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1.2 trillion RUB have been channelled to support agriculture over the last 6 years

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Over 1.2 trillion RUB have been channelled from the federal budget to support agro-industrial complex, said Dmitry Medvedev, Prime Minister in an annual address at the State Duma. According to him, it is through state support the production of food grew 20% since 2012, record harvests are noted, the dependence of import decreased.

“This remarkable growth is a result of unprecedented support to agriculture, the attention paid to its development. Over 1.2 trillion RUB have been channelled from the federal budget”, stated Medvedev. The agrarians have access to concessional loans at 5% interest rate, the regions now can determine the priority agriculture sectors to be supported. Besides the farmer grants has increased.

Farm machinery production has grown three-fold for the last three years, the share of domestically produced agri-machinery amounted to 56%. “That is all became possible due to state support measures for farmers who purchased Russian machinery at a discounted price”, informed Mr. Medvedev. According to the Ministry of Agriculture, in 2017 the number of purchased harvesters increased 0,5% up to 6,2k units. Last year energy supplies for agrarians grew 0,4% to 149,2 HP per 100ha.

Russian agriculture will preserve growth rates in 2018, said Anatoly Kutsenko, Director of the Department for Economy, Investment, Agriculture Market Regulation. According to him, federal spending within the national programme amounted to 218,1bn RUB in 2016, 233,8bn RUB in 2017, including 76,3bn RUB (33%) to support investment activity in agriculture (reimbursement of interest rate on loans, partial reimbursement of CAPEX, subsidization of soft investcredits), 58,3bn RUB (25%) for the development of agriculture sectors (unified subsidy, greenbox subsidies). Mr. Kutsenko reminded that in 2018 a total of 242bn RUB are planned to be allocated to support agriculture. Moreover, according to Minagri’s head Alexander Tkachev additional 30bn RUB will be channelled. “Yesterday I discussed the current situation with the President. He agreed on the matter”, said Mr. Tkachev and added that the funds would be aimed at the development of rural areas, concessional lending and equipment retrofit.

Source: Agroinvestor

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