2024-09-17 13:56:29
The axes of the four measures for the primary sector, announced by the Prime Minister, Kyriakos Mitsotakis from TIF, were analyzed by the Minister of Rural Development and Food, Kostas Tsiaras, during an Interministerial Press Conference.
The aim of these measures, as underlined by Mr. Tsiaras, is “the reduction of production costs in the primary sector, freed from the burdens of the past, by stimulating extroversion where we can best while expanding the country’s production potential”.
He pointed out that through the measures it is sought “the further substitution of imports with domestic products, the strengthening of exports in products with a competitive advantage, the strengthening of domestic production, the creation of more jobs in the primary sector, the restructuring of production with high-value agri-food products and the “rebranding” of Greek products”.
Specifically, speaking about the Special Consumption Tax for Agricultural Oil, Mr. Tsiaras noted that it was abolished in 2016, and the government in the last three years has returned 50% of the Excise Tax, an amount that exceeds 250 million euros.
From 2025 onwards, as he said, it is planned to apply a zero rate of excise duty (EFFK) for diesel engine oil, which is used exclusively in agriculture. It was noted that the return of the mentioned EFC is inalienable and non-seizable by the State or third parties as well as not subject to any retention or set-off.
Beneficiaries of the measure will be 298,000 farmers by profession, while its objective is to reduce production costs through the establishment of a permanent refund mechanism of the Special Consumption Tax. It was noted that the relevant Joint Ministerial Decision will be issued after consultation with ETHEAS and Social Agencies.
Regarding measures for the red loans in the primary sector, Mr. Tsiaras emphasized that today these amount to a total of 3.8 billion euros, the burdens correspond to 26,000 properties (worth 1.5 billion euros), 750 Cooperatives and 21,000 farmers.
This measure aims to support cooperative schemes, strengthen sustainable cooperatives, direct access to new bank financing solutions, attract capital to the primary sector and sustainable agricultural loan arrangements.
Analyzing the mechanism, which will be created in collaboration with ETHEAS, Mr. Tsiaras said that it will include:
- New Arrangements/Compromise Payments Framework with significant write-off of debts on the basis of the accounting balance.
- Combined solution on old claims (debt cancellation solutions) with simultaneous new bank financing.
- Promoting synergies between sustainable Cooperatives
- Direct utilization of properties and leasing them in order to increase cash flows
- Promotion of Mergers – Spin-offs and unsustainable Corporate Transformations in general.
At the same time, as noted by the Minister of Rural Development and Food, there will be additional tools such as linking the Plan with innovative banking programs such as contract cards and special purpose working capital.
The implementation framework includes the detailed mapping of Cooperatives as well as the design of solutions. After transferring the existing non-performing agricultural loans to a new, strong and flexible scheme that will be created in partnership with the National Association of Agricultural Cooperatives (ETHEAS).
Commenting on greenhouse cultivation in our country, the Minister of Rural Development and Food pointed out that in Greece at the moment there are 49,000 acres of greenhouses, while in the Netherlands the areas amount to 120,000 acres.
The aim of the measure for the development of greenhouse crops in our country announced by the prime minister from TIF is to increase production, save 30% energy, reduce water consumption, create new jobs and protect the environment – saving natural resources.
As far as it is concerned in financial instrumentsthe action’s budget amounts to 600 million euros. Of these, 50% will come from the RDP, 35% from bank loans and 15% from equity. It was noted that in areas affected by natural disasters and in the North Aegean the aid rate is increased by 10%.
Beneficiaries will be natural and legal persons, but also collective forms of agricultural cooperative law (producer groups, producer organizations, agricultural cooperatives and their associations, except those financed by another Sectoral Program).
Finally, referring to the YPAAT idle land exchange and compensation plan, according to data presented by Mr. Tsiaras, the situation today is as follows:
Residential file (estimated – mainly unused after expropriations):
- Forests: 2.448 million hectares
- Pasture, Grassland & fallow: 7.335 million acres
- Fields, groves, other: 1.799 million acres
The aim of the plan is to utilize the inactive lands of the HYPAAT for agricultural use for developmental and social reasons.
According to the competent minister, the whole process provides for the updating of N4061/12 with:
- Modernization of the institutional framework for the management of the Ministry’s properties
- Clarification of responsibilities for the management and protection of said lands
- Resolve pending issues related to ownership issues as well as land use change issues
- Removal of bureaucratic obstacles to the establishment or transfer of real rights in private lands.
- Creation of a Working Group in collaboration with the Ministry of Digital Governance for the complete mapping of available lands.
“In this way, the main axes are described through which the Ministry of Rural Development and Food introduces specific options, so that the primary sector offers more both to the national economy and to societies,” Mr. Tsiaras said in closing.
Data for the primary domain
At the start of his appointment, the Minister of Rural Development and Food spoke about the situation that prevailed in 2019 in the primary sector of our country and presented data on how it was shaped in 2023.
Specifically, in 2019 the deficit in the balance of agricultural products reached 731,216,078 euros, while in 2023 a surplus of 452,610,528 euros was achieved.
Fruit and vegetable exports in 2019 reached 2.2 billion euros, while in 2023 they amount to 3.2 billion euros. The main destinations of Greek exports are
Italy (18.6% of exports), Germany (11.3%), the USA (6%), Spain (5.3%) and the United Kingdom (4.9%).
As far as meat imports are concerned, from 1.2 billion euros in 2019 they reached 1.6 billion euros in 2023.
Mr. Tsiaras noted that in 2020, 412,000 people were employed in the primary sector (agriculture, forestry, fishing), while in 2023 they now amount to 480,900 people.
Finally, the increase of young men (20-29) employed in the primary sector is significant, since in 2020 there were 21,700 and in 2023 35,300. The same applies to women, where from 159,600 in 2020 they reached 176,000 in 2023. “Around 25,000 new jobs have been created in plant and animal production alone,” said Mr. Tsiaras.