Direct budget support for farmers is expected to remain almost unchanged in the next three years, despite a significant increase in the overall funds of the rural development program. According to the Medium-Term Budget Program 2027-2029 of the Ministry of Agriculture, the funds foreseen for the beneficiaries of support measures in agriculture amount to about 5.23 billion lek in 2027 compared to 5.2 billion lek that were provided this year.
In 2028, the fund is expected to decrease slightly to 5.21 billion lek, or by about 15 million lek compared to the previous year. Only in 2029 is a more noticeable increase predicted, to about 5.42 billion lek. In the entire period 2027-2029, the budget funds going to support farmers increase by only 190 million lek, or about 3.6%.
The increase in funds is lower than that of the number of beneficiaries. For 2027, around 72,250 beneficiaries of support measures in agriculture are expected, while in 2028 the number increases to 75 thousand and in 2029 to 76 thousand. While the number of farmers intended to benefit from the schemes increases by around 5.2% in three years, the available fund increases by only 3.6%.
The performance of direct funds for farmers is significantly slower than that of the entire “Rural Development” program. The budget of this program is projected at around 8.31 billion lek in 2027, increasing to 9.71 billion lek in 2028 and reaching around 10.55 billion lek in 2029. A significant part of the increase in the rural development budget is related to the expansion of capital expenditures.
According to the medium-term planning, the program’s capital expenditures increase from about 2.3 billion lek in 2027 to about 4.36 billion lek in 2029. This represents an increase of about 89% within two years and explains most of the expansion of the program’s overall budget. The MTBP data show a change in the structure of rural development financing, as the overall budget expands, but the increase is mainly focused on investments, while direct support to farmers remains almost unchanged./ Monitor
