Dear Readers, in this article, we will try to inform you about the Agricultural and Rural Development Support Institution (IPARD), which we believe plays a significant role in the agricultural sector.

WHAT IS IPARD?

The main objective of IPA (Instrument for Pre-Accession Assistance) can be explained as preparing candidate countries for the programming, management, and implementation of structural and cohesion funds after membership, thus ensuring higher coherence and coordination of EU financial assistance. In short, IPA financially supports candidate countries to prepare for EU membership.

Five components of IPA and the managing authorities responsible for these components were determined for candidate and potential candidate countries:

These authorities are as follows:

• Transition Period Support and Institutional Structuring – Ministry of European Union
• Regional and Cross-Border Cooperation – Ministry of European Union
• Regional Development
• Environment Operational Program – Ministry of Environment and Urbanization
• Transport Operational Program – Ministry of Transport, Maritime Affairs, and Communications
• Regional Competitiveness Operational Program – Ministry of Science, Industry, and Technology
• Human Resource Development – Ministry of Labor and Social Security
• Rural Development – Ministry of Agriculture and Forestry

IPARD is a grant created by the European Union (EU) to support candidate and potential candidate countries. It aims to elevate agricultural and rural development businesses to relevant EU standards. IPARD is a non-repayable grant managed by the Public Legal Entity of the Agricultural and Rural Development Support Institution (TKDK) and the European Union Commission (EU 1085/2006 COUNCIL REGULATION).

Since 2007, the EU has consolidated financial assistance for candidate and potential candidate countries under a new financial perspective, termed the Instrument for Pre-Accession Assistance (IPA). Previously, pre-accession assistance was provided under various programs such as PHARE, ISPA, CARDS, and SAPARD. With IPA, these funds were combined into a single framework for the 2007-2013 period, covering candidate countries like Turkey, Croatia, and Macedonia, and potential candidate countries such as Albania, Bosnia and Herzegovina, Serbia, Montenegro, and Kosovo.

To carry out these activities, the Turkish Grand National Assembly accepted the Law on the Establishment and Duties of the Agricultural and Rural Development Support Institution (Law No. 5648) on May 4, 2007, and it was published in the Official Gazette on May 18, 2007, entering into force.

IPARD supports are non-repayable, but they are conditional and subject to obligations. After the decision to provide support, grants are given without repayment as long as the terms of the contract signed are adhered to. If the terms of the contract are violated, the financial support provided may be reclaimed, with possible penalties or delay fees.

What are the objectives of rural development policies in the European Union?

• Strengthening the agricultural and forestry sectors.
• Increasing the competitiveness of rural areas.
• Protecting the environment, rural heritage, and natural resources.

What criteria are required for project applications?

• Natural and legal persons recognized by national laws can apply.
• The project owner must not be over 65 years of age when applying for the grant.
• Registration in the ministry’s system is required.
• If not registered in the Farmer Registration System or any other relevant system, applicants must register before the application deadline and submit the relevant documents with the grant application.
• A business plan must be prepared in the format requested by the Agricultural and Rural Development Support Institution.
• The business plan must show that the project will ensure the economic sustainability of the business at the end of the project.
• The project owner must have no outstanding tax or social security debts when submitting the application.
• The business must employ fewer than 250 people and have an annual turnover or balance sheet of no more than 25 million TL.
• Support for the establishment of new businesses is only available if there is no overcapacity in the province.
• The applicant must commit to maintaining the investment for five years after the payment and not making significant changes.

What expenditures are supported under the IPARD Program?

There are four types of eligible expenditures:

1. Construction work,
2. Purchase of machinery and equipment,
3. Service procurement,
4. Project visibility expenditures.

The following expenditures are not eligible:

• Purchase of land and existing buildings,
• Purchase of second-hand machinery and equipment,
• Purchase of live animals,
• Purchase of plant rights, annual plants, and their sowing,
• Taxes and duties including VAT and ÖTV (special consumption tax),
• Customs duties and import taxes,
• Operational expenses,
• Maintenance and depreciation costs,
• Rent expenses,
• Bank fees, guarantee fees, and similar charges,
• Foreign exchange conversion fees, charges, and exchange losses,
• Fines, penalties, and legal costs,
• Contributions in kind from the beneficiary,
• Any costs arising from the administration, management, and implementation of the grant by the authorities, including overhead costs, rent, and salaries of staff employed in management, implementation, monitoring, and control.

Insurance expenses are not considered eligible expenditures under the IPARD Program. In-kind contributions will not be accepted as eligible costs and will not be considered as co-financing by the beneficiary.

Which provinces are covered by the IPARD Program?

1. First Application Period: (20 provinces)

Afyon, Amasya, Balıkesir, Çorum, Diyarbakır, Erzurum, Hatay, Isparta, Kahramanmaraş, Kars, Konya, Malatya, Ordu, Samsun, Şanlıurfa, Sivas, Tokat, Trabzon, Van, Yozgat.

2. Second Application Period: (22 provinces)

Ağrı, Aksaray, Ankara, Ardahan, Aydın, Burdur, Bursa, Çanakkale, Çankırı, Denizli, Elazığ, Erzincan, Giresun, Karaman, Kastamonu, Kütahya, Manisa, Mardin, Mersin, Muş, Nevşehir, Uşak.

Before concluding, we would like to emphasize the importance of complying with the terms of the signed contracts under the IPARD program. With the increase in the program’s usage, it is expected that there will be numerous violations of contract terms, and many legal disputes may be brought before the courts.

Av. Şefik ZİROĞLU – Stj. Av. Işıl ÇETİNKAYA