Law of

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REPUBLIC OF ALBANIA

PARLIAMENT

PROJECT

LAW

NR____ DATE ____ ___ 2007

“FOR AGRICULTURE AND RURAL DEVELOPMENT”

According to the articles 78 and 83, point 1 of the Constitution, with the proposal of Councilof Ministers,

THE PARLIAMENT

OF THE REPUBLIC OF ALBANIA

DECIDED:

CHAPTER I

GENERAL DISPOSITIONS

Article 1

The goal

This law determines the objectives, the means and the programming of policies for

agriculture and rural development, for agriculture public service, for research and professional training, as well as for information database in the field of agriculture and rural

development.

Article 2

Definitions

In this law are used the following definitions:

1. Agriculture means an economic activity that has the objective to produce food for

human consumption, feed for livestock, industrial plants, bio carburant and other

products through systematic cultivation of plants and animal breeding.

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2. Farm means the basic economic unit in agriculture activity and in other economic

activities related to agriculture. It is a partition of the land that is mainly utilized for the production and management of food or livestock production. The owner of the farm may

be an individual, a family, a community, or the ownership may be to a cooperative or a

company.

3. Agriculture product means a product of vegetal or animal origin that is produced in thefarm, as well as the products coming from the first phase of processing of the agriculture

products.

4. Agro-processing product means a processed agriculture product and other processed

food.

5. Agriculture policy means a state policy with objectives and direct actions that are

focused to agriculture and food markets and to farms incomes.

6. Rural development policy means a state policy that is focused to the sustainable

development of rural areas, to their economic and social convergence, as well as to theenvironment protection.

7. Agriculture strategy and Rural development strategy means the medium-term

objectives of the agriculture policy and of rural development strategy, the programming,

the measures and the way that the government will plan the financial support during adetermined period in the benefit of agriculture and rural areas.

8. Action plan is the programming document that describes how the government will

implement the strategies in different areas and during different time periods.

9. Measures of agriculture and rural development policy means legal and financial

instruments to achieve the objectives according to programming documents.

10. Less favored areas are the mountains areas and other areas where the geographical

position and other natural difficulties cause a high production cost in these areas.11. Sustainable agriculture means the agriculture that can economically and socially

survive without degrading the environment during a long period. The concept of

sustainable agriculture is based on the multi-functionality principle intending that,together with economic profitable products, the agriculture activity generates public

benefits regarding the environment, food security and food safety, as well as regional and

social convergence. These external functions of agriculture do not directly approach themarket and for that reason they must be supported by all-involving measures of

agriculture and rural development policy.

12. Public service in the field of agriculture and rural development means the government

policies to offer and guarantee the service through governmental programs.

13. Co-operative means a voluntary union of persons to realize common economic needs

and goals through a jointly business. By law, the co-operative is a legal subject.

14. The Minister is the Minister responsible for agriculture concern.

15. The Ministry is the Ministry responsible for agriculture concern.

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Article 3

Objectives of the policy for agriculture and rural development

The aim of the measures for the implementation of agriculture policy and of rural areasdevelopment policy is to achieve the general objectives, as follows:

a) Competitiveness, with the aim to enable the population that practices agriculture production activities as well as rural population to increase the competitive capacity inthe local and international markets. It can be achieved through increase of productivity

and improved efficiency of economic activities in rural areas;

b) Increase incomes and enhance prosperity of rural population by improving the working

and living conditions and creating equal chances between man and woman;

c) Economic stability, through founding the guaranty of a sustainable agriculture production;

d) The quality of food, by ensuring that the food chain has a sustainable quality and satisfies

the consumer requirements;

e) Protect and maintain the environment, through founding the guaranty that agriculture

preserves the natural resources;

f) Convergence, that aims the decrease of inequality between the development level of

different regions as well as the reduction of backwardness of less favored rural areas, by

implementing alternative and complementary activities that generate employment with

the purpose to slow down the migration rate of the population from the countryside, and by strengthening the small and medium business;

g) Food safety, by the guaranty that the food does not cause harmful effects for human

health, when it is produced and consumed according to required standards.

CHAPTER II

PROGRAMING, IMPLEMENTATION AND FINANCING OF AGRICULTURE AND

RURAL DEVELOPMENT POLICY

Article 4

National plan for agriculture and rural development

The national plan for agriculture and rural development (in the following “national plan”)includes: the strategy of agriculture and the strategy for rural development.

