ISSN 2284-7995, ISSN Online 2285-3952
 

AGRICULTURAL SUBSIDIZING SYSTEM AND ITS EFFICIENCY: EVIDENCE FROM MOLDOVA

Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 12, Issue 3
Written by Liliana CIMPOIES

The paper is aimed to present the evolution of the allocated subsidies in the Republic of Moldova towards different subsidizing directions and an analysis of its efficiency. The data used in the analysis were provided by the Agency of Interventions and Payments in Agriculture, National Bureau of Statistics, as well as own carried research concerning the activity of agricultural enterprises. The data have been processed towards the subsidized directions in the last years, and had been analyzed the allocation of subsidies per hectare to different groups of agricultural enterprises by the following indicators: gross agricultural product per ha, profit per ha, level of profitability, as well as by regions. During the analyzed period, the amount of allocated subsidies had increased. The allocated amount of subsidies to the agricultural enterprises demonstrates that in 2008-2010 only 214 of them received a subsidy higher than 650 lei per ha allowing them to obtain a profit of 1845 lei per ha and a level of profitability of 35%. As well, in 2012 have decreased the number of subsidized directions comparing to the previous year, being excluded some of the directions, as the subsidizing the purchasing of fertilizers and plant protection materials which are needed in the adverse weather conditions (as the drought from the fall of 2011 and winter frosts in 2012). As a conclusion, the subsidizing policy is needed for the development of the agricultural sector and therefore it should make incentives for the efficient enterprises activities, and as a result for the whole efficiency of the agricultural sector.

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© 2019 To be cited: Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development“.

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