PRAGUE - Agriculture Minister Marek Výborný (KDU-ČSL) today approved the rules for granting subsidies for rural development under the strategic plan of the Common Agricultural Policy (CAP). In the autumn 4th round of receiving applications, farmers and forest owners can receive a contribution from the total amount of CZK 6.3 billion for investments in agricultural holdings, for processing products, for restoring forests after calamities or for starting up a young farmer.
"We are focusing mainly on medium-sized agricultural enterprises, which should be able to access the subsidies better. Farmers farming 150 to 2 500 hectares of fields will get a preferential advantage in the allocation of subsidies. Small and family farms will also receive greater preference. When assessing the size of a holding, interconnectedness will be strictly checked, i.e. whether the holding is part of a group of several interconnected holdings, for example," said Agriculture Minister Marek Výborný.
In the 4th round of applications, approximately CZK 6.3 billion will be distributed, which will be directed in particular to investments in agricultural and food processing enterprises, the start-up of young farmers, forestry - specifically the restoration of calamity areas and the protection of ameliorative and strengthening trees, as well as to support innovation and cooperation projects.
"We are continuing the trend of simplifying and speeding up administration. Applicants will no longer have to provide the so-called conformity assessment, i.e. documentation from the manufacturer, which will make life easier, especially for applicants purchasing smaller equipment. We have already abolished the obligation to provide proof of debt-free status from the tax office. Well-prepared projects will then be administered more quickly," he said. Minister of Agriculture Marek Výborný
The Ministry of Agriculture (MoA) will allocate the most to Investments in agricultural holdings, a total of CZK 3 billion. Farmers will receive a subsidy of at least 40 % of the costs incurred, young farmers starting out will receive an additional 10 % and organic farmers will also receive 10 %. Thus, the maximum amount a new organic farmer can receive is 60 %. Under this intervention, farmers can now receive a welfare allowance for sows. In addition to the already established support for poultry welfare, this is a further step towards improving animal welfare, and farmers will be able to purchase, for example, free-range sheds for laying hens or free-range farrowing pens for sows. In crop production, preference points will be given to growers of sensitive commodities such as fruit, vegetables, hops or ornamental and medicinal plants. The MoA will give preference to precision farming projects, such as the acquisition of satellite navigation for agricultural machinery, equipment for precise dosing of fertilisers and seeds, robotic technology for stables and fields. When considering the award of subsidies, priority will be given to smaller projects, processing of own production, projects focusing on welfare, sensitive commodities or reducing emissions.
At Investments in the processing of agricultural products is estimated at CZK 2.2 billion. The aim is to support the processing of agricultural products and their direct sale. The main target group is small and medium-sized enterprises. Large ones can only apply for subsidies if their project contributes to mitigating climate change. The basic subsidy rate is 30 % and can be increased by 10 % for young start-up farmers and 10 % for micro and small enterprises. The maximum rate of support is therefore 50 % of eligible expenditure, for example for the purchase of equipment for food and feed production, for storage and renovation of buildings and shop equipment.
"There are limits on investment in farms and the processing of agricultural products. Thus, an applicant can receive a maximum of CZK 30 million for a single project and a maximum of CZK 200 million for the entire programming period until 2027 and for all its projects," said Agriculture Minister Výborný.
O Investments in the restoration of calamity areas any forest management entity, including state-owned enterprises, can apply. It will receive the 100% grant for forest restoration after fire, drought, wind calamity, icing or pest damage. However, the intervention is also aimed at prevention; during restoration, the forester will have to plant more ameliorative and strengthening trees, which will help the forest to better withstand any future calamity. A total of CZK 107 million is earmarked for the intervention.
Intervention will help with the construction of fences to protect newly planted forest from game Investment in the protection of ameliorative and reinforcing trees. It is intended for the construction of wooden and wire fencing, with preference given to wooden fencing for sustainability. The subsidy rate is again 100 %, the total amount for subsidies is almost 25 million.
Starting up as a young farmer helps generational renewal in agriculture, helps to attract and retain young people in the sector and make it easier for them to start their own businesses. The contribution will make it easier for people aged between 18 and 40 to start a business, contributing to the implementation of a business plan. Here again, the MoA has simplified the conditions in Round 4 compared to previous rounds and removed bureaucratic obstacles. In particular, the period for which an applicant is considered to be starting up has been extended from 24 months to 5 years from the start of his/her agricultural business. The obligation to organise a tendering procedure for contractors has been abolished and certain conditions on the content of the business plan have been relaxed. A total of CZK 708 million is available for this intervention.
Up to 60 % of the costs can be obtained with the help of a grant by applicants for the necessary cooperation with a research body in putting into practice innovations in the processing of agricultural products under the intervention Innovation in the processing of agricultural products. These are projects that introduce new or significantly improved products, processes or technologies.
Also Support for operational groups and EIP projects (European Innovation Partnership) with a subsidy incentive of CZK 130 million will contribute to the introduction of innovations into practice. The model is based on practice, with a group of entrepreneurs, scientists and researchers, as well as non-governmental non-profit organisations working on the project. The results of the projects are then applied at national and European level.
For each intervention, the money is provisionally allocated as follows:
Intervention | Allocation (CZK) |
Investments in agricultural holdings | 3 000 000 000 |
Investments in the processing of agricultural products | 2 235 000 000 |
Investments in the restoration of calamity areas | 107 888 397 |
Investments in the protection of ameliorative and reinforcing trees | 24 962 882 |
Starting up as a young farmer | 708 324 445 |
Innovation in the processing of agricultural products | 100 776 000 |
Support for operational groups and EIP projects | 130 000 000 |
Total | 6 306 951 724 |
The final amount may be adjusted according to current exchange rate conversions, the state of implementation of the financial plan, or may be increased by any unspent funds from previous application rounds.
Applications will only be accepted through the Farmer Portal from 8 October 2024 at 8:00 a.m. until 29 October 2024 at 6:00 p.m.
The full text of the Rules is available in electronic form on the website of the Ministry of Agriculture - Subportal Subsidies - CAP Strategic Plan 2023-2027 a relevant interventions) and also on the website State Agricultural Intervention Fund in the Strategic Plan 2023-2027 section.
Vojtěch Bílý
Spokesman of the Ministry of Agriculture of the Czech Republic
mze.gov.cz/gnews.cz