Grants for farmers and small and medium-sized enterprises affected by the COVID-19 crisis

The Ministry of Agriculture, Food and Forestry has announced the launch of a new measure to support farmers and small and medium-sized enterprises. The new measure 21 is called 'Extraordinary temporary support for farmers and small and medium-sized enterprises particularly affected by the crisis caused by COVID-19' and will be funded by the Rural Development Programme 2014-2020, co-financed by the European Agricultural Fund for Rural Development (EAFRD).

The financial aid is gratuitous, to be paid at once and maximum at €7 000 per farmer.  

The measure is aimed at ensuring the competitiveness of agriculture and the viability of agricultural holdings, ensuring the continuity of agricultural activities and the activity of small enterprises engaged in the processing, marketing or development of agricultural products, and safeguarding the health of those employed in agriculture.

The grant measure is divided into three sub-measures covering different sectors concerned, namely: sub-measure 21. 1, which concerns farmers active in the “Crop production” sector, in particular producers of fruit, outdoor vegetables, greenhouse vegetables, oil-bearing roses, vines, ornamental plants, “Livestock production” (cattle, buffalo, sheep and goats) and/or “Beekeeping” ”, sub-measure 21. 2 “Extraordinary temporary support for farmers COVID 2” - for farmers active in the 'Crop production' sector in all other areas not covered by sub-measure 21.1 and/or the “Livestock” sector (pigs and poultry) and sub-measure 21.3 - for micro, small and medium-sized enterprises processing agricultural products and recognized producer groups and organizations. Sub-measure 21.2 has a budget of BGN 93 500 000, BGN 5 500 000 will be allocated to sub-measure 21.2 and BGN 5 500 000 to sub-measure 21.3. To the question whether the sub-measures can be combined and aid can be granted in combination, the answer is that it is not possible, as financial aid is granted under only one of them.

There is no information yet on when the application procedure under sub-measure 21.3, will be opened, but the reception of applications for support under the first two sub-measures will start on 19th of August and will continue until 21st of September 2020, inclusive. Eligible applicants must meet the conditions laid down in Ordinance № 2 of the Ministry of Agriculture, Food and Forestry from 10th of August 2020. Producers applying under the first sub-measure must be farmers registered under Ordinance № 3 from 1999 for establishing and maintaining a register of farmers and meet at least one of the following conditions: to have applied for support under the direct payment schemes in the 2019 and 2020 Campaign; to have applied for and been approved for de minimis state aid to support beekeepers in 2019 or to be beneficiaries with an existing contract/commitment or approved application under the 2014-2020 RDP measures. The amount of the funds to be granted to each applicant is determined according to the sector in which the farmer falls - in the crop sector it is according to the established eligible area, the conditions; in the livestock sector it is according to the number of animals of the relevant species that are identified as eligible and for the beekeeping sector - according to the number of established eligible bee colonies.

Farmers under sub-measure 21.2 will be considered eligible if they are registered under Ordinance № 3 from 1999 and have applied for support under the direct payment schemes in the 2019 and 2020 Campaign and are beneficiaries with an existing contract/commitment under the 2014-2020 Rural Development Programme measures. It is important to note that pig and poultry farmers are eligible if they have applied and been approved for State aid in 2019 under the Aid for the implementation of voluntary welfare commitments scheme and/or the Aid for the implementation of voluntary welfare commitments scheme. The funds to be made available under this sub-measure will be determined on the basis of the average number of staff for the period March to June 2020 as provided by the NRA. It is important to underline that in case there are recorded outbreaks of contagious diseases on pig and poultry holdings, no aid will be granted to these holdings. The amount of the aid will be 30 BGN per person for applicants who farm crops, 245 BGN per person for applicants who farm pigs and 430 BGN per person for applicants who farm poultry. A farmer may receive support for more than one of the activities listed in the relevant sub-measure, up to a maximum of EUR 7 000.

If you decide to benefit from financial assistance under Measure 21, the KGK Law Firm team can assist you with your application at any stage of the procedure.