In the context of the fight against the COVID-19 pandemic, the Ministry of Agriculture, Viticulture and Rural Development has set up a new quarterly financial aid for pig farms: "Support to enterprises in difficulty in the pig sector in the context of the fight against COVID-19".

This financial aid can be claimed for the months:

• from October 2020 up to and including December 2020; and
• from January 2021 up to and including March 2021.

Applications should be submitted to the Rural Economy Department of the Ministry of Agriculture, Viticulture and Rural Development.

Who is concerned

Farms active in the pig sector.

Prerequisites

Eligibility requirements

The company must meet the following eligibility requirements:

• have suffered a loss of turnover of 30 % or more calculated on the basis of stable quarterly production (see "Calculation examples" below);
• if it employs staff: be properly registered with the Joint Social Security Centre (CCSS);
• be a primary business activity, i.e. :
  • the total standard production achieved by the establishment in 2020 must be at least EUR 75,000; and
  • the main income comes from pig production: i.e. at least 50% of the total standard production of the farm comes from pig farming.

The loss in turnover is assessed by comparing turnover for the quarter covered by the application with the same quarter of the previous year. Example:

• the 4^th quarter (October to December) 2020 compared to the 4^th quarter (October to December) 2019;
• the 1^st quarter (January to March) 2021 compared to the 1^st quarter (January to March) 2020.

Calculation examples

1. The number of pigs slaughtered is unchanged between the 2 periods.
   • Request for aid for the 4^th quarter of 2020 with a turnover of EUR 69,660, i.e. 600 pigs sold at 90 kg/pig x EUR 1.29/kg including tax:
     • the weight stated is the quarterly average weight of pigs slaughtered during the 4^th quarter of 2020;
     • the price stated is the quarterly average price for pigs slaughtered during the 4^th quarter of 2020;
   • Turnover for the reference quarter (4^th quarter 2019) is equal to EUR 102,600, i.e. 600 pigs sold at 90 kg/pig x EUR 1.90/kg including tax:
     • the weight stated is the quarterly average weight of pigs slaughtered during the 4^th quarter of 2019;
     • the price stated is the quarterly average price for pigs slaughtered during the 4^th quarter of 2019;

   Comparison of turnover for the quarter covered by the application (4^th quarter 2020: EUR 69,660) with the turnover for the reference quarter (4^th quarter 2019: EUR 102,660): the loss of turnover is 32.1 %, therefore the application is eligible.

2. The number of pigs slaughtered changes between the 2 periods
   • Request for aid for the 1^st quarter of 2021 with a turnover of EUR 65,274, i.e. 550 pigs sold at 92 kg/pig x EUR 1.29/kg including tax:
     • the weight stated is the quarterly average weight of pigs slaughtered during the 1^st quarter of 2021;
     • the price stated is the quarterly average price for pigs slaughtered during the 1^st quarter of 2021;
   • Turnover for the reference quarter (1^st quarter 2020) is equal to EUR 102,600, i.e. 600 pigs sold at 90 kg/pig x EUR 1.90/kg including tax (note: the number of pigs slaughtered is different between the 2 quarters, i.e. 600 compared to 550):
     • the weight stated is the quarterly average weight of pigs slaughtered during the 1^st quarter of 2020;
     • the price stated is the quarterly average price for pigs slaughtered during the 1^st quarter of 2020;

Calculation of turnover at constant production for the 1^st quarter 2021:

600 pigs sold at 92 kg/pig x EUR 1.29/kg incl. VAT = EUR 71,208

Comparison of turnover for the quarter covered by the application (1^st quarter 2021: EUR 71.208) with turnover for the reference quarter (1^st quarter 2020: EUR 102,600): the loss of turnover is 30,6 %, therefore the application is eligible.

Remarks

• for "breeder" farms (without fattening), the turnover results from the sale of piglets and sows;
• for the "breeder" and " fattening" farms, the turnover results from the sale of slaughtered pigs and piglets as well as from the sale of sows;
• for "other" farms, the turnover results from the sale of slaughtered pigs or from the sale of reared piglets.

Eligible costs

The following costs are eligible:

• payroll expenses;
• financial charges;
• costs directly related to the management of the aid application file(s).

Deadlines

Applications for financial aid must be submitted:

• no later than 1 July 2021 inclusive for the application in relation to the 4^th quarter 2020; and
• no later than 1 October 2021 inclusive for the application in relation to the 1^st quarter 2021.

How to proceed

Filing an application

The aid application "support to farms in difficulty in the pig sector in the context of the fight against COVID-19" is to be submitted using the application form. This form must be:

• completed, dated and signed by a person authorised to commit the farm;
• sent to the Rural Economy Department of the Ministry of Agriculture, Viticulture and Rural Development:
  • by post to the following address:
    Service d'économie rurale
    B.P. 2102
    L-1021 Luxembourg
  • or by email to the following address: aide2020@ser.etat.lu.

Supporting documents

The application must be accompanied by the following:

• a balance sheet for 2019;
• documents on the turnover achieved for the eligible months in 2019 and 2020 or in 2020 and 2021, i.e.:
  • bills of delivery indicating the exact date of delivery of the pigs, sows or piglets;
  • sales invoices/slaughterhouse statements showing weights and prices or price per piece, if applicable;
  • the VAT declaration for farms not covered by the flat-rate scheme;
• if short-time working benefits are paid: bank statements showing the amounts received during the quarter covered by the application in connection with short-time working;
• if the farm employs staff:
  • a copy of the employees' pay slips and copies of their wage transfers;
  • a summary statement of the monthly employer's social security contributions for employees during the eligible months.
    The precise data on the employer's monthly social security contributions paid for employees during the eligible months will be requested at a later date if the criterion of a drop in turnover is met. The applicant for aid will be informed of the details in due course;
• if the farm has financial charges (interest and costs related to credit lines):
  • a certificate from the bank stating the financial charges for the eligible months;
• a bank account identification document;
• the invoice for costs directly related to the preparation of the aid application file and the bank statement proving payment;
• a signed declaration of honour on the accuracy of the information provided.

Duration of aid

A separate application must be made for each quarter, i.e. the farm must submit a new application for each quarter.

Eligible amount

Calculation of the eligible amount

The eligible amount is calculated as follows:

• a lump sum of EUR 4,000 per quarter and per farm;
• 75 % of the eligible costs for breeder farms with or without fattening and 50 % of the eligible costs for all other pig farms with a maximum of EUR 16,000 per quarter;
• a maximum of EUR 20,000 is granted (EUR 4,000 + EUR 16,000) per quarter.

Therefore, it is necessary to:

• not take into account any sums received in connection with short-time work for one or more previous months: any such sums must therefore be deducted;
• take into account the sums to be received in connection with short-time work for the month relating to the application: any such amounts must therefore be declared and supporting documents must be provided.

Type of aid

This is a direct non-repayable financial aid.

Good to know

To make this procedure easier to understand, an example is given below:

• farm eligibility simulator in Excel format.

Forms / Online services

Who to contact