STA, 20 August 2022 - The government has decided to subsidise agricultural reproductive material to help farmers overcome the high cost of energy. Some 43,000 farms will be eligible for a total of EUR 15 million funds earmarked at a correspondence session Friday evening.
Adopted as part of the measures to address growing food prices, the move aims to lower food production costs in primary agricultural production.
The war in Ukraine is having severe effects on the agricultural sector, as high energy prices are driving up the production costs, including through increasingly more expensive reproduction materials, such as fertilisers, the Ministry of Agriculture and Food said last night.
Agricultural Institute data shows that production cost for a hectare of wheat has grown from EUR 578 last year to EUR 937, according to preliminary data for this year.
Similar hikes are being reported for other crops. The increase is lower only in some permanent crops. The main reason for this are hikes in fertiliser prices, which had already gone up at the end of 2021 and continued to grow heavily in 2022.
The government earmarked EUR 15 million for the measure. Based on surface area data and other documentation, the ministry believes some 43,000 farms will be eligible for the funds.