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AGRICULTURAL SUBSIDIZING POLICY AND ITS EFFICIENCY: THE CASE OF MOLDOVA

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Author(s): Liliana CIMPOIES

Journal: Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development
ISSN 2284-7995

Volume: 12;
Issue: 4;
Start page: 33;
Date: 2012;

Keywords: agriculture | Republic of Moldova | subsidies | subsidizing policy

ABSTRACT
The paper is aimed at analyzing the subsidizing directions, the allocation of subsidies to farmers and its efficiency on farm development in Moldova. For the given study were used data from the Ministry of Agriculture and Food Industry of Moldova, Agency of Interventions and Payments in Agriculture, National Bureau of Statistics, as well as collected data from corporate farms. The data have been analyzed during the years 2006-2011 concerning the main subsidized directions and geographical distribution of subsidies across the country, the access of farmers to the allocated subsidies. In order to establish the efficiency of the allocated subsidies was used the average data for the year 2008-2010 to calculate its impact on the main indicators per hectare as: the gross agricultural output, profit and level of profitability. As a conclusion, is still missing a clear and consistent policy that could be implemented through the allocation of subsidies. The allocated subsidies follow some objectives aimed at the development of the agricultural sector and do not have a stable character, by changing each year, fact that does not allow farmers to forecast their production activity.
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