Luxembourg's Ministry of Agriculture, Food and Viticulture has reported that the Government Council (cabinet) recently adopted the bill establishing financial aid for the construction of horticultural greenhouses, thus paving the way for the legislative procedure.
Prepared at the initiative of the Minister of Agriculture, Food and Viticulture, Martine Hansen, this bill aims to establish a one-off capital subsidy for farmers whose objective is to increase national production of greenhouse fruits and vegetables. According to Minister Hansen, "it is about giving a boost to the production of fruits and vegetables under glass in Luxembourg in order to meet the food needs of the national population, and to diversify Luxembourg agriculture, even if we are far from any ambition of food sovereignty".
For certain vegetables such as cabbages, salads or carrots, the self-sufficiency rate reaches 15% at best. For strawberries, tomatoes and onions, national production does not even reach 1% of the quantity consumed. The ministry thus described the potential as "enormous", adding that the public appreciates fresh fruits and vegetables grown in Luxembourg, as well as short routes.
The prospective subsidies are intended for active farmers wishing to set up horticultural greenhouses to produce, store or package fruit and vegetables for sale, and who respond to a call for projects launched by the Ministry of Agriculture, Food and Viticulture. Only economically viable, sustainable projects with guaranteed funding will be selected.
The financial aid will be awarded following one or more calls for projects and until the total budget of €20 million is exhausted. Eligible investments must be between €1-12 million excluding VAT and the aid rate is 40%, increasing to 55% for young farmer benificiaries. The subsidies awarded will not be cumulative with other aid covering the same eligible costs.
Minister Hansen added that the goal was to strengthen the diversification potential of Luxembourg's agriculture.
