DECREE OF THE PRESIDENT OF THE REPUBLIC OF AZERBAIJAN
Guided by Article 109, Clause 32 of the Constitution of the Republic of Azerbaijan, for the purpose of forming a new mechanism related to support measures applied in the agricultural sector, ensuring accountability, transparency and efficient use of budget funds in this field, simplifying and electronicizing applications, as well as "State support for agriculture" I make a decision in accordance with Decree No. 413 of the President of the Republic of Azerbaijan dated December 19, 2018, "on improvement of leasing activities in the agricultural sector", I resolve:
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1. "Regulation on subsidizing agricultural production" should be approved (attached).
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2. According to the Regulation approved by Part 1 of this Decree, the base amount used in the calculation of subsidies in the field of horticulture should be determined at 200 (two hundred) manats.
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3. Ministry of Agriculture of the Republic of Azerbaijan:
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3.1. Ensure the creation of the "Subsidy" information system and the provision of subsidies in accordance with the Regulation approved by Part 1 of this Decree from January 1, 2020;
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3.2. In agreement with the State Agency for Service to Citizens and Social Innovations under the President of the Republic of Azerbaijan, prepare the draft of the regulation on the "Electronic Agriculture" information system within three months and submit it to the President of the Republic of Azerbaijan; [1]
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3.3. to approve service regulations for the organization of subsidies to producers of agricultural products within five months;
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3.4. report to the President of the Republic of Azerbaijan once a year on the results of subsidizing the production of agricultural products.
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4. The State Agency for Service to Citizens and Social Innovations under the President of the Republic of Azerbaijan, together with the relevant state institutions, integrates relevant information systems into the "Electronic Agriculture" information system through the "Electronic Government" information system in order to provide the "Subsidy" information system with the following information. In accordance with the requirements of the "Rules for the formation, management, integration and archiving of state information resources and systems" approved by Decree No. 263 dated September 12, 2018, provide:
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4.1. information on agricultural means and products produced, imported and sold, agroclimatic and hydrometeorological information required for specialization;
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4.2. actual information about agricultural purpose, as well as other categories of lands under cultivation and perennial crops, their owner, user and lessee. [2]
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5. The Cabinet of Ministers of the Republic of Azerbaijan:
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5.1. To prepare and submit to the President of the Republic of Azerbaijan within three months the proposals regarding the adaptation of the acts of the President of the Republic of Azerbaijan to this Decree;
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5.2. Ensure that the normative legal acts of the Cabinet of Ministers of the Republic of Azerbaijan are adapted to this Decree within three months and inform the President of the Republic of Azerbaijan;
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5.3. monitor the adaptation of normative legal acts of central executive authorities to this Decree and inform the President of the Republic of Azerbaijan about its implementation within five months;
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5.4. resolve other issues arising from this Decree.
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6. The Ministry of Justice of the Republic of Azerbaijan should ensure that the normative legal acts and acts of a normative nature of the central executive power bodies are adapted to this Decree and inform the Cabinet of Ministers of the Republic of Azerbaijan.
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7. The Ministry of Finance of the Republic of Azerbaijan should ensure that the obligations incurred in 2019 for the subsidies given to the producers of agricultural products at the expense of the state budget funds cannot be paid at the expense of the budget funds allocated in the current year, to ensure that those payments are made at the expense of the funds provided for this purpose in the state budget for the next year.
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8. Representations of the heads of local executive power in the administrative territorial circles should participate in the inclusion of subsidy applications of farmers operating in that area into the "Subsidy" information system and in the implementation of awareness.
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9. Parts 1 and 2 of this Decree shall enter into force on January 1, 2020.
Ilham ALIYEV,
President of the Republic of Azerbaijan
Baku city, June 27 2019
№ 759
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Approved under Decree 759 dated June 27 2019
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RULE
on subsidizing production of agricultural products
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General provisions
1.1. This Rule determines the mechanism and conditions for granting subsidies to individuals and legal entities at the expense of the state budget in connection with the production of agricultural products.
