The Ministry of Agriculture and Rural Development is passing around for comments a draft paper on policies to encourage association between farmers and enterprises under the large-scale farming model.
Once approved, the draft paper would replace Prime Minister Decision No. 80 of 2002 on incentives to stimulate the contractual sale and purchase of farm produce which is no longer suitable after the country officially joined the World Trade Organization.
Under the draft, enterprises engaged in agricultural production after the large-scale farming model would be eligible for a raft of incentives, including financial supports for agricultural extension and vocational training for farmers. They may also borrow soft loans to purchase agricultural products under contracts signed with farmers or under farm produce stockpiling plans assigned by the Government.
Cooperatives would be entitled to 100-per cent support of training expenses to improve their managerial capacity and an initial aid of 50 per cent of costs for building warehouses and acquiring equipment for farm produce preservation.
Meanwhile, farmers joining the model would be funded half of costs for plant protection drugs and another 50-per cent support for seedlings in the first crop.