Three billions to agricultureBy Giuseppe Arleo
- 25 January 2022
- Posted by: Competere
- Category: Sustainable Nutrition
Italy’s new budget law has given even bigger centrality to the role of agriculture on incentives policy. The 3 billion euros grant underscores the priority given to the primary sector and the agricultural supply chain in the context of the economic policies adopted lately by our country. We welcome the strengthening of agriculture and aquaculture, as well as the creation of ad-hoc funds aimed at the protection and the development of agrifood industries.
ENHANCING A STRATEGIC SECTOR
The impressive allocation of funds, added to the regional funds that will be distributed to primary sector businesses and supply chains as determined by the 2021-2027 plan, will open up important venues of development for the offer of agricultural products, which will in turn help increase competitiveness and adjustment to the challenges of the coming years.
The funds granted by the budget law have almost doubled compared to last year, with considerable investment in enhancing supply chains and their resilience to natural disasters and adverse climate conditions through preventive measures against environmental risks. Public funding in the Fund for competitiveness of supply chains and Food Districts, as well as the strengthening of specific chains like that of white meat, beekeeping, pharmaceutical plants, shell fruit, beer (thanks to tax cuts), and the DOP, IGP and bio wine sectors, are creating a well-structured incentive-based policy with the goal of adding value to a sector of primary importance for the economy.
1,1 BILLIONS IN HORIZONTAL MEASURES
The proposed funds are truly remarkable in size and are more “strategic” in character compared to previous years:
- €941,5 million, until 2027, to risk mitigation, 691,5 of which through the institution of the National mutual fund for catastrophic risk insurance and €250 million to subsidized insurance
- €381,5 million in fiscal and tax subsidies, including the extension of the Green Bonus, with the allocation of €237 million in income tax exemption for land and agricultural income of direct farmers and agricultural entrepreneurs in agricultural welfare; €74,5 million for zootechnics support; €54 million in 2022-2024 for the extension of tax breaks of farmers under 40; €16 million for the tax reduction on artisanal breweries with an output of less than 60.000 hectoliters per year.
- €1140 million in “horizontal measures” comprising of €900 million until 2027 for funding of the new Sabatini and €240 million until 2030 for the guarantee fund for the creation of renewable energy communities. Extension until 2025 of the 4.0 transition tax credit and postponement to 2023 of the plastic tax and sugar tax policies.
- Agricultural sector funds’ development will receive €287,5 million, 160 of which reserved to the current Fund for the development and support of agricultural, fishing and aquacultural supply chains, and another €76 million for the creation of two investment funds for DOP, IGP and STG products as well as Italian culinary and patisserie excellence.
- Measures in support of agricultural investment will see an increase of €201,5 million: €120 million addressed to the “Food Disitricts” measure, €80,5 million to the Institute of Agrifood Market Services (ISMEA) for its easy and structured credit tenders, €1 million to intelligent labelling of DOP, IGP and organic wine.
- Forestry protection and development will receive €420 million until 2032. It aims at the implementation of the National forestry strategy and the financing of Mountain development fund (€100 million for 2022 and €200 million from 2023).
The multi-annual timeline and sizeable amount of these measures represent an important starting point for the protection of the agricultural sector that can be a driving force for economic