1.2. The main concepts used for the purposes of this Regulation have the following meanings:
1.2.1. subsidy - financial means provided free of charge to producers of agricultural products at the expense of the state budget;
1.2.2. "Subsidy" information system (hereinafter - SIS) - a subsystem of the "Electronic agriculture" information system (hereinafter - EKTIS), which provides electronic reception, processing and response to requests for subsidies to producers of agricultural products; [3]
1.2.3. Agrarian Subsidy Council (hereinafter - the Council) - a collegial body established in accordance with paragraph 2.2 of this Regulation and making decisions on the application of subsidies in the agricultural field;
1.2.4. base amount – fixed financial means used in the calculation of subsidies in the field of horticulture;
1.2.5. agricultural production means - mineral fertilizer, biohumus, certified seeds, seedlings and pesticides;
1.2.6. farmer - a natural or legal person who is a producer of agricultural products and is registered in SIS (for crop and animal husbandry);
1.2.7. supplier - a natural or legal person who supplies agricultural products and is registered in SIS;
1.2.8. supplier - a natural or legal person who sells agricultural production equipment, as well as modern irrigation systems and poles and is registered in SIS; [4]
1.2.9. planting subsidy - a part of the expenses spent on the purchase of agricultural production tools for the cultivation of agricultural plants in accordance with the intended purpose of those lands, conducting agrochemical analysis of the soil, the purchase and construction of modern irrigation systems and poles in perennial plantings on the lands under planting and perennial crops subsidy for each hectare of cultivated area to compensate; [5]
1.2.10. crop subsidy – a subsidy given in addition to the planting subsidy for each ton of agricultural products delivered to suppliers; [6]
1.2.11. seed subsidy – subsidy given for the sale of certified 1st and 2nd reproduction seeds and seedlings produced in the country;
1.2.12. animal subsidy - a subsidy given for each healthy calf obtained through artificial insemination or embryo transfer for the purpose of improving the breed composition of local animals, increasing the number of animals with high productive genetic potential;
1.2.13. bee subsidy – subsidy given for each bee family (hive);
1.2.14. cocoon subsidy - subsidy given for each kilogram of fresh cocoons produced in the country and delivered to suppliers;
1.2.15. quota - the amount of seeds and seedlings to be subsidized for each plant determined by the Council (kilograms and units);
1.2.16. certified seeds and seedlings - seeds and seedlings registered in the state register in accordance with the Law of the Republic of Azerbaijan "On Seed Production" and having a certificate of conformity of varieties and sowing qualities;
1.2.17. single planting area - adjacent planting areas used by farmers and decided to cultivate a single plant selected by them. [7]
1.3. Other concepts used in this Regulation express the meanings defined by the normative legal acts of the Republic of Azerbaijan.
2.Organization of subsidizing
2.1. The organization of providing subsidies to farmers is carried out in accordance with this Rule and service regulations.
2.2. A Council is established to make decisions on the application of subsidies in the agricultural sector. The Council consists of the Ministry of Agriculture of the Republic of Azerbaijan (2 people), the Ministry of Economy of the Republic of Azerbaijan (1 person), the Ministry of Finance of the Republic of Azerbaijan (1 person), the State Statistics Committee of the Republic of Azerbaijan (1 person), the National Confederation of Entrepreneurs (Employers) Organizations of the Republic of Azerbaijan (1 person) person) and consists of 7 members, including representatives of local farmers' association (1 person). The Council is managed by the Minister of Agriculture of the Republic of Azerbaijan.
2.3. The Council operates on a public basis. Meetings of the Council are authorized when more than half of its members are present. At the meeting of the Council, decisions are taken by simple majority by open voting, with one vote per member. Abstentions are not allowed during voting. In the event of a tie, the vote of the chairperson is decisive.
2.4. By January 15 of each year, the Council makes decisions on the following and informs the public about it:
2.4.1. approval of the list of places declared as a single planting area for the application of planting subsidy, the list of plants by region (taking into account paragraph 2.5-1 of this Regulation) and planting coefficients applied to them; [8]
2.4.2. approval of the list of agricultural products and the coefficients applied to them for the application of product subsidy;
2.4.3. approval of the list of agricultural products for the application of seed subsidy and the coefficients and quotas applied to them;
2.4.4. submission of proposals regarding the improvement of the subsidy application mechanism to the Ministry of Agriculture of the Republic of Azerbaijan (hereinafter - the Ministry).
2.5. The Council may update the lists, coefficients and quotas determined under clause 2.4 of this Regulation according to the results of the annual assessment.
