Government reduces funds for farmers, increases ADF by 75 million euros

The government has reduced the funds foreseen for rural development and support for farmers, while increasing the budget of the Albanian Development Fund by 7.5 billion lek, or about 75 million euros.

According to data from the budget review, the fund for the rural development program and support for agricultural, livestock, agro-industry and marketing production has been reduced by 113.7 million lek, almost 1.5 million euros.

The program's funding has been reduced from around 7.69 billion lek, which was foreseen in the initial budget, to around 7.58 billion lek after the changes. In percentage terms, the cut amounts to 1.5%.

The program includes policies and measures aimed at supporting farmers and livestock keepers, developing the agro-processing industry, increasing domestic production, and improving the marketing of agricultural products.

Although the decrease is relatively limited in relation to the general fund, it comes at a time when some of the main indicators of agriculture and livestock are declining.

According to INSTAT data for 2025, wheat production fell by 10.1%, potato production by 7.2%, while fruit tree production shrank by 12.8%. Olive production fell by 2.3%, while greenhouse production was 0.9% lower compared to the previous year.

Weaknesses have also been seen in livestock. In 2024, the number of sheep fell by 3.8%, the number of goats by 2.2% and that of pigs by 9.4%. Total milk production was reduced by 2.7%, while meat production in live weight fell by 3.8%.

7.5 billion lek added to the Albanian Development Fund

In the same budget review, funding for the Albanian Development Fund has been significantly increased. The institution’s budget has been increased by 7.5 billion lek, reaching 32.3 billion lek, from around 24.8 billion lek that was initially foreseen. The increase represents a 30.2% expansion of the total funding of the Albanian Development Fund. The majority of the additional funds are concentrated in the general item “Development Programs”.

Funding for this program has increased by 5.5 billion lek, from about 14.9 billion lek to 20.4 billion lek. Compared to the initial budget, the increase is 36.9%.

The “Development Programs” program alone benefits from about 73% of the total allocation for the Albanian Development Fund. This is a broad budget item that can include infrastructure and development projects implemented by the ADF, such as road rehabilitation, urban redevelopment, the arrangement of squares and public spaces, as well as investments in areas with tourist and economic potential.

Additional funding has also been provided for the “Local and Regional Infrastructure” program. Its budget has increased by 1.4 billion lek, or 18.9%, from about 7.4 billion lek to 8.8 billion lek.

Meanwhile, the “100 Villages” program benefits from an additional 600 million lek. The total fund for this program increases from 2.5 billion lek to 3.1 billion lek, or by 24% compared to the initial planning./ Monitor