Over the years, the Maltese government has implemented various National Funding schemes, particularly within the agricultural sector, as part of a strategic initiative to achieve specific sectoral objectives. These schemes aim to aid farmers and livestock operators while reducing barriers to entry into the agricultural industry. Below, the National Funding Schemes presently accessible within the agricultural domain are outlined.
In accordance to Section 1.1.5.2 of the European Union Guidelines for State Aid in the Agricultural and Forestry Sectors and Rural Areas 2014-2022, this scheme aims to provide aid to agricultural businesses that voluntarily take steps to improve animal welfare on their farms. To qualify, these actions must exceed the mandatory standards set forth in the Minimum Standards for the Protection of Pigs Regulations. The scheme specifically supports swine producers by considering increased spacing allowances for sows on pig farms. It’s designed as a multi-year commitment lasting up to five years, during which participating farmers must ensure that sow stocking density and available space meet specified dimensions outlined by the Veterinary Regulation Department. Farmers receive an annual payment per sow benefiting from the scheme, predetermined within the grant agreement. The aid is direct, with a maximum rate of €150 per sow or gilt. Applicants must declare the number of eligible animals each year, with 5% subject to on-the-spot checks by ARPA.
The Russian invasion of Ukraine has led to a global emergency with far-reaching impacts on economies worldwide, including that of the European Union. The agricultural sector in Malta is particularly affected due to inherent challenges in sourcing necessary inputs. Malta’s small size and geographical isolation present obstacles in obtaining agricultural resources, all of which are heavily reliant on imports. Additionally, small-scale local producers face disadvantages in bargaining power, leading to increased costs that erode profit margins. This situation is causing a surge in the prices of chemical and synthetic fertilizers compared to previous years, with further increases expected. This rise in costs is rendering horticultural production financially unsustainable. While current production levels may remain relatively stable in the short term, many producers may eventually cease production due to financial losses, leading to unemployment, land abandonment, and challenges in food security. In response, the Maltese government is providing direct aid to offset the increased costs of fertilizers for land farmers, aligning with the Temporary Crisis Framework for State Aid measures. The allocated budget of €3,000,000, fully funded by national resources, will support eligible farmers with a direct grant of €650.00 per hectare per year, capped at a maximum aid amount of €35,000 per undertaking.
Eligible farmers fall into four categories:
Agricultural production in Malta remains steady year-round, but the sector is facing challenges due to an aging farming population and barriers hindering new entrants. Young farmers encounter difficulties in accessing land due to high costs of purchase or rental, compounded by land fragmentation issues in Malta and Gozo. Obtaining business loans, accessing markets, and a lack of mentorship from older farmers further deter new entrants. To address these obstacles and facilitate knowledge transfer, the Ministry for Agriculture, Fisheries, and Animal Rights (MAFA) and the Agriculture and Rural Payments Agency (ARPA), in collaboration with the Malta College of Arts, Science, and Technology (MCAST), have developed this scheme. This initiative allows young farmers to engage with established local landowners, supported by MCAST supervision. Participants dedicate a set number of hours assisting in farm work under the guidance of experienced farmers, combining practical training with structured theoretical learning. The goal is to attract new individuals to the agricultural sector by providing them with valuable experience and knowledge. The scheme aims to foster the next generation of farmers and has been allocated a total budget of €428,000 (€214,000 per call), fully funded by the Government of Malta.