2.5-1. In accordance with subsection 2.4.1 of this Regulation, if plants that are subject to agricultural insurance (hereinafter - plants to be insured) according to the Law of the Republic of Azerbaijan "On Agrarian Insurance" are included in the list approved by the Council, the fact that those plants are export-oriented or ensure food safety its role in making is taken as the basis. [9]
2.6. Providing subsidies to farmers (making payments to beneficiaries), as well as organizing and coordinating the activities of the Ministry's state agricultural development centers (hereinafter - DAIM) in this field is carried out by the Agrarian Credit and Development Agency (hereinafter - the Agency) under the Ministry of Agriculture of the Republic of Azerbaijan.
2.7. The agency provides access to information about the electronic declaration of the farmer or the subsidy funds formed by the credit organizations regarding the formalization of the subsidy funds to be given to him as a guarantee of the farmer's agricultural loan (leasing) debts or directed to the payment of those debts based on the farmer's consent and application to the credit organizations. [10]
2.7-1. In order to pay subsidies to producers of agricultural products in the areas of crop and animal husbandry, the preparation of plastic cards to which subsidy amounts are transferred and the provided banking services are carried out at the expense of the funds allocated from the state budget every year based on the order of the Agency agreed with the authorized bank. [11]
2.8. DAIM performs the following services related to the provision of subsidies:
2.8.1. registers farmers, suppliers and suppliers in the SIS in the cases specified in this Regulation;
2.8.2. verifies the documents of farmers who have applied for subsidies and enters their applications into the SIS;
2.8.3. provides information on the provision of subsidies and the use of SIS;
2.8.4. investigates the problems that arise in the process of granting subsidies and makes suggestions to the Agency on their solution.
2.9. Farmers, suppliers and suppliers do the following in SIS:
2.9.1. registration;
2.9.2. providing information on the use status of the land areas designated for agricultural purposes, as well as other categories of lands under the purpose of planting and perennial plantings, and the operations they carry out regarding the agricultural products they produce, agricultural production tools; [12]
2.9.3. making applications for receiving the subsidy and compiling the applications in electronic form, entering the documents related to the subsidy into the SIS;
2.9.4. obtaining information about subsidies.
2.10. Subsidies are not given to farmers who are not registered in SIS. The right to receive subsidy is not transferable to another person.
2.11. Integration of SIS with other state information resources and systems, as well as information exchange.
3.5. Product subsidy is calculated as follows:
base amount × output factor = output subsidy
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yield coefficient – an indicator determined by the Council to promote productivity in certain crops.
3.6. The seed subsidy is determined by applying coefficients to the base amount for each kilogram of 1st and 2nd reproduction seeds produced and sold in the country, and for each number of seedlings, for the types of plants determined by the Council:
(Base amount x seed coefficient) x amount of seeds or seedlings submitted by the farmer for subsidy x (quota / sum of the amount of seeds and seedlings submitted for subsidy) = seed subsidy
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seed coefficient – an indicator determined by the Council for calculating the subsidy amount per 1 kilogram of seed or 1 seedling produced in the country.
3.7. According to paragraph 3.6 of this Regulation, the amount of seeds and seedlings sold to the farmer, which is taken into account in the calculation of the seed subsidy, is determined according to the need for sowing or planting, which is calculated according to the land area used.
3.8. Farmers enter the following documents and information into the SIS within the periods determined by this Regulation in order to receive subsidies for crop production:
3.8.1. the electronic declaration (application) about the planned and conducted planting areas and perennial plantings;
3.8.2. According to Article 30.5 of the Law of the Republic of Azerbaijan "On Administrative Proceedings", if it is not possible to obtain through the Electronic Services Portal of the State Service for Real Estate Affairs under the Ministry of Economy of the Republic of Azerbaijan and the "Electronic Notary" information system of the Ministry of Justice of the Republic of Azerbaijan, which is integrated with EKTIS, the characteristics of the land plot ( purpose designation of the land, valuation) and a document confirming the right of use of the farmer (from January 1, 2025, an extract from the state register of real estate regarding ownership, lease or use rights over the land); [17]
3.8.2-1. documents on the results of the agrochemical analysis of lands intended for agricultural purposes, as well as for other categories of lands under cultivation and perennial crops; [18]
3.8.3. information on the amount of agricultural production tools used for planting subsidies and documents on their purchase, as well as the number of the insurance contract in the case of plants to be insured; [19]
3.8.4. documents confirming the transfer of agricultural products to suppliers for crop subsidy, the sale of seeds and seedlings for seed subsidy;
3.8.5. documents regulating the activities of agricultural cooperatives.
