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How Russian government support agricultural business

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How Russian government support agricultural business.

Many investors are interested in the question of how Russian government support agricultural business in Russia. This year, over 303 billion rubles will be allocated to support agriculture. – almost 62 billion rubles, more than the planned amount of funding in 2018. However, market participants are preparing for the fact that the size of subsidies will become smaller due to changes in the rules for their distribution, and do not understand the logic of some innovations.

how Russian government support agricultural business

In 2019, Russian government are planned to allocate 303.6 billion rubles from the federal budget to support agriculture business in Russia. Against about 242 billion rubles originally envisaged in 2018. At the same time, the Ministry of Agriculture introduced amendments to the system of subsidies. In particular, approaches to the reimbursement of part of the direct costs incurred during the implementation of projects, to subsidizing agricultural insurance, to unrelated support in crop production have been adjusted. In addition, the format of the “single” subsidy will change. In the updated state program for the development of the agro-industrial complex, new directions have also appeared: federal projects to create a support system for farming and the development of rural cooperation, as well as digital agriculture. True, the latest funding for this year is not provided. But in comparison with 2018, export support was significantly increased – from 1.3 billion rubles. up to 38.8 billion rubles. In general, 2019 should be a transitional year in improving the state support system, says the Ministry of Agriculture.

How Russian government support agricultural business and development of this economy sector.

Since 2020, the agro-agency plans to combine a “single” subsidy, unrelated hectare support and payments to increase productivity in dairy farming (for marketed milk) and divide them into two parts – compensating and stimulating. The first is needed to maintain the results already achieved in the industry, the second is for the further point-by-point development of the production of a particular product. If a region fully provided itself with meat, milk, vegetables, then in these areas it does not need such a compensating part of the support as those who have not yet reached the planned targets, explains Elena Fastova, Deputy Minister of Agriculture. At the same time, with the help of state support, it is possible to motivate the development of other areas: for example, soy or rape growing, processing, etc. It is preliminary assumed that at first the ratio of the compensating and stimulating parts of the subsidy will be at the level of 50/50%, then – 30/70% . “I hope that in the future we will leave only the stimulating part of the single subsidy,” Fastova said at the Where’s Margin conference in February. How Russian government support agricultural business.
The Ministry of Agriculture holds meetings with regional agrarian departments, discusses their priorities, while the indicators of neighbors are also taken into account. So, if poultry meat production is not developed in one region, but there is a surplus in the neighboring region, then it is inappropriate to support the construction of the poultry complex in the first. According to Fastova, somewhere there are already developed programs and a push is needed to revitalize the work, and some regions need to be helped to determine their priorities in order to achieve a balance in general.

How Russian government support agricultural business

The Russian grain union has long insisted that subsidies should be divided into means of support and development, and to make the latter a protected article, since historically usually the means of development are sequestered, the president of the union Arkady Zlochevsky recalls. “But it will all depend on how this separation is ultimately implemented,” he says.
Analyst at the Institute for Integrated Strategic Studies (ICSI) Nadezhda Kanygina also believes that this decision is theoretically correct: in fact, this is just targeted support for individual projects in the regions, while it is assumed that it will be more rational – the money should go to what is needed. However, the scheme for determining priority projects and allocating funds is not yet clear. How Russian government support agricultural business? “We need a mechanism and expert support to competently determine the effective directions of development, taking into account the resources, needs and characteristics of the socio-economic situation of a particular region,” Kanygin draws attention. “I doubt that there are institutions in the regions that can carry out such work.” It is also not yet clear with which projects investors can come, in which case you can really count on support with confidence. How Russian government support agricultural business? Moreover, it can always be refused, citing other goals of state policy, the expert warns. “Therefore, there is a big risk that the funds will again be received exclusively by individual organizations in the regions, the distribution of subsidies will again be asymmetric, and small businesses will suffer from this,” she fears.
Most importantly, these innovations can be effective only if there is a common strategy for the development of the sector, emphasizes the head of the ICSI analytical research department Sergey Zaversky. “Otherwise, there will be neither adequate ways of determining needs, nor a reference point for experts,” he notes, adding that, of course, neighboring territories could get more advantages from cooperation, and not from competition.
The subsidizing system, of course, needs to be improved, since the conditions for the existence and development of the agro-industrial complex are changing, the general director of the Agrosila holding Svetlana Barsukova draws attention. “As follows from the explanations of the Ministry of Agriculture, in essence we are talking about operational (compensating parts) and strategic (stimulating parts) management,” she says. – To formulate a development strategy for the agro-industrial complex, it is necessary to review the development programs of each region, involve representatives of agribusiness in the discussion, and approve them. It is then that a balanced development of agriculture can be achieved. ” At the same time, the compensating part of the subsidy should remain unchanged, she adds.
Interviewed by Agroinvestor, market participants heard about the upcoming changes and the upcoming separation of subsidies, but so far do not know the details. Kanygina believes that informing farmers about existing measures of state support is generally poorly developed. “The system of communicating information and counseling on new support measures has been tested many times, and those who are interested in subsidies can always find the opportunity to receive information and promptly provide the necessary documents to receive funds,” says Yevgeny Kokovin, financial director of the Sverdlovsk company Start. Therefore, he believes that in the organizational and administrative plan there will be no difficulties with the new subsidies.

