Generous funds from the Ministry of Rural Development for the next day

The amount that will «bridge» the gap between today and the post-COVID era totals 800 million euros, funds that will be directed toward the development and transformation of the Greek agricultural economy and are included in the National Recovery Plan.

«In practice, the 800 million euros is actually much more, since it will either serve as the basis for public-private partnerships (PPPs) or will leverage much larger investments,» officials from the Ministry of Rural Development and Food told the Athens-Macedonian News Agency.

It is noteworthy that while the National Recovery Plan allocates 200 million euros for irrigation projects through PPPs, it is estimated that the budget for the projects that will ultimately be carried out will reach 750 million euros.

«The current estimate is that the funds allocated to the agri-food sector under the National Recovery Plan are not limited to the 800 million euros that have been directly budgeted,» but, as the same officials noted, «much more—perhaps even over 2 billion—since measures related to the agri-food sector are also included in other sectors, primarily that of the green transition, and are expected to generate leverage of more than 1 billion euros, as at least another 1 billion euros will be mobilized from the private sector.».

In addition to the 800 million of the National Recovery Plan, the 1.6 billion euros from the Rural Development Program (RDP), as it complements the National Recovery Plan by funding projects selected in line with the «Green Deal» and digital transformation.

According to officials at the Ministry of Agriculture, Rural Development, and Food, however, «the government’s intention is for large-scale investment projects to be supported through grants rather than loans, a fact that, if it ultimately comes to pass—particularly in the primary sector—will contribute decisively to the sustainability and development of new investments.».

What Does the National Recovery Plan Envision?

The National Recovery Plan announced a few days ago by Prime Minister Kyriakos Mitsotakis focuses on projects that fall within the framework of the “Green Deal” and contribute to the digital transformation of the Greek agricultural economy.

The main areas of focus for the projects—which will subsequently be categorized by the Ministry of Rural Development and Food—are as follows:

– Irrigation Projects Program under a Public-Private Partnership (PPP) to Boost Agricultural Production – Investment of 200 million euros

Major investments in irrigation networks and systems (construction and modernization of dams, irrigation networks, reservoirs, etc.) in collaboration with the private sector (public-private partnerships), in order to increase the area under irrigation and, consequently, agricultural production, while ensuring smart management of water resources and conservation of available water reserves.

The total budget for the projects amounts to 750 million euros, and the goal is to increase the competitiveness of the agri-food sector, agricultural income, and to create new jobs during the construction and subsequent maintenance of the projects.

– Transformation of the Agricultural Sector – Investment of 520 million euros

Promotion of financial support programs for the agri-food sector to facilitate investments focused on green agriculture and precision agriculture, with an emphasis on co-financing (average co-financing rate of 50%) and prioritizing both horizontal collaborations (at the primary sector level) as well as vertical partnerships involving clusters, which can bring together businesses and cooperative structures from the primary, secondary, and tertiary sectors with the aim of fostering innovation and outward-looking growth. This also includes contract farming.

The programs focus, among other things, on innovation and the eco-friendly processing of agricultural products, the modernization of the primary sector, crop restructuring, and animal breeding.

The goal of these investments is to improve the quality and added value of products, as well as to increase agricultural and livestock production and exports.

– Digital Transformation of the Agri-Food Sector – Investment of 47 million euros

The National Recovery Plan also includes the creation of a technological platform and infrastructure to support the modernization of agriculture, which will serve as the central pillar for the implementationof policies (both national and European) aimed at the digital transformation of the agricultural sector.

Included are:

(a) Support for export activities (a platform that facilitates the issuance of certificates required for exports, a Business Intelligence system for imports and exports, and a portal for promoting Greek agricultural products),

(b) The procurement and development of technological equipment useful for supporting the primary sector (X-band meteorological radar, telemetry and remote-control stations, Unmanned Aerial Vehicle Systems, high-resolution satellite imagery, and infrastructure for its analysis, etc.) and

(c) The development of integrated information systems (for the new CAP, for agricultural product insurance, a Management Information System for irrigation issues, etc.).

– Support for Aquaculture – Investment of 35 million euros

Supporting the modernization of aquaculture production and the diversification of production, with grants covering, among other things, innovative equipment solutions, research, know-how transfer, and workforce training.

In addition, plans call for the creation of a genetic resource bank for endangered species and commercially important freshwater fish species.

The goal is to increase productivity, reduce production costs, and boost exports of the sector’s products and the number of jobs it creates.

The… 19-billion “super-weapon” of the new CAP

In its plan, the Ministry of Rural Development and Food has also included funds from the New Common Agricultural Policy (CAP), which total more than 19 billion euros.

In fact, as the minister in charge, Spilios Livanos, «Greece’s goal is to conclude, as soon as possible, the discussions and reach an agreement on the new CAP (Common Agricultural Policy). A new, sustainable CAP; a new, green CAP; a new CAP that will support Greek farmers, that will provide Greek farmers with the tools for growth and sustainability, and that will add value to our exceptional Greek products. Greek farmers have suffered significant losses due to the pandemic and natural disasters, and, as a result, they cannot—and must not—wait any longer.».

The funds allocated to Greece under the new CAP for the 2021–2027 period total 19,362.60 billion euros, broken down as follows:

– Direct payments (Pillar I): 14,529.60 billion euros

– Rural development (excluding the Recovery Fund): 4,021.90 billion euros

– Rural Development Recovery Fund: 371.10 million.

-Market measures (Pillar I: beekeeping, wine, olive oil, and the Small Aegean Islands): 440 million euros.

LEADER

Finally, in its planning, the ministry also takes into account investments that fall under the LEADER program, and investments in agritourism are planned. It should be noted that 260 million is earmarked for this specific sector under the LEADER program, and a similar amount is expected to be mobilized from the private sector.

Th. Papakostas