Cooperation of small farmers: for which activities up to 90 thousand. euros

The uniqueness of this measure is that at least two partners can apply: small farmers in rural areas, small forest managers, micro-enterprises and individuals who agree to work together and invest in such activities. They can get 90 thousand. support for the implementation of a project.

In total, more than 2.3 million euros have been allocated to this application phase. European Agricultural Fund for Rural Development and budget of Lithuania.

Facilitates work and strengthens

The measure, which has been in place since 2016, encourages an increasing number of small farmers, foresters and small entrepreneurs in rural areas to join forces and request support for joint investments.

According to Nomeda Padvaiskaitė, Chief Specialist of the 2nd European Union Support Division of the Ministry of Agriculture (MoA), small economic entities are increasingly taking advantage of the opportunity to receive support for cooperation and jointly implement joint projects.

“It is not for nothing that it is said that where there are two, there are more benefits, because that cooperation not only makes work easier, but also helps small farms to become stronger and more competitive,” emphasized the representative of the Ministry of Agriculture.

Try new activities

The opportunity to seize 2014-2020 Two brothers Almantas and Mindaugas Šedžiai from the Rokiškis district were attracted by the funding of the activity area “Cooperation” from the PDR measure “Support for cooperation of small economic entities”. They developed a project for the development of beef cattle farms, the implementation of which was supported.

The brothers have already purchased a much-needed articulated loader, a baler-baler, and a grain crusher at the cattle farm.

“Since spring, we are testing new activities, buying calves, which we will fatten up to the required sales weight. It takes at least a year and a half to grow them. We buy calves in our country, when their export ceased, the purchase prices fell, but buyers also pay less for the bred bulls, ”said A.Šedys.

He said the volume of new activity is not great yet. “You cannot expand much immediately, you have to calculate and evaluate the profitability,” said the farmer.

The brothers readily accepted

A.Šedys made no secret that the support provided to the cooperation of small farmers is very necessary and useful. He said it was not difficult to agree with the brother to apply together. According to Rokiškėnas, there are no difficulties for them and share the purchased equipment with support funds.

“We work and plan together, we develop activities in the same direction, so that there are no problems,” said the farmer.

However, he acknowledged that Lithuanian farmers are still not very willing to work together. “After all, cooperation is hard to come by. Apparently, this is still influenced by the legacy of Soviet collectivization,” commented A. Šedys.

According to the farmer, it would be worthwhile for our farmers to learn from Western colleagues who know how to agree and work together.

Neighbors also decided to cooperate

The Chief Specialist of the 2nd Division of Support to the European Union of the Ministry of Agriculture recognized that it is not easy to get small farmers not to cooperate. “However, although timidly, good examples attract farmers to cooperate, and the fruits of the ministry’s work to encourage farmers to cooperate are already paying off: they get better every year. The previous submission of applications was the best, already that more applications were received than the funds allocated for the call, ”said N. Padvaiskaitė, adding that the results are also affected by the fact that the conditions for receiving support are getting better and better.

The representative of the Ministry of Agriculture noted that so far family members have facilitated the implementation of the joint project. However, there are already several examples of good friends or neighbors working together; Farmers already realize that joining forces with strangers is key to increasing the competitiveness of their farms.

Support intensity: 60 to 100 percent.

According to 2014-2020 The scope of activity of the PDR measure “Cooperation” “Support for cooperation of small economic entities” supports the joint work processes of small farmers, small forest managers, micro-enterprises and individuals operating in rural areas sharing equipment and resources, carrying out joint economic, commercial and environmental activities.

Up to 90 thousand LTL can be assigned for the implementation of a project. and the maximum amount of aid per beneficiary for 2014-2020. may not exceed 200 thousand. euros.

The intensity of the support depends on the costs incurred: the general costs of the project are financed at 100%, the costs of implementing the business plan at 60%, and in cases where the business plan is implemented by small farmers in the livestock, horticulture, berries and horticulture sectors. . all eligible costs of the business plan.

Small farmers can acquire new agricultural machinery and equipment related to the production of agricultural products, new technological equipment, computers and software for the project. Additionally, compensation is available for the construction, reconstruction or overhaul of new farm buildings.

Support is also provided for on-site infrastructure project development, new deforestation, roundwood and biofuel harvesting machinery and equipment (excluding road transport machinery), soil preparation for forest / vegetation plantation mechanisms , advertising and general costs.

It is important to have the same economic activity

The representatives of the Ministry of Agriculture remind that applicants can submit applications and carry out cooperation activities only with partners who are engaged in the same economic activity, that is, farmers with farmers, foresters with foresters, operators who carry out alternative activities with entities dedicated to alternative activities, according to the same economic activity, that is, a project cannot foresee several different alternative economic activities. Please note that no new activities can be included during project implementation.

It should be noted that the partner of the applicant cannot be a legal person constituted by the applicant himself, as well as a legal person in whose management the applicant participates.

The application must identify the partners and be accompanied by a joint venture agreement.

Requests for support are collected in the territorial support administration divisions of the Department of Rural Development and Regional Support of the National Payment Agency.