More employees – higher subsidies!

How Russian government support agricultural business? In January, Prime Minister Dmitry Medvedev signed a decree amending the rules for granting subsidies to agricultural machinery manufacturers under program No. 1432. Now the limit on the amount of subsidies is adjusted depending on the number of employees. So, for enterprises producing machinery with 75-500 employees, the total amount of subsidies is increased from 5% to 15% (as a percentage of the total subsidies for the financial year), and for factories with 500-1000 employees – from 12.5 % to 20%. In addition, the possibility of subsidizing agricultural machinery for the production and post-harvest processing of flax was established. This year, the program provides for 8 billion rubles. However, as stated by Medvedev, there is an opportunity to go beyond this amount. According to the Rosspetsmash association, by the beginning of March, these funds were actually spent, since the carry-over balance of subsidies under the contracts of 2018 amounted to 7 billion rubles.
Meanwhile, according to Elena Fastova, one of the tasks on which the Ministry of Agriculture plans to concentrate this year is the technical re-equipment of the industry. Existing programs – soft loans for the purchase of equipment, leasing, subsidies – to agricultural equipment manufacturers are not enough to enable them to sell it at a discount. Therefore, the Ministry wants to develop a separate departmental program for the technical re-equipment of the industry; an additional 10 billion rubles will be required for it, Fastova estimated.

How Russian government support agricultural business
With government support, the payback period for agricultural projects is greatly reduced.

If the division of subsidies is only being prepared, then some adjustments to state support for the agro-industrial complex are already in place. For example, 2018 was the last year when greenhouse projects received a reimbursement of part of the direct costs incurred, and they were reduced from 20% to 10%. The National Union of Fruit and Vegetable Producers noted that since 2015 this support measure has been the main one for the sector, thanks to it the payback periods of the complexes were about eight years.
Compensation for capital expenditures was a temporary measure introduced during the crisis, when, against the backdrop of rising dollar exchange rates, the business almost stopped developing, as the payback period of projects increased. Initially, it was assumed that this support would last only for three years, but it was extended, recalls Fastova. The Ministry of Agriculture analyzed the situation in greenhouse vegetable growing and investor plans and came to the conclusion that in the future the sector will have enough soft loans. CAPEX reimbursement will remain only for those areas in which investors are reluctant or specific enough, for example, the creation of selection-genetic and hybrid centers. Also, this support will continue to receive dairy complexes, projects to create vegetable and fruit storage, grape nurseries. A new direction will be the production of dry dairy products for baby food, since they are almost not produced in Russia. How Russian government support agricultural business?
At the end of last year, the Fruit and Vegetable Union appealed to the Ministry of Agriculture with a request to keep the industry reimbursed for capex and extend the period of preferential investment lending from eight to 12 years. With an increase in operating costs and a significant decrease in wholesale prices for greenhouse vegetables, further implementation of projects in greenhouse vegetable growing becomes economically inexpedient and risky not only for investors, but also for banks. Investors of some of the projects that were supposed to be launched in 2019-2021, due to the abolition of CAPEX subsidies, may decide to suspend construction or not start work, the union warned.

