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GOVT. FORMULATES SHORT-TERM MEASURES TO HELP FARMERS

*ZAGREB, May 15 (Hina) - The Croatian government on Thursday formulated short-term measures to help farmers hit by recent droughts, however, concrete figures were not mentioned.
*ZAGREB, May 15 (Hina) - The Croatian government on Thursday formulated short-term measures to help farmers hit by recent droughts, however, concrete figures were not mentioned. #L# The government entrusted the ministries of agriculture and finance to devise a model of partial compensation for damage caused by the drought, including the amount and source of the funds. Agriculture Minister Bozidar Pankretic recalled that droughts hit a number of counties, especially those in Slavonia, however, their actual consequences would be known only after competent commissions established the situation in the field. The scope of the drought is disastrous, damage is extensive, which makes the request not to exaggerate and speculate about the damage reasonable, said Prime Minister Ivica Racan. The government will exempt recipients of farming incentives from the obligation to prove minimum yields for bread wheat, brewer's barley, oil crops, soy and sugar beet. It will also exempt the users of state-owned land from paying land usage fees in the part that is paid to the state (25%) and calls on counties and municipalities to do the same. The users of loans from ministry funds were granted a year-long grace without the calculation of regular interest, and business banks were urged to do the same. The company Croatian Waters was entrusted with writing off water bills for 2003. The Agriculture Ministry is to encourage the procurement of watering equipment and equipment for protection against frost and hale through its loan programmes and capital investment models. The government should discuss tax benefits for farmers next week. Damage from the drought also opened a discussion on other problems in the farming sector. Racan warned about neglected watering canals, the insufficient number of insured farmers, lack of progress in land amelioration in the past 15 years, and the slow change of farming structures, which he said was the reason why the country lacked its own fruit and vegetables. (hina) rml

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