The national plan is based on the analyses of actual situation, the medium-term objectives of

agriculture and rural development policy, the measures, the development programs and

activities, the realization of these objectives, the following evaluation of the effectiveness, aswell as the necessary public funds that are used for the implementation of agriculture and

rural development policies.

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The national plan is elaborated by the Ministry in collaboration with other institutions that

are responsible for the rural development, and it is approved by the Council of Ministers for a period of four years.

Article 5

The action plan for the implementation of agriculture and rural development policy

In accordance with the national plan, the Council of Ministers approves the action plan for

the implementation of agriculture and rural development policy, for a period of one or moreyears.

The action plan includes a part or the whole package of the measures for the implementation

of agriculture and rural development policy.

The action plan includes:

a) The conditions, criteria, and procedures for the presentation and the implementation of general measures as well as of every specific measure of agriculture and rural

development policy;

b) The financial plan for the implementation of general measures as well as of every specific

measure of agriculture and rural development policy;

c) The means and the approaches for the implementation as well as the control for theexecution of the agriculture and rural development policy;

d) The procedures for the monitoring and evaluation of agriculture and rural development

policy.

Article 6

The program for agriculture and rural development

1. It will be established The Program for Agriculture and Rural Development (in thefollowing “The Program”). The objective of The Program is to support the development

of the agriculture in the country, to guarantee in a gradual approach the effectiveness of

the measures for agriculture and rural development policy, with a special regard on the planning and implementation of the projects and other supportive measures.

2. The financial resources for the Program Funds are the following:

a) the state budget;

b) the international donors, on the basis of the respective agreements.

The Program for Agriculture and Rural Development is part of the annual budget of theMinistry and it is administrated by it through the Payment Agency.

3. Until the establishment of the Payment Agency, the Program will be managed by theMinistry. The criteria and the means for the administration of the Program Funds will be

decided by a common order of the Ministry responsible for agriculture and the Ministryof Finance.

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Article 7

The beneficiaries of the Program Funds

The beneficiaries of the Program Funds, through measures undertaken in the framework of agriculture and rural development policy, are :

a) The farmers, the groups of farmers, the persons or legal subjects that have an agricultureactivity or any other activities related to agriculture;

b) The persons or legal subjects that have activity in the agro – processing industry;

c) The persons or legal subjects that offer service for agriculture activities and other ruralactivities.

Article 8

The applications

The application to profit the Program Funds for the agriculture and rural development policy

can be presented by a farmer, a group of farmers, and persons or legal subjects as foreseen bythis law.The beneficiaries must use the funds in accordance with the goal for which they are

accorded.

Article 9

The documents to be kept

The beneficiaries that have profited the Program Funds must keep / guarantee all thedocuments that are used for the application to profit the funds, during a following four years

period starting from the day the funds are delivered.The documents to be kept by the beneficiaries are decided by the order of Minister.

CHAPTER III

THE MEASURES OF THE AGRICULTURE POLICY

Article 10

The principles of the agriculture policy measures

The measures for the agriculture policy must be harmonized and implemented in accordance

with equality and effectiveness principles.

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Article 11

The means of the internal support

The internal support for the agriculture and agro – processing products is realized throughtwo main types of measures:

a) The measures for the markets stabilization;b) The direct payments.

Article 12

The measures for the markets stabilization

The aim of the measures for the markets stabilization is to support the agriculture in the

period of very unsustainable market conditions. The measures for the markets stabilization

are proposed in the national plan and are settled through the action plan. Different measures

can be applied in accordance with the international agreements of the country.

Article 13

The direct payments

1. The direct payments are the payments that the government gives directly to the producers

to achieve the objectives of its policy, mainly to enhance the competitiveness and toincrease the farmer’s incomes.

2. The criteria to benefit the funds and the procedure of direct payments are decided by the

order of Minister as foreseen in the point 3 of the article 6 of this law.

Article 14

The criteria for the internal support

The means of the internal support for the agriculture production must comply with thefollowing required criteria:

a) The means should not generate the price supporting effect at the producers’ level;

b) The support given to a specified product, during the respective year, should not bemore than five percent of the total value of annual production for this specified

agriculture product;c) The total support, given for a not specified product, should not be more than five

percent of the total value of agriculture production during the respective year.

