Support for the setting up of young farmers | National Paying Agency | Support for agriculture and rural development
National Paying Agency under the Ministry of Agriculture of the Republic of Lithuania

FAQ

Support for the setting up of young farmers

QUESTION: Do I qualify for the measure “Economic and Business Development”, area of activity “Support for the setting up of young farmers”, if my farm was established 4 years ago?
 
ANSWER: According to the rules of the implementation of the measure “Economic and Business Development”, area of activity “Support for the setting up of young farmers” 2019, the applicant’s farm and holding shall have been registered not earlier than 2 years before the submission of an application for support. If the applicant’s agricultural holding and a farmer’s farm has been registered earlier than 2 years before the date of submission of an application for support, the applicant shall not be eligible for support.
 
 
QUESTION: Will additional selection points awarded under the measure “Support for the setting up of young farmers” for agricultural land personally owned by a spouse which has been a part of the applicant’s holding?
 
ANSWER: Please be informed that the rules of the implementation of the measure “Economic and Business Development”, area of activity “Support for the setting up of young farmers” of the Lithuanian Rural Development Programme 2014–2020 applicable since 2019, approved by Order No. 3D-309 of the Minister of Agriculture of the Republic of Lithuania of 21 May 2019 (current consolidated version as of 16 May 2020) states that selection points shall be awarded only if the applicant himself has more hectares of agricultural land owned under the right of ownership included in his holding at the time of filing an application for support, which he undertakes to maintain until the end of the business plan control period. It should be noted that selection points shall not be awarded for agricultural land, which is owned by the applicant’s spouse and which has been included as a part of the applicant’s holding.
 
 
QUESTION: Is the applicant who has planted peas or beans on his holding, which are planned to generate more than 50% of the total income of the farm considered a horticultural farm? Would it be awarded additional 15 points?
 
ANSWER: Please be informed that the currently valid rules of the implementation of the measure “Economic and Business Development” (hereinafter – the Measure), area of activity “Support for the setting up of young farmers” of the Lithuanian Rural Development Programme 2014–2020 (hereinafter – the Programme) applicable since 2019, approved by Order No. 3D-309 of the Minister of Agriculture of the Republic of Lithuania of 21 May 2019 (current consolidated version as of 16 May 2020) states that the type of product produced / grown (vegetable / berry / fruit, etc.) and the sector, respectively, may be determined in accordance with Annex I to the Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature (hereinafter – the Nomenclature) and on the Common Customs Tariff, the list of normative prices of biological assets and agricultural products for 2020 approved by Order No. 3D-731 of the Minister of Agriculture of the Republic of Lithuania of 30 December 2019 and the Classification of Economic Activities, approved by Order No DĮ-226 of the Director General of Statistics Lithuania under the Government of the Republic of Lithuania of 31 October 2007 “On the Approval of the Classification of Economic Activities”.
 
Please note that pursuant to the Nomenclature, the applicant himself shall indicate in his application the agricultural sector where he plans to invest. Please note that the above-mentioned plants (peas and beans) fall under part 7 of Annex I - Edible vegetables and certain roots and tubers.
 
Please also be informed that this legal act does not make it clear which specific sector a certain specific plant should be assigned to; the entire project, its justification, investments, specifics of activities should be taken into consideration, and the applicant shall specify the sector closest to the specifics of the area of his activity. Thus, each case should be considered on its own merits, taking into account all the circumstances.
 
Please also note that in accordance with sub-clause 30.2.3 of the Rules, an additional 15 points could be awarded to an applicant, who establishes a horticultural, berry or a gardening farm (when income from any of the specified agricultural sectors after the implementation of the business plan and throughout the entire period of control of the business plan accounts for 50% of the total operating income at the least) and commits to make sure that, following the implementation of the business plan and throughout the entire control period, at least 50% of agricultural land managed thereby on legal grounds will be planted with plants of the specialty of the farm being established.
 
Thus, if a farmer invests in growing beans and peas and specifies in his application the agricultural sector where he will invest (horticulture), and he will meet the requirements of clause 30.2.3 having implemented the business plan and throughout the entire control period, he will be able to award himself the 15 points.
 
 
QUESTION: What documents are necessary in order to apply for support for young farmers?
 
ANSWER: Please be informed that the applicant applying for support under the measure “Economic and Business Development”, area of activity “Support for the setting up of young farmers” of the Lithuanian Rural Development Programme 2014 – 2020 shall submit an application and a business plan. The forms of these documents are available online at: https://www.nma.lt/index.php/parama/lietuvos-kaimo-pletros-20142020-m-programa/dokumentu-formos-1/ukio-ir-verslo-pletra/8704
 
Also please note that Section XI “Documents to be Submitted” of the application form lists additional documents to be submitted along with an application for support under the measure.
 
 
QUESTION: Is value added tax (VAT) eligible for funding if the project promoter is not a VAT payer?
 
ANSWER: Please be informed that the currently valid rules of the implementation of the measure “Economic and Business Development” (hereinafter – the Measure), area of activity “Support for the setting up of young farmers” of the Lithuanian Rural Development Programme 2014–2020 (hereinafter – the Programme) applicable since 2019, approved by Order No. 3D-309 of the Minister of Agriculture of the Republic of Lithuania of 21 May 2019 (current consolidated version as of 16 May 2020) does not distinguish any eligible and ineligible expenditure categories; value added tax could be compensated from support funds.
 
Last updated: 2020-07-30 11:00