Projects in the sector are suspended, confirms Anatoly Kutsenko, president of the Fruit and Vegetable Union. Although there are periods of price increases during the year, in general, in 2018, the selling price for vegetables decreased by 5-6%, and in some positions to 8%, while costs and operating expenses are growing. Project payback now exceeds 12 years, while the old, non-modernized greenhouse complexes will gradually leave the market. Without reimbursement of part of the capex, projects in the sector can only be implemented by existing players – this will mainly be the creation of the second or third phases of complexes, diversification by region. Only with preferential loans will new investors not enter the sector, Kutsenko emphasizes.
“When the established rules are changed at halfway, this cannot but cause a negative reaction,” comments Guriy Shilov, general director of the Greenhouse greenhouse complex (Belgorod Region). —The greenhouse industry is capital-intensive, for example, an investor (Sigma Capital) invested more than 4 billion rubles in our project on 25 hectares. Of course, when decisions are made on such investments, all the introductory ones are taken into account: the market situation, the share of imports, state support, etc. ” The expansion of the project to 300 hectares by 2024 is still in question.
As population incomes are projected, the demand for greenhouse vegetables will increase. Over the past three years, the consumption of fresh vegetables has grown by almost 400 thousand tons, taking into account supplies from abroad. In 2019-2020, gross output will continue to increase, but then additional demand will be satisfied by imports, rather than domestic production, warns Kutsenko. Now the Ministry of Agriculture has created a working group to assess these risks.
Partner of the practice of agro-industrial complex of the company “NEO Center” Inna Golfand considers the reimbursement of part of the capex incurred as one of the well-established measures that really affect the development of agriculture. It contributes to the influx of new investors into the industry, since it significantly reduces the payback period of projects and improves the attractiveness of certain areas. “This is especially evident in the greenhouse industry, where a large number of projects were implemented in three to four years and we moved from a high volume of imports to an almost saturated market,” the expert notes. She agrees that without CAPEX, as well as increased competition and falling prices, the payback period of projects has increased. How Russian government support agricultural business. However, he adds that there are other areas in the agricultural sector where the level of imports is still high and there is great potential not only for its replacement, but also for the development of exports. “An example would be aquaculture and deep cereal processing. In my opinion, both of these industries would receive a strong impetus in development and an influx of new investors if there was a reimbursement of part of the capital costs, ”Golfand said. Zlochevsky also says that reimbursement of part of the capex is the most effective measure of state support. However, the lion’s share of these subsidies goes to large players, he draws attention.

How Russian government support agricultural business
All farmers will receive per hectare payments.

Another innovation of this year concerns insurance with state support. Funds for this direction – 1.5 billion rubles. – made a secure line in the “single” subsidy. Also, farms that insure crops can rely on increased unrelated support (+ 15%), 1.4 billion rubles are provided for this. Relatively speaking, the one who insured will receive 100 rubles. per hectare, and who is not – 85 rubles. The Ministry of Agriculture intends to gradually move to the fact that farmers receiving unrelated support should have an insurance contract, Fastova said earlier.
How Russian government support agricultural business in Russia? The agricultural insurance system itself was also adjusted: in particular, the threshold for harvest loss was canceled, it was also possible to insure one or several risks, not all at once, with the state support, the maximum size of the unconditional deductible was increased from 30% to 50% of the sum insured. The Ministry of Agriculture expects that cheaper and more attractive insurance programs will now appear, and interest among farmers and insurance companies will increase.
According to the president of the National Union of Agricultural Insurers (NSA) Korney Bizhdov, the decision to protect the targeted use of funds for insurance in a single subsidy was taken in almost the only possible format, which the stage of budget formation for 2019 allowed. How it will be implemented should show the practice of this year. “The NSA believes that this decision, as well as the work of the Ministry of Agriculture with the regions helped to qualitatively change the situation in agricultural insurance since the second half of 2018,” he comments. – As of December 31, insurance contracts accepted for subsidies were actually paid for 98% of the cost, that is, subsidies were not delayed for the first time. In July – December last year, the volume of premiums on agricultural insurance with state support increased by 79% compared to the same period in 2017. “

The protection of agricultural insurance subsidies is one of the main conditions without which the system will not function, Bijdov is sure. At the same time, insurers from 2012 regularly came across the fact that the regional agro-agencies preferred to redistribute the funds of insurance subsidies for other purposes, arguing that farmers do not want to insure themselves, he says. How Russian government support agricultural business in Russia? “As a result, by 2016, there was a practice according to which the debt of the regions for subsidizing winter insurance subsidies was repaid already in the middle of next year. This approach not only led to underfunding, but also prevented insurers and landowners from participating in the insurance system with state support, ”complains the head of the NSA. The insurers formed receivables, and farmers could not plan their insurance coverage. Sometimes they were faced with the fact that insurance payments were reduced, since the policy was only partially paid, because the insured event occurred before the state transferred its part of the cost of insurance.
True, the amount of subsidies of 1.5 billion rubles envisaged to support insurance does not correspond to the risks in the agricultural sector, the NSA estimates. According to data for 2012-2018, annual losses in crop production only at direct costs, which were compensated from the federal budget, in five cases out of seven exceeded 4 billion rubles. Moreover, the maximum direct damage in the industry was registered in the drought of 2010 and reached 42 billion rubles. “Given the fact that agricultural production has almost doubled since then, such an event today could cause damage at least 80 billion rubles,” Bizhdov said.
The fact that insurance was allocated as a separate line of the budget is undoubtedly the right measure, Nadezhda Kanygina believes, since earlier most regions sent funds to it according to the residual principle. Due to the introduction of a “single” subsidy, agricultural insurance has experienced a deep