Date: May 29th 2010

European Commission announced the Romanian Ministry of Agriculture and Rural Development the decision on state aid for applying a rate of excise duty of eur 21 per 1000 litres for diesel used in agriculture.

After analyzing GD no. 408/2010 approving State aid granted for diesel used in agriculture, the Commission made no objection and decided that an agreed scheme is compatible with the internal market. However, in its assessment, the Commission found that the legislative act complies with “Community guidelines on state aid in the agriculture and forestry 2007-2013’ and that reducing the duty established by legislative act is intended to help facilitate the development of certain activities or regions economic, without trading conditions to an extent contrary to the common interest.

Following the opinion, GD no 408/2010 shall enter into force from Thursday, May 27th 2010. Agricultural diesel users, potential beneficiaries of the scheme should apply, at each supply with diesel sales tax documents (invoices) issued by providers on behalf of beneficiaries, the amounts purchased and used from May 27th 2010, to qualify for subsidy duty.

The entry into force of this decision of the Government, the duty shall be the equivalent in RON of eur 21 per 1000 litres, compared with rates from eur 293.215 per 1000 liters in 2010 and eur 309 per 1000 litres in 2012. State aid reimbursement form shall be applied yearly for a total of more than 700,646,000 litres of diesel. This amount is allocated among different sectors of primary production, based on average consumption per hectare for each task. The total budget provided for the three years of implementation of the scheme is to lei 3,050,000,000 (about eur 735.1 million).

Authority responsible for administration scheme is Paying and Intervention Agency for Agriculture (APIA) in center county / local. Recipients may submit requests for prior agreement for funding reimbursement, after publication in the Romanian Official Gazette of the Order of Minister.

Source: http://www.recolta.eu/comisia-europeana-a-aprobat-schema-de-ajutor-de-stat-pentru-motorina-utilizata-in-agricultura/

Posted: 29 May 2010 under Agri solutions, Romania, Romanian agri legislation.
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LAND may become the world’s biggest asset class, and listed farm operators win an upward rerating, Hardman & Co has said in a report identifying agriculture services groups as the next focus of sector investment.

Farmland prices have, in doubling in the UK and US over the last decade, made shares look “an embarrassingly inept bet”, the London broker said. Stocks have fallen by 10-20% during the same period.

And the outperformance looks set to continue, driven by rising food prices and demand from investment funds.

Population pressure

Farmland, whose $5,000bn value equates to about 7-10% of the value of world equity markets, could be worth 15-25% of share values by 2020.

“By 2050, it is possible to argue that food producing land might have a superior value to all other asset classes,” Hardman analyst Doug Hawkins said, noting forecasts of rising global populations.

“This land is feeding over 6bn people and is being pressed into feed a further 3bn by 2050.”

The broker noted the growth of funds dedicated to investing in farmland, with Emergent Asset Management proposing to invest some $4bn in farms in sub-Saharan Africa, where land is reportedly available for less than $200 an acre, compared with a global average of $1,350 per acre.

The area also being targeted by private equity group Silverlands, which is seeking $300m for its scheme, while Duabi-based peer Pharos Miro has already raised $350m to invest in Africa and Black Sea states.

Growing share

However, land was not the only way for investors to ride the industry’s rising tide, with the agriculture sector likely to account for a greater chunk of stockmarket values as its growing importance raises its economic contribution.

Agriculture accounts for 2% or less of economic output in most developed countries.

“But the outlook for these companies to increase their share of domestic and global GDP is significant, as the world grapples with the need to increase food production,” Mr Hawkins said.

“This suggests a strong basis for a rerating of agriculture-related investments and assets.”
Broader beneficiaries

Besides direct farm operators, the sector’s increasing importance would benefit companies providing services and supplies.

“The next phase will be for investors to focus on the value-adding scientific, infrastructure and management assets needed to generate the extra productivity required from arable land,” Mr Hawkins said.

Genus, the genetic group, and seeds and sprays giants Monsanto and Syngenta were “already proven models”.
“We will focus on soil science, water management, land management, plant and animal genetics, crop handling technologies and environmental management.”

Source: http://www.agrimoney.com/news/land-may-become-top-asset-class—beating-shares–1774.html

Posted: 29 May 2010 under Agri solutions, Agribusiness worldwide.
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By carefully selecting which varieties of food crops to cultivate, much of Europe and North America could be cooled by up to 1°C during the summer growing season, say researchers from the University of Bristol. This is equivalent to an annual global cooling of over 0.1°C, almost 20% of the total global temperature increase since the Industrial Revolution.

The growing of crops already produces a cooling of the climate because they reflect more sunlight back into space, compared with natural vegetation. Different varieties of the same crop vary significantly in their solar reflectivity (called ‘albedo’), so selecting varieties that are more reflective will enhance this cooling effect. Since arable agriculture is a global industry, such cooling could be extensive.

To read more please go on http://www.bristol.ac.uk/news/2009/6091.html

Posted: 20 July 2009 under Global cooling.
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