Agriculture a priority sector, direct subsidies for farmers and VAT reimbursement

TIRANA, January 30 – Finance Minister Petrit Malaj said the government will launch the IPARD III program in September, adding 118 million euros in support for agriculture. He made the remarks during a meeting with farmers in Divjaka on the National Scheme 2026, attended by Prime Minister Edi Rama.
At the outset, Malaj stressed that the government treats agriculture as a strategic priority. To support this claim, he pointed to budget growth, noting that agricultural funding rose from 34 million euros in 2013 to 162 million euros by 2025. At the same time, agricultural exports increased from about 120 million euros to more than 500 million euros.
Beyond funding, Malaj highlighted structural growth. He said greenhouse areas expanded from 700 hectares to more than 2,200 hectares. In parallel, irrigated land grew from 120,000 hectares and will reach 300,000 hectares this year.
Looking ahead, Malaj said the government aims to support farmers directly during the current mandate. For this purpose, it introduced a model that combines grants, direct subsidies, sovereign guarantees, and value-added tax reimbursement. Specifically, the 2026 budget allocates 20 million euros for grants and 31 million euros for direct farmer subsidies.
In addition, the sovereign guarantee scheme allows farmers to access soft loans with a two percent interest rate, while the state covers around 70 percent of the credit risk. The government allocated 30 million euros for this instrument in 2026.
Malaj also announced a value-added tax reimbursement scheme for farmers. Starting January 1, 2026, farmers will receive compensation equal to 10 percent of invoiced sales, provided they submit invoices twice a year to tax authorities.
Finally, Malaj reiterated expectations for the opening of IPARD III in September. He said agriculture needs further support and added that current policies aim to make the sector competitive in European markets.
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