Measure 17 – Risk management
Sub-measures 17.2 Mutual Funds
Direct beneficiaries: Agricultural Mutual funds established and accredited by the competent authority conformance with national legislation.
Indirect beneficiaries: Farmers active within the meaning of Art. 9 of Regulation No 1307/2013, which signed mutual funds for agriculture, as defined in this measure and in accordance with national legislation.
2. Type of Support:
a. The financial contribution of mutual funds for financial compensation paid to farmers for economic losses caused by adverse weather conditions or the manifestation of an animal or plant disease or pest or an environmental incident;
b. Financial contributions for administrative costs associated with the establishment of mutual funds, allocate in a degressive over a maximum period of three years;
c. Financial contributions for interest on commercial loans contracted by mutual funds in order to pay financial compensation to farmers in crisis.
3. Eligible expenses:
Eligible expenses of mutual funds publicly funded in accordance with this measure are grouped into three categories:
1. Financial compensation paid to farmers for economic losses caused by adverse weather conditions or the manifestation of an animal or plant disease or pest infestation or an environmental incident
2. The administrative costs associated with the establishment of mutual funds spread across a maximum of three years in a degressive
3. Interest paid on commercial loans contracted by the mutual fund for the purpose of paying financial compensation to farmers in case of crisis.
Not eligible expenses related to reinsurance mutual funds, and no initial capital contributions fondurillor.
Conditions for eligibility Mutual Funds
– Mutual funds must be accredited in accordance with national legislation. In this respect, MARD and other regulatory authorities concerned shall ensure compliance of national legislative framework regulating mutual funds with EC regulations in this area.
– Mutual funds must follow a transparent policy regarding payments made to the fund and amounts withdrawn from it;
– Mutual funds must provide clear rules for assigning responsibilities for any debts made;
– Mutual funds must have initial capital contributions consisting exclusively of farmers enrolled in the background; will not make any financial contribution from public funds initially subscribed capital.
Conditions for eligibility compensation to farmers by mutual funds:
– Production phenomenon that gives rise to a right to payment of compensation must be officially recognized by the competent authority in accordance with applicable national law;
– Beneficiary compensation must be a member of the mutual fund;
– Beneficiary compensation must be active farmer as defined in Regulation no. 1307/2013;
– Loss of production for which compensation may be granted due to one of the events set out in the measure;
– Loss of production for which compensation is granted must be at least 30% of the average annual production of the farmer in the three years immediately preceding or an average of three years based on the immediately preceding period of five years, excluding the highest and lowest .
– Bet on compensation granted for animal and plant diseases and insect infestation, the farmer must be adopted preventive and / or mitigation of the event provided by applicable law.
The award of damages ȋn procedures established mutual funds will provide for penalties bet on negligence on the part of farmers.
Support under this measure will be up to 65% of the expenses eligible.