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CHAPTER IV

THE MEASURES FOR RURAL DEVELOPMENT POLICY

Article 15

Aim of the measures

1. The aim of the measures for rural development policy is to support:

a) The improvement of competitiveness of agriculture and of agro – processing industryin rural areas;

b) The land management and improvement of environment;

c) The improvement of the quality of life and the encouragement of diversifiedeconomic activities in these areas;

d) The improvement of the governance and the mobilization of local development

potential in rural areas, as well as the development of local initiatives.

2. The measures are proposed by the national plan and are settled through the action plan.

3. The implementation way of these measures and the criteria for support are decided by the

order of Minister.

Article 16

Support to improve the competitiveness of agriculture and agro – processing

industry

The support to improve the competitiveness of agriculture and agro – processing industry is

based on different investment and supporting measures through projects that improve thesituation for:

a) The human resources, (improvement of knowledge);

b) Land management (land improvement, different agriculture operations, irrigation);

c) Working capital (provision with agriculture inputs, mechanization, buildings andequipments);

d) Production standards related to the environment, the food safety and animal welfare;

e) The agriculture and food chain (better marketing infrastructure, producers

associations).

Article 17

Support to land management and improvement of environment

The support for land management and improvement of environment is based on different

levels of direct payment and support through projects that enhance the sustainable use of resources and improve the situation for:

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a) The less favorable production conditions;

b) Maintenance and preservation of the environment and of biodiversity;

c) Maintenance and preservation the landscape.

Article 18

Support to improve the quality of life and to encourage diversified economic

activities in rural areas

The support to improve the quality of life and to encourage diversified economic activities inrural areas helps to maintain and improve the socio economic conditions in the most distant

rural areas that are facing the phenomenon of people migration. The support is based on

different investment measures as well as through the projects that enhance the investments inthe whole rural economy and improve the conditions for :

a) The diversification of rural economy related to agriculture and non-agriculture

activities at the farm level as well as at the level of small and medium enterprises;

b) The improvement of the quality of life through offer of service, maintain and develop

the rural heredity;

c) Training.

Article 19

Support to develop local initiatives

The support stimulates the development of local initiatives that involve the farmers, the people working in the forest management, and other rural actors that can preserve and

develop the natural and cultural local heredity, improve conscience on environment issuesand promote the typical products, the tourism and the use of renewable energy resources. The

main supporting activities in these areas include:

a) The creation of local capacity for partnership, animation and promote of absorption

capacity that can help to mobilize the local potential;

b) Promote the public – private partnership (PPP);

c) Promote the collaboration, encourage the entrepreneur capacity and promote the

insertion and offered local services.

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CHAPTER V

INSTITUTIONAL FRAME FOR AGRICULTURE AND RURAL DEVELOPMENT

POLICY

Article 20Inter-Ministerial Committee for Agriculture and Rural Development

1. The Inter-Ministerial Committee for Agriculture and Rural Development is an advisor

body of the Council of Ministers, according to the article 11 of the law nr. 9000, date30.01.2003, “For the organization and functioning of the Council of Ministers”.

2. In addition to other responsibilities that are determined in its foundation act, the Inter-

Ministerial Committee for Agriculture and Rural Development gives the opinion on

the most important decisions in the field of agriculture and rural development, andspecially:

a) proposals on the national plan for agriculture and rural development;

b) monitoring and implementation of the national plan;

c) proposals on the most important legal acts in the field of agriculture and rural

development;

d) international agreements in the field of agriculture and rural development;

e) other very important decisions in the field of agriculture and rural development.

Article 21

Payment Agency

1. The Payment Agency is a public body financed by the state budget. It has the status of

legal subject and depends from the Minister.

2. The Payment Agency has the following competences:

a) Implementation of the measures for agriculture and rural development policy;

b) Elaboration of reports and analyses related to agriculture development;

c) Establishment and functioning of integrated management and control systems;

d) Establishment and implementation of market information systems;

e) Development and maintenance of required databases;

f) Implementation of control measures and of internal audit;

g) Inspection of farmers and other subjects that have benefited the program funds for

agriculture and rural development.

The farmers, groups of farmers, individual persons and legal subjects, must enable theAgency to perform its inspections and should not oppose it to fulfill its tasks, by

making available and putting to its disposal all the documents, the data, the

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explanations and any other request presented by the Agency to achieve the full

implementation of the inspections.

3. The organization, functioning mean, nomination, freeing or dismissal of the Director

of Payment Agency, as well as the approach for staff recruitment, are determined by

an order of Council of Ministers.

