Establishment and operation of producer associations

Service Description

The support within the framework of the support guideline "Foundation and activity of producer associations" of the Thuringian Ministry of Infrastructure and Agriculture (TMIL) aims at improving the structures for the marketing of agricultural products and thus contribute to strengthening the position of producers in the food chain.

Support for the establishment and operation of producer associations is required because producer associations play an important role in bundling supply, improving marketing, planning and adjusting production to demand, optimizing producer costs or stabilizing producer prices.

The following producer associations areeligible:

  • producer organizations or associations recognized under agricultural market structure law
  • Producer associations for quality agricultural products formally recognized on the basis of a business plan.

Eligible costs are:

  1. Formation costs,
  2. Personnel and business costs,
  3. costs of office equipment, including hardware and software.

Grants are awarded to producer groups or their associations as a lump sum aid in annual installments for the first five years following the formal recognition of the producer group.

In the first and second years , grants may be awarded up to 60%,
in the third year up to 50%,
in the fourth year, up to 40%, and in the fifth year, up to 20% of the documented start-up and/or organizational costs (producer groups for agricultural quality products 15 percentage points more each year).

Annual grant: Maximum of 100,000 euros

Total amount of grants for five-year funding period: Maximum 400,000 euros.

The amount of grants for organizational costs may not exceed the following percentage of the producer group's annual proven sales revenue:

5% in each of the first two years after recognition, 4% in the third year, 3% in the fourth year, and 2% in the fifth year.

(Producer groups for agricultural quality products 2 percentage points more in each case).

Source: Zuständigkeitsfinder Thüringen (Linie6PLus)

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