Decision No. 62/2013/QD-TTg on policies to encourage the development of cooperation and linkage in agricultural production tied to the consumption of agricultural products and the construction of large fields

Pursuant to …;

Regarding policies to encourage the development of cooperation and linkage in production

linked with the consumption of agricultural products and the construction of large-scale fields

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Minister of Agriculture and Rural Development;

The Prime Minister issues this Decision on policies to encourage the development of cooperation and linkage in production linked with processing and consumption of agricultural products and the construction of large-scale fields.

Article 1. Scope of Regulation

This Decision stipulates certain preferential policies and support from the State aimed at encouraging linkage in production linked with processing and consumption of agricultural products within large-scale field projects according to planning and approved by competent authorities.

Article 2. Applicability

Domestic enterprises; households, individuals, farms (hereinafter collectively referred to as farmers); cooperatives, associations of cooperatives (hereinafter collectively referred to as farmer representative organizations).

Article 3. Explanation of Terms

1. Large-scale fields are a method of organizing production based on cooperation and linkage between farmers and enterprises, farmer representative organizations in production linked with processing and consumption of agricultural products in the same area, with a large scale of land, aiming to produce concentrated, high-quality agricultural product yields, enhancing the competitiveness of agricultural products in the market to improve production efficiency and increase income for farmers and participating partners.

2. Forms of cooperation and linkage specified in this Decision include: Cooperation and linkage among farmers, farmer representative organizations, and enterprises through contracts providing input services linked with production, consumption, and processing of agricultural products within large-scale field projects that have been approved by competent authorities.

Article 4. Preferential and Support Policies for Enterprises

1. Content of preferences and support.

a) Exemption from land use fees or land rental fees when the State allocates land or leases land for the implementation of projects to build processing plants, warehouses, housing for workers, and public service facilities serving large-scale field projects.

b) Priority participation in export contracts for agricultural products or government temporary storage programs for agricultural products.

c) Support for part of the costs to implement planning, paddy field improvement, completion of internal transportation and irrigation systems, and electricity systems serving agricultural production within large-scale field projects.

d) Support up to 50% of the costs for organizing training and technical guidance for farmers producing agricultural products under contracts, including costs for materials, food, accommodation, travel, and classroom organization.

2. Conditions for enjoying preferences and support.

a) Enterprises must have direct contracts or linkages with other enterprises to supply inputs and services for production, linked with purchasing agricultural products from farming households or farmer representative organizations within large-scale field projects.

b) Possess raw material areas ensuring at least 50% of raw material needs and having drying, storage, and processing facilities meeting enterprise production and business requirements under contracts.

c) Have plans to implement the contents of preferences and support stipulated in Clause 1 of this Article and approved by competent authorities.

Article 5. Preferential and Support Policies for Farmer Representative Organizations

1. Content of preferences and support.

a) Exemption from land use fees or land rental fees when the State allocates land or leases land for the implementation of projects to build drying, processing, and storage facilities serving large-scale field projects.

b) Priority participation in export contracts for agricultural products or government temporary storage programs for agricultural products.

c) Support up to 30% in the first year and 20% in the second year of actual costs for plant protection chemicals, labor, and machine rental to provide common plant protection services for members.

d) Provide once-off support up to 50% of the costs for organizing training for cooperative and association cooperative staff on management, economic contracts, and production techniques; including costs for food, accommodation, purchasing materials, tuition fees according to the regulations of the training institution.

đ) Support up to 100% of the costs for organizing training and technical guidance for farmers producing agricultural products under contracts; including costs for materials, food, accommodation, travel, renting conference halls, lecturer fees, and site visits.

2. Conditions for enjoying preferences and support.

a) Have contracts and implement input supply for production or organize production or consumption of agricultural products for member households and farmers in the area.

b) Have plans to implement the contents of preferences and support stipulated in Clause 1 of this Article and approved by competent authorities.

Article 6. Preferential policies and support for farmers

1. Content of preferences and support.

a) To be trained and guided free of charge on production techniques and market information related to the type of product participating in large-scale fields.

b) To be supported once with a maximum of 30% of the cost of purchasing high-quality crop seeds from certified seeds for planting the first crop in the large-scale field project.

c) To be supported with 100% of storage fees at enterprises for a maximum period of three months in cases where the Government implements temporary storage of agricultural products.

2. Conditions for enjoying preferences and support.

Farmers commit to producing and selling agricultural products according to the signed contracts and such commitment must be confirmed by competent authorities.

Article 7. Support funds and principles of application

1. Support funds.

a) The central budget supports localities through direct programs and projects and integrates relevant programs and projects.

b) The Chairpersons of People's Committees of provinces and centrally-administered cities shall decide specific levels of support based on the specific conditions of their localities, current mechanisms and policies, local budgets, support from central programs and projects, and other legitimate sources of funding, for the contents stipulated in this Decision.

2. Principles of applying preferential policies and support.

In cases where multiple support policies from different programs and projects overlap during the same period, beneficiaries may choose to apply the most beneficial policy.

Article 8. Handling of Contract Violations

1. Parties violating the contract in the linkage will be handled according to current laws.

2. Enterprises, farmer households, and farmer representative organizations that have received state support but violate the signed linkage contracts without valid reasons will have their support revoked and will not be considered for support in the following year.

Article 9. Implementation Organization

1. The Ministry of Agriculture and Rural Development:

a) Issuing criteria for large-scale fields;

b) Guiding planning and organizing the implementation of building concentrated agricultural production areas according to the large-scale field model;

c) Regularly inspecting, supervising, summarizing, and reporting to the Prime Minister on the implementation of this Decision.

2. Ministry of Industry and Trade: Supporting enterprises participating in promoting the consumption of agricultural products from large-scale field projects.

3. Provincial People's Committees and Municipal People's Committees under the Central Government:

a) Directing the construction and implementation of large-scale field project plans in localities and reviewing and approving them within their authority;

b) Based on the policies stipulated in this Decision, current policies, and the local budget capacity, issuing specific support levels;

c) Directing specialized agencies, political-social organizations, and professional associations to guide and provide legal advice to farmers and cooperatives on procedures and formalities for signing, terminating contracts, or resolving disputes arising during contract implementation according to the law.

4. Associations, unions, political-social organizations: Participating in implementing activities related to information dissemination, propaganda, and supporting farmers' cooperation and linkage in production with enterprises and other economic partners, protecting members' interests during the process of signing and implementing linkage contracts.

Article 10. Provisions on implementation

1. This Decision takes effect from December 10, 2013.

2. This Decision replaces Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Prime Minister regarding policies to encourage the sale of agricultural products through contracts. Enterprises and farmers, farmer representative organizations that have signed contracts according to Decision No. 80/2002/QĐ-TTg before this Decision takes effect shall continue to implement it or have the right to request benefits and support according to this Decision for the remaining time of the contract.

3. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decision./..