Important Update for Agricultural Producers and Suppliers in Romania

 Important Update for Agricultural Producers and Suppliers in Romania 🌾
On October 11, 2024, OUG 118/2024 was published, bringing significant changes to support agricultural producers affected by the 2024 pedological drought .
🔔 Key points:
➡ Force Majeure Classification: Pedological drought = force majeure event, allowing farmers to invoke this in their contracts.
➡ Suspension of Enforcement Actions: Any enforcement actions for due debts in 2024 are suspended until August 1, 2025. This includes credit, leasing, and purchase/supply of agricultural materials.
➡ Conditions for Suspension:At least 50% crop damage due to drought.
Certification through assessment reports by authorized commissions.
Value Chain Impact: The suspension applies across the entire value chain – farmers, distributors – producers.
➡ Payment Incentives: Debtors who settle their obligations by December 31, 2024, will avoid interest, penalties, and late fees, and retain all discounts and benefits. This mean that the farmers who are not paying the debts until December 31, have to pay penalties / interests etc.

Although the authorities’ intention is to help farmers through these measures, it creates more chaos by shifting the burden onto producers and suppliers of necessary agricultural materials. Additionally, many implementation aspects remain unclear, such as what constitutes 50% of crops—total crops of the farmer, the specific crop for which products were used, or crops from a specific area or locality? These ambiguities, among others, need to be addressed to ensure fair and effective implementation.
Stay strong and resilient! 💪🌱
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