Analysis of the Draft Law:
Analysis of Draft Law of Ukraine No. 13202-1 “On Amendments to Certain Laws of Ukraine Regarding the Organizational Principles of Support in the Agricultural Sector”
Essence of the Draft Law
The draft law aims to reform the system of state support for the agricultural sector in Ukraine. It envisages a transition to new organizational principles, in particular, through the creation of a Payment Agency, which will administer state aid payments. The criteria and principles for providing support are also clarified, and mechanisms for controlling its use are introduced. The goal is to increase the efficiency and transparency of the use of budget funds in the agricultural sector, as well as to adapt to European standards.
Structure and Main Provisions
The draft law contains amendments to several key laws of Ukraine, in particular:
- Law of Ukraine “On Principles of State Agrarian Policy and State Policy of Rural Development” (new title of the Law “On State Support of Agriculture of Ukraine”): defines the scope of the law, basic terms, instruments for implementing agrarian policy, principles of financing, as well as the institutional mechanism for implementing state agrarian policy.
- Amendments to the Laws of Ukraine “On Farm Farming”, “On Peculiarities of Agricultural Products Insurance with State Support”, “On the Partial Credit Guarantee Fund in Agriculture”, “On the Information and Communication System””State Agrarian Register,” “On Identification and Registration of Animals,” “On Collection and Accounting of a Single Contribution to Mandatory State Social Insurance,” “On Aquaculture,” “On Agricultural Cooperation,” “On State Regulation of Genetic Engineering Activities and State Control over the Placing on the Market of Genetically Modified Organisms and Products,” “On Hops and Hop Products.”
Main Changes:
- Establishment of a Paying Agency: A centralized body for administering support.
- Implementation of the State Agrarian Register: An electronic system for identifying and verifying producers.
- Monitoring of Payments: Strengthening control over the targeted use of support funds.
- Integrity of the Recipient: Establishing criteria that the support recipient must meet (absence of bankruptcy, debt, ties with the aggressor, etc.).
- Support for Small Producers and Combatants: Priority provision of support to these categories.
- Agricultural Development Strategy: Development and monitoring of a strategy based on SWOT analysis.
Most Important Provisions
The draft law contains provisions that may have a significant impact on various stakeholders:
- For Legislators: The need to control the activities of the Paying Agency, as well as the development and approval of subordinate legislation.
- For Experts: The ability to analyze the effectiveness of new support mechanisms and their impact on the agricultural sector.
- For Business: Changing the rules for obtaining state aid, the need to