CHAPTER VI

THE DATABASES AND INFORMATION SYSTEMS

Article 22

The Databases

1. The Ministry establishes and maintains:

a) The farm register;

b) The register of the producers and processors of agriculture and food products;

c) The register of the applications to profit financial support;

d) The register for land use;

e) The register for livestock;

f) The register of the traders of agriculture products and of agriculture inputs;

g) The register of less favorable areas (LFA).

2. Besides the databases mentioned in the above section, the Ministry can also establish and

maintain other databases, if it is considered necessary.

3. The databases referred by this law must be kept in electronic base.

4. The terms and the means for databases development and maintenance are determined byorder of Minister.

Article 23

Acquirement and use of other databases

In order to establish and maintain the database, the Ministry can also use other databases that

are kept from authorized public bodies, institutions, public agencies, other authorizedconcessionaire and authorities.

The administrators of these databases, of maps and orto-digital photo, must give the

information to the Ministry without payment; however the Ministry shall cover the direct

expenses for the materials, extra copies, and for data elaboration.

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Article 24

The financing of the database

The database established and maintained by the Ministry as determined by this law, arefinanced from the state budget of the Republic of Albania.

Article 25

Availability of the data

The data produced by the database in accordance with this law are public, except other data

that are considered as personal data and represent business privacy.

The data that are considered as personal data must be available to thirds in accordance withthe law for the protection of personal data.

.

Article 26

Information system on market prices

The information system on market prices consists in collection, processing and publishing of

the data on the prices of agriculture and food products.

The Ministry should determine the representative markets for the agriculture and food products, the individual persons or legal subjects that will provide actual data, and design the

type, volume, and collection frequency of the data.

The information system on market prices is established and implemented by the Ministry in

accordance with the order of Minister.

Article 27

In the farm accountability

1. In the farm accountability should be kept in a certain number of farms to help for the

approval and analyses of the measures for agriculture and rural development policy. The

participation of the farms in the system of farm accountability should be on voluntary bases.

2. The criteria to select the farms that will participate in the system of farm accountability

will be determined by the order of Minister.

3. The Ministry is responsible for the technical implementation and organization of the farmaccountability system, as well as for the collaboration with other technical institutions

and with other administrative authorities.

4. The monitoring and the implementation of the farm accountability system is performed

by a commission established by the order of Minister.

5. The data produced by the accountability system in different farms can be used in

accordance with legal acts on the protection of personal data.

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CHAPTER VII

THE ORGANIZATION FORM OF PRODUCERS, PROCESSORS AND TRADERS

OF AGRICULTURE AND FOOD PRODUCTS

Article 28

The organizations of producers, processors, and traders of agriculture and food

products

To achieve the objectives of agriculture and rural development policy, it is encouraged thefinancing of the organizations and associations of agriculture and food producers, processors

and traders that are established on voluntary basis.

Article 29

The criteria to support the organizations and associations

The criteria to be satisfied by the organizations and associations of agriculture and food producers, processors and traders to benefit the financial support, are established by the order

of Minister.

CHAPTER VIII

PUBLIC SERVICE IN AGRICULTURE AND RURAL DEVELOPMENT

Article 30The objective of public service

The objective of the public service in the field of agriculture and rural development (in the

following “public service”) is to support the implementation of the national plan by offering

long term and permanent services in the field of agriculture and rural development, when the

private initiative can not satisfy the public needs.

The public service in the field of agriculture and rural development includes:

a) Extension service in the field of agriculture and rural development;

b) Agriculture research and laboratory control / analyses;

c) Breeding service in livestock and agriculture;

d) The analyses of agriculture policies;

e) Market infrastructure service (marketing).

Article 31

Obligations of the public service

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The obligations of the public service are:

a) Execution of the determined service in a permanent and continuous way;

b) To cover by this service every farmer, group of farmers, individual persons or legalsubjects, engaged in the agriculture activity according to this law;

c) To offer the service without payment according to an approved program;d) To offer the service with payment.

The service fee offered by the public service in the field of agriculture are determined

according to the legislation in force.

Article 32

The financing of the public service

The public service in agriculture is financed by:

a) The income from the complete or partial payments of the offered service; b) The budget of the Republic of Albania.

Article 33

The program of the public service

The program of the public service in the field of agriculture and rural development is

elaborated and approved from the Ministry according to the national plan. The programshould specify:

a) The type and the volume of the public service that will be offered;

b) The manner, way, and dynamic of execution of the public service in application of

legal acts;

c) The volume and the financial means, or the co-financing of the public service.