3.9. Additional documents may be requested from the farmer only in the cases and in the manner stipulated in Article 32 of the Law of the Republic of Azerbaijan "On Administrative Proceedings".
3.10. The farmer enters the documents and information specified by clause 3.8 of this Regulation into the SIS directly (electronically) or through the DIM.
3.11. The supplier sells the agricultural means of production to the farmer taking into account the amount of the planting subsidy. In the event that the supplier refuses to sell the agricultural means of production, taking into account the amount of the planting subsidy, due to the non-fulfillment of the conditions specified in clause 3.8 of this Regulation, he shall inform the farmer in writing within 7 (seven) working days, indicating the reasons for the refusal. [20]
3.12. Regarding the planting subsidy, the farmer enters the information about the planting, including existing and new perennial plantings into the SIS, approves the automated electronic declaration and applies for the subsidy. The amount of the approved subsidy is transferred to the farmer's card account within 30 (thirty) working days, taking into account the results of the monitoring conducted within 30 (thirty) working days in accordance with the service regulations and part 5 of this Rule, and the farmer is informed about it (SMS, e-mail or directly through SIS) is provided. As soon as the farmer uses the crop subsidy balance in the card account on the relevant payment line in accordance with paragraph 3.13 of this Regulation, those funds are automatically transferred from the card account to the accounts of suppliers, agrochemical laboratories or authorized credit organizations. [21]
3.13. 25 percent of the amount of planting subsidy is cashed, and 75 percent is used for the purchase of agricultural production tools for planting in the form specified in paragraph 3.12 of this Regulation, conducting agrochemical analysis of soils, purchasing and building modern irrigation systems and poles for perennial plantings. [22]
3.14. In relation to product subsidy, farmers must submit the electronic declaration (application) provided for in subsection 3.8.1 of this Regulation by June 1st, documents on the delivery of the product to the supplier (product acceptance receipts) by December 15th, and suppliers must submit the agricultural products they received. they must enter information about the type and quantity of their product into the SIS. Payments for documents submitted after December 15 are made in the 2nd quarter of the following year.
3.15. Farmers enter the forecasts provided for in paragraph 3.8.1 of this Regulation regarding seed subsidy by June 1 of the current year, and the information and documents related to the sale of seeds and seedlings into the SIS by December 10, and the Agency approves them.
3.16. According to the regulations approved by the Ministry, after the information according to the conditions defined in clause 3.8 of this Regulation is confirmed in the SIS, the farmer's subsidy payment for the crop field is transferred to his account at the end of that month.
3.17. During the calendar year, the subsidy amount allocated from the budget and not given to the farmer is returned to the budget. If the subsidy funds given to the farmer are not used within 2 (two) years, a notification is sent to him via SMS and e-mail. If the farmer does not use the subsidy funds within 3 (three) months after the notification is sent, the subsidy will not be paid to him for the next year. [23]
3.18. Subsidy is not given for planting in residential areas.
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Subsidizing animal husbandry
4.1. Animal subsidy is determined in the amount of 100 (one hundred) manats for each healthy calf.
4.2. The bee subsidy is determined in the amount of 10 (ten) manats per calendar year for each family of bees kept by farmers engaged in beekeeping and is provided until 2023.
4.3. The cocoon subsidy is given to farmers who produce cocoons in the amount of 6 (six) manats per kilogram of wet cocoons produced and delivered to the supplier (except for split and carapachakh cocoons). [24]
4.4. The following conditions are defined in connection with the receipt of the subsidy determined for the livestock sector:
4.4.1. artificial insemination should be carried out by specialists who have successfully completed advanced training or personnel retraining in this direction, received a special certificate and diploma, and are registered in SIS;
4.4.2. using animal semen produced in artificial insemination centers created for this purpose, as well as imported into the country by individuals or legal entities registered in SIS;
4.4.3. identification of the artificially inseminated animal and the animal born as a result of artificial insemination, as well as the bee families and entering the relevant information into the SIS of DAIM;
4.4.4. submission of documents regarding the handing over of wet cocoons to the supplier by farmers regarding the cocoon subsidy and information on the quantity of wet cocoons supplied by the suppliers to the SIS by June 30 of each year.
4.5. Artificial insemination service is performed for a fee based on a mutual agreement between the specialist and the animal owner.
4.6. Subsidy payment in the field of animal husbandry is carried out no later than 15 (fifteen) working days after the information in accordance with the conditions specified in clause 4.4 of this Regulation is confirmed in the SIS according to the regulations approved by the Ministry.
