ZAGREB, July 11 (Hina) - The Croatian parliament on Thursday adopted with the majority of votes a law on state subsidies for farming, fishery, and forestry.
ZAGREB, July 11 (Hina) - The Croatian parliament on Thursday
adopted with the majority of votes a law on state subsidies for
farming, fishery, and forestry. #L#
The law includes a government amendment deferring its going into
force until January 1, 2003.
The law increases the highest annual subsidy from a million and a
half to two million kuna.
The government believes that the new system of farming and fishery
subsidies will enable the accomplishment of many goals of the
agricultural policy as well as positively affect the entire
economy.
Under the law, farms are divided into commercial ones, producing
for the market, and non-commercial ones.
Subsidies are divided into four categories - the first model is very
similar to the existing one, the second is intended for households
run by elderly people, the third is oriented to commercial
producers, and the fourth is intended for rural development.
The law also envisages incentives for the production of hop and
almost all vegetables (and not only those intended for processing),
as well as subsidies for farming seed. Subsidies for cow milk are
increased, however, the law also introduces new milk quality
standards.
The new system of subsidies should reduce abuse, while the
obligatory inclusion of commercial farmers into the VAT system is
expected to help fight grey economy.
(hina) rml