Article 34

Monitoring of the public service

The technical and professional monitoring to verify how is offered the public service, is

accomplished by the Ministry. The Ministry can authorize an organization or other persons to

carry out the technical control.When a public authorization is given, the technical and professional monitoring will beaccomplished by the persons that have the required qualification to carry out the control in a

specific field of the public service.

The requirements to be applied for the professional qualification of the controllers will be

determined by the Minister.

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CHAPTER IX

THE SUPPORT FOR RESEARCH, EDUCATION AND TRAINING

Article 35

Agriculture research

According to the national plan, the Minister practice his competences in collaboration with

respective ministries, as well as with the institutions of education and their scientific

structures, to co-finance the research and the development projects in the field of agricultureand rural development and the corresponding infrastructure.

Article 36

Education and training to satisfy the need of agriculture and rural development

1. The Ministry should propose and undertake initiatives on different education and training

activities to satisfy the need of agriculture, agro-processing and of rural areas, incollaboration with universities and other agriculture high schools.

2. The Ministry can co-finance the initiatives for the establishment of centers for practical

implementation of the education and training programs in the field of agriculture and

rural development.

3. The beneficiaries of these training programs are the farmers, the workers and thespecialists of agriculture and agro-processing industry.

Article 37

Analytic and development studies

The Ministry carries out analytic and development studies in collaboration with universities

and institutions and their scientific structures, mainly in the field of:

a) Perform economic and other analyses to evaluate the impact in the field of agricultureand agro-processing industry;

b) Fulfill analyses and planning activities in the field of agriculture and agro-processing

industry;

c) Accomplishment of important responsibilities for the training and monitoring of

development issues in the field of agriculture, agro-processing industry and rural

development.

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CHAPTER X

ADMINISTRATIVE INFRACTIONS

Article 38

Cases of administrative infractions

If not considered a penal act, the following are administrative infractions:

1. The funds given to the beneficiaries are not used according to disbursement goal.

2. The documents used to profit the funds are not kept during the foreseen four years

period.

Article 39

Sanctions

1. For the administrative infractions determined in the article 38, point 1, the inspector of the Payment Agency applies the penalty from 30.000 to 40.000 lek and the

replacement of the profited funds.

2. For the administrative infractions determined in the article 38, point 2, the inspector

of the Payment Agency applies the penalty from 10.000 to 15. 000 lek.

Article 40

The complaint

1. The infracteur can comply to the Payment Agency within ten days from the

application of the penalty. The Payment Agency checks the compliant and inform thecomplainant within five days.

2. Within ten days after information from the Payment Agency, the complainant can

comply the decision to the Minister who must decide, within 15 days from the date

the compliant reception, whether to apply or to abolish the penalty.

3. The complainant can comply the decision of the Minister to the competent districttribunal, within five days.

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Article 41

Penalty collection

1. The penalties for administrative infractions, according to this law, are paid from theinracteur to the account of income of the state budget, within 30 days from the date

that the decision is enforceable.

2. After the term is over and within a limit of 30 days, the infracteur is induced to pay,

besides the penalty, an indemnity equal to two percent of the penalty per day.

Article 42

Gains from penalty collection

The total gains (100 %) from penalty collection go the state budget.

CHAPTER XI

FINAL DISPOSITIONS

Article 43

Legal acts

1. The Council of Ministers is charged to elaborate the legal acts related to the articles:

4, 5, and 21 point 3.

2. The Minister is charged to elaborate the legal acts related to the articles: 6, 9, 15 point3, 22 point 4, 26, 27 point 4, 29, and 34.

Article 44

Enforcement of the law

This law is enforced 15 days after publication in the Official Journal.

HEAD OF PARLIAMENT

JOZEFINA TOPALLI (ÇOBA)

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Report:

This law is entirely based on four principle EC Regulations regarding the CommonAgriculture Policy (CAP):

- Council Regulation (EC) No 1698/2005 of 20 September 2005 on the support for

rural development by the European Agricultural Fund for Rural Development(EAFRD))

- Council Regulation (EC) No xxxx/2007 of 11 June 2007) on establishing a common

organization of agricultural markets and on specific provisions for certain agricultural

products.

- Council Regulation (EC) No 1782/2003 of 29 September 2003 (consolidated version) establishing common rules for direct support schemes under the common agricultural

policy and establishing certain support schemes for farmers.

- Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the

common agricultural policy-CAP.

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