives a significant percentage of the public expenditure of the Rural Development Programme 2014–2020, as well as because of its importance, since it aims directly at improving the competitiveness of agricultural products and improving technology and mechanisation of production on farms. It also aims at the modernization and environmental upgrading of pig farms, cattle farms, poultry farms/ poultry slaughterhouses and sheep and goat farms, by encouraging investments in the construction of infrastructure projects and proper environmental management.
The total budget for the second proclamation of the Scheme 4.1 is €30 million. Of which: • € 4 million concern Category A and small investments, • € 15 million Category B1 and investments in the sheep and goat sector and • € 11 million Category B2 and the other priority areas.
Category A - Small investments
Within the framework of measure 4.1, investments are foreseen in the area of Tylliria and in areas with an altitude of 400 metres or more. More specifically, it seeks to promote and encourage investments related to the restructuring of mandora, the cultivation of carob trees, smart agriculture, energy efficiency and RES investments, the circular economy, active protection systems and modern sustainable sustainable agricultural production techniques that have a favourable impact on the environment and the climate, which will contribute to making the agricultural sector more competitive, sustainable and sustainable.
The aid ceiling per applicant-holding, for the entire period of application of Scheme 4.1 in the Rural Development Programme 2014-2020, is €400,000 (€600,000 for young farmers participating in the Scheme 6.1).
Category B1- Investments in sheep and goat farms
Investments in sheep and goat farming are intended to restructure sheep and goat farming, as well as to increase the production of goat and sheep's milk. It should be noted that the simple fattening of sheep and goats as a productive sector is not eligible.
Eligible sectors are sheep and goat farming and arable crops (only as being directly linked to sheep and goat farming), but the purchase of buildings, the purchase of second-hand machinery and used equipment, the purchase of used machinery and second-hand equipment, the purchase and planting of single-year plants, the purchase of agricultural production rights, land, payment entitlements, animals, annual plants and their planting are not eligible for investment support; Value Added Tax (VAT) and farm labour as well as family work.
Category B1 covers applications with an aid amount of up to €300,000 (€400,000 for young farmers). The minimum investment amount has been set at €15,000 for the mountains and €30,000 for the rest of the regions.
Category B2 - Special purpose actions promoted
• Movement of intrusive premises (erection of new premises).
• Construction of Desalination Plants (Individual and Group), for own water consumption.
• Investments for infrastructure related to the Treatment and Management of Livestock Waste.
• Investments related to the sectors of rabbit breeding, mushroom cultivation, poultry farming, arable crops, beekeeping and expenses related to plantations of vegetables and fresh aromatic high-income plants in net gardens in areas with an altitude of 400 metres or more.
• Investments concerning the new entrant farmers of the Second Notice of measure 6.1.
• Investments concerning farmers affected by the fire that broke out on July 3rd and affected the 10 communities of the provinces of Larnaca and Limassol and other actions.
Measure to rehabilitate farmers from fires
This measure is characterized as one of the most important of the Rural Development Programme 2014 - 2020 and is applied for the restoration of agricultural production potential affected by natural disasters and catastrophic events. The measure was activated after the devastating fires that broke out in the summer of 2021, in order to contribute to the immediate support for the restoration of the agricultural potential of the affected farmers from the four fires that broke out on 16/6/2021 in the communities of Agia Marina Xyliatos and Platanistasa, on 26/06/2021 in the communities of Koili and Tala, on 3/7/2021 in the communities of Arakapa, Eptagonia, Akapnou, Dieronas, Odos, Oras, Melini, Sykopetra, Agioi Vavatsinias and Vavatsinias and on 19/09/2021 in the communities of Giolou, Simos, Drymos and Drynia.
The maximum total aid amount is set at €350,000 and the minimum investment amount is set at €500. In addition, the aid shall take into account and offset any other compensations paid to those affected which do not relate to the loss of income.
Aid for young farmers
Recognising the problem of ageing and non-renewal of generations of the rural population, the need to provide financial support to young people who wish to integrate and become active in the primary sector with viable farms becomes clear.
Measure 6.1 of the Rural Development Programme supports the first establishment of young farmers, ensuring in the long term the future of the agricultural profession and facilitating the entry of new entrants aged between 18 and 40 (including the 40th year), who wish to be active in the agricultural sector as heads/heads of farms.
The total amount to be made available under the second call for tenders of the measure amounts to €5 million.
A prerequisite for the participation of the beneficiaries in the measure is the submission, together with the application, of the business plan which will demonstrate an improvement in the initial situation. The business plan must be of a minimum duration of 3 years and a maximum of 4 years.
The first instalment is 60% of the total amount and the second and last instalment 40% of the total amount, after the proper implementation of the business plan.
