The Romanian government is launching a tractor purchase support program for farmers

By: STA Date: 2024. 05. 30. 10:30

The Bucharest government is launching a program to support the purchase of new tractors aimed at renewing Romania’s agricultural machinery fleet, the cabinet adopted a decision on Thursday to set aside a 500 million lei (38 billion HUF) financial framework for this purpose.

(Photo: Pixabay)

Prime Minister Marcel Ciolacu announced at the government meeting: the program aimed at replacing agricultural “wrecks” is financed from the Environmental Protection Fund (AFM), and the program also helps domestic tractor production and farmers. The subsidy that can be used for the purchase of a new tractor (or other agricultural machine) can reach up to 20,000 euros, and according to the Prime Minister, applicants will be able to apply for the subsidy with “minimum bureaucracy”.

Based on the government decision adopted on Thursday, the application conditions will be clarified by the decree of the Minister of Environment Protection within 30 days

Laurentiu Neculaescu, the president of the AFM, announced to the agrointel.ro portal on Wednesday: the purchase of tractors worth up to 55,000 euros will be supported and the farmers will also have to make a contribution. The amount of state support will vary from county to county, and its parameters will be determined by the competition council. Farmers will have to hand in an old machine to the scrap yard in order to obtain a voucher that can be used to buy a tractor. “Not necessarily the old tractor, because it might still be useful. An old Dacia will also do,” explained the president of the AFM. The government promised the introduction of the tractor purchase subsidy during the farmers’ demonstrations in January. At that time, Minister of Environment Mircea Fechet offered support of 30,000 euros per enterprise (per farm).

The new “scrap tractor” program was announced by the Bucharest government on the model of the “scrap car” program, with which the Ministry of Environment supports the replacement of old, polluting cars and their removal from traffic. Between 2018 and 2022, more than 327,000 used cars were taken off the road thanks to government-funded scrappage programs. In the scrap car program, those who surrender a vehicle older than 15 years but still in working order receive state support for the purchase of new cars.

MTI