An analysis of farm support measures in the Republic of Moldova

Judith Möllers, Thomas Herzfeld, Lucia Batereanu and Arjola Arapi-Gjini

No 199, IAMO Discussion Papers from Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: In the Republic of Moldova, agricultural policies aim to increase the competitiveness of its farming sector, ensure the sustainable management of its natural resources and improve the living standards in rural areas. The state is an important player, allocating financial resources for supporting agriculture and carrying out investment projects in this field. A post-investment subsidy program incentivises agricultural producers to modernise their farms and production. Farmers who have made investments in developing production and post-harvest infrastructure could benefit from subsidies for these investments and financial resources allocated by the Agency for Intervention and Payments in Agriculture. However, it is not clear how beneficial these subsidies are for agricultural producers and whether the goals formulated by policies are met. A critical challenge of policy assessment is the lack of regular surveys gathering farm-level data in Moldova. Another challenge is that the impact of some investments can only be quantified with a delay of several years. This report results from an impact assessment study analysing the effectiveness of existing policy measures. A survey of 800 farms was carried out to realise this assessment, which provided information about the activity and investments made over several years. The team of researchers analysed the collected data to evaluate the policy measures covered by the survey. The study highlights essential facilitators and barriers to the farms' agricultural investment and business activity. The impact assessment underlined that the investment subsidies had measurable positive effects on labour, farm production and economic success. At the same time, it indicated directions for improving and rebalancing policy instruments to increase the competitiveness and sustainability of the agricultural sector of the Republic of Moldova.

Keywords: Moldova; farm subsidies; agricultural policies; impact assessment (search for similar items in EconPapers)
Date: 2025, Revised 2025
New Economics Papers: this item is included in nep-agr and nep-cis
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Related works:
Working Paper: An analysis of farm support measures in the Republic of Moldova (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iamodp:199

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