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Monitoring and evaluation
4.1. Animal subsidy is determined in the amount of 100 (one hundred) manats for each healthy calf.
4.2. The bee subsidy is determined in the amount of 10 (ten) manats per calendar year for each family of bees kept by farmers engaged in beekeeping and is provided until 2023.
4.3. The cocoon subsidy is given to farmers who produce cocoons in the amount of 6 (six) manats per kilogram of wet cocoons produced and delivered to the supplier (except for split and carapachakh cocoons). [24]
4.4. The following conditions are defined in connection with the receipt of the subsidy determined for the livestock sector:
4.4.1. artificial insemination should be carried out by specialists who have successfully completed advanced training or personnel retraining in this direction, received a special certificate and diploma, and are registered in SIS;
4.4.2. using animal semen produced in artificial insemination centers created for this purpose, as well as imported into the country by individuals or legal entities registered in SIS;
4.4.3. identification of the artificially inseminated animal and the animal born as a result of artificial insemination, as well as the bee families and entering the relevant information into the SIS of DAIM;
4.4.4. submission of documents regarding the handing over of wet cocoons to the supplier by farmers regarding the cocoon subsidy and information on the quantity of wet cocoons supplied by the suppliers to the SIS by June 30 of each year.
4.5. Artificial insemination service is performed for a fee based on a mutual agreement between the specialist and the animal owner.
4.6. Subsidy payment in the field of animal husbandry is carried out no later than 15 (fifteen) working days after the information in accordance with the conditions specified in clause 4.4 of this Regulation is confirmed in the SIS according to the regulations approved by the Ministry.
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Final provisions
6.1. Officials of the agency bear administrative or criminal responsibility for non-use of state budget funds allocated for subsidies.
6.1-1. As a result of the monitoring carried out in accordance with clause 5.1 of this Rule, if it is found that the farmer received subsidies by deliberately entering wrong information in EKTIS or did not use the subsidy amount transferred to his account as intended, the farmer is brought to administrative responsibility in accordance with the law.
6.1-2. Administrative liability of a farmer who received a subsidy by deliberately entering false information in EKTIS does not prevent the application of the requirements of paragraph 5.5 of this Regulation.
6.1-3. For the next 2 (two) years, the subsidy will not be paid to the farmers who were brought to administrative responsibility for not using the subsidy amount transferred to their accounts. [26]
6.2. Disputes arising in connection with the implementation of this Regulation are resolved administratively and judicially.
6.3. The list of subsidized farmers by region (city) and villages is posted on the Agency's official website no later than December 25.
LIST OF USED SOURCE DOCUMENTATION
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Decree of the President of the Republic of Azerbaijan No. 896 dated December 23, 2019 ("Khalg" newspaper, December 25, 2019, No. 287, Legislative Collection of the Republic of Azerbaijan, 2019, No. 12, Article 1939)
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Decree of the President of the Republic of Azerbaijan No. 1026 dated May 18, 2020 ("Khalg" newspaper, May 19, 2020, No. 97, Legislative Collection of the Republic of Azerbaijan, 2020, No. 5, Article 551)
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Decree of the President of the Republic of Azerbaijan No. 1300 dated March 12, 2021 ("Khalg" newspaper, March 13, 2021, No. 54, Legislative Collection of the Republic of Azerbaijan, 2021, No. 3, Article 224)
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Decree of the President of the Republic of Azerbaijan No. 1361 dated June 12, 2021 ("Khalg" newspaper, June 13, 2021, No. 122, Legislative Collection of the Republic of Azerbaijan, 2021, No. 6, Book I, Article 576)
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Decree of the President of the Republic of Azerbaijan No. 1436 dated September 1, 2021 ("Khalg" newspaper, September 2, 2021, No. 185, Legislative Collection of the Republic of Azerbaijan, 2021, No. 9, Article 976) (This Decree Valid until January 1, 2025.)
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Decree of the President of the Republic of Azerbaijan No. 1570 dated December 30, 2021 ("Khalg" newspaper, December 31, 2021, No. 286, Legislative Collection of the Republic of Azerbaijan, 2021, No. 12, Article 1435)
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Decree of the President of the Republic of Azerbaijan No. 1622 dated March 4, 2022 ("Khalg" newspaper, March 5, 2022, No. 50, Legislative Collection of the Republic of Azerbaijan, 2022, No. 3, Article 210)