How much doesthe PSPAprogram cost?
The program’s total budget for the entire period is 21.5 billion lei. Annual allocations for the PSPA are expected to increase—from 3.25 billion lei in 2027 to 6.41 billion lei in 2030.
This year, at least—based on how things look today—is the least predictable part of the program.
Nominally, funding for the PSPA in 2026 is set at 2.3 billion lei. Funds for agricultural subsidies have traditionally been set aside each year in the National Fund for the Development of Agriculture and Rural Areas under the State Budget Law.
In this sense, the adoption of the PSPA does not change much. It is worth noting, however, that of the fund’s budget for the current year, 628.8 million lei are allocated to the Republic of Moldova’s Economic Growth Plan, according to Agroexpert.
As experts from the corporate sector—including industry associations and officials from government institutions—have repeatedly noted, the key point regarding PSPA funding is that the country’s authorities intend to finance it through European “pre-accession funds.”
The problem is that, at present, the European Union’s financial policy and the related Common Agricultural Policy are still in the draft stage and are likely to undergo changes over the course of the year (by the time they are adopted). It is difficult to predict exactly what those changes will be at this time.
For example, some specialized media outlets in neighboring Romania complain that, under the draft of the future EU Common Agricultural Policy, subsidies to Romanian farmers will increase, on the one hand. On the other hand, however, subsidies for the development of the country’s rural regions will be reduced (in the sense that the burden will fall on the national governments of the bloc’s member states). As a result, Romania risks losing billions of euros in European funding.
How will the program’s budget be allocated?
In accordance with Government Decision No. 260/2025, PSPA allocations linked to the country’s 2026–2027 growth plan will be directed primarily toward supporting young (under 40) farmers, small-scale (in terms of scale of operations and land use—up to 10 hectares) agricultural producers, agricultural startups, and the “LIDER” rural initiatives program.
In terms of the structure of financial distribution, the PSPA program focuses on three types of subsidies: direct subsidies—similar to the system of targeted payments per “kilogram of milk” and per “head of livestock” that has been in place for several years— sectoral subsidies, and subsidies for the development of rural regions.
It is characteristic and telling (in light of the above) that the emphasis in the allocation of PSPA funds is on rural development—more than 70% of the program’s total budget. By “rural development,” one must assume, among other things, support (on a competitive basis) for investment projects aimed at modernizing the rural economy (agribusiness in particular).
According to the PSPA, the modernization of agribusiness involves, first and foremost, improving competitiveness, quality management, and compliance with European Union environmental standards.
In other words, this is the most extensive, complex, and costly part of the European integration process. At least for now, there is an unpleasant feeling that Moldova will have to carry out this part of the work within the framework of European integration primarily using its own funds.
