Circular 02/2020/TT-BNNPTNT on criteria of farm economy

CIRCULAR

Prescribing criteria of farm economy^[1]

Pursuant to the Government’s Decree No. 15/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development, and the Government’s Decree No. 116/2018/ND-CP of September 7, 2018, amending and supplementing a number of articles of Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development;

At the proposal of the Director of the Department of Cooperatives and Rural Development,

The Minister of Agriculture and Rural Development promulgates the Circular prescribing criteria of farm economy.

Article 1.Scope of regulation and subjects of application

1. Scope of regulation:

This Circular prescribes criteria of, and reporting on, farm economy.

2. Subjects of application:

a/ Individuals and heads of households engaged in agricultural production and business (crop production, animal husbandry, forestry, aquaculture, and salt production) and satisfying criteria of farm economy prescribed in this Circular;

b/ State management agencies, and other related organizations and individuals.

Article 2.Classification of farms

1. A specialized farm shall be identified based on the field of agricultural production such as crop production, animal husbandry, forestry, aquaculture, and salt production, which accounts for 50% of its annual production value structure. Specialized farms are classified into:

a/ Crop production farms;

b/ Livestock production farms;

c/ Forestry farms;

d/ Aquaculture farms;

dd/ Salt production farms.

2. A multi-purpose farm is a farm in which no agricultural production field accounts for more than 50% of the annual production value.

Article 3.Criteria of farm economy

1. For specialized farms:

a/ A crop production farm must have an annual average production value of at least VND 1 billion and a total production land area of at least 1 hectare;

b/ An aquaculture farm must have an annual average production value of at least VND 2 billion and a total production land area of at least 1 hectare;

c/ A livestock production farm must have an annual average production value of at least VND 2 billion and reach the livestock farming scale prescribed in Article 52 of the Law on Animal Husbandry and guiding documents.

d/ A forestry farm must have an annual average production value of at least 1 billion and a total production land area of at least 10 hectares;

dd/ A salt production farm must have an annual average production value of at least 0.35 billion and a total production land area of at least 1 hectare.

2. A multi-purpose farm must have an annual average production value of at least VND 2.0 billion and a total production land area of at least 1 hectare.

Article 4.Methods for calculation of farms’ total production land area and production value

1. The total production land area of a farm prescribed in Article 3 of this Circular is the total land area which is lawfully used by the farm for production and business purposes in accordance with the land law, including land for crop cultivation, animal husbandry, forestry production, aquaculture and/or salt production, and land for building infrastructure facilities serving production activities of the farm at the time of declaration.

2. The annual production value of a farm is the production value recorded by the farm in at least 1 year among 3 years preceding the year of declaration; production value shall be calculated as the sum of production values of all products harvested or exploited in the year.

For a newly established farm which has not yet had harvested products, production value shall be estimated based on its production plan and actual performance.

Article 5.Monitoring and making statistics of, and reporting on, farm economy

1. Commune-level People’s Committees shall:

a/ Guide and disseminate information on farm economy criteria to individuals and heads of households engaged in agricultural production and business activities in their localities;

b/ Monitor, and make statistics and update changes of, farm owners, production land areas, and types of farms;

c/ Open books for monitoring the development of farm economy in their localities according to the form provided in Appendix I to this Circular.

2. Reports on farm economy shall be made according to the form provided in Appendix II to this Circular as follows:

a/ Annually, commune-level People’s Committees shall sum up and submit reports on the situation of farm economy in their locality in the year to district-level People’s Committees; district-level People’s Committees shall then sum up and submit reports to provincial-level People’s Committees (via provincial-level Departments of Agriculture and Rural Development);

b/ Before December 19 every year, provincial-level Departments of Agriculture and Rural Development shall sum up and submit reports on the situation of farm economy in their localities in the year to provincial-level People’s Committees and the Ministry of Agriculture and Rural Development;

c/ Report submission and receipt methods and data cutoff time must comply with Clause 4, Article 8 and Clause 4, Article 12 of the Government’s Decree No. 09/2019/ND-CP of January 24, 2019, prescribing the reporting regimes applicable to state administration agencies.

Article 6.Implementation responsibilities

1. The Department of Cooperatives and Rural Development shall organize the implementation of this Circular and, periodically and when so requested, sum up and submit reports to the Ministry of Agriculture and Rural Development.

2. Provincial-level People’s Committees shall implement this Circular in their localities.

3. Farm owners shall:

a/ Declare information on their farms according to the form provided in Appendix III to this Circular and send these declarations to commune-level People’s Committees before November 15 every year; and be held responsible before law for the truthfulness and accuracy of declared information;

b/ Organize production and business activities in conformity with local land-use master plans and plans; and comply with the laws on product and goods quality, food safety, epidemic safety, and environmental protection.

Article 7.Effect

1. This Circular takes effect on April 14, 2020, and replaces the Ministry of Agriculture and Rural Development’s Circular No. 27/2011/TT-BNNPTNT of April 13, 2011, on criteria of farm economy and procedures for grant of certificates of farm economy.

2. Farm economy certificates granted under the Ministry of Agriculture and Rural Development’s Circular No. 27/2011/TT-BNNPTNT of April 13, 2011, on criteria of farm economy and procedures for grant of certificates of farm economy, are no longer valid on the effective date of this Circular.

3. The farm economy criteria prescribed in this Circular shall serve as a basis for identification of beneficiaries of the State’s policies applicable to farm economy.

4. Any problems arising in the course of implementation of this Circular should be reported by agencies, organizations, individuals, and households engaged in agricultural production and business to the Ministry of Agriculture and Rural Development for study and settlement according to regulations.-

For the Minister of Agriculture and Rural Development
Deputy Minister
TRAN THANH NAM

* The appendices to this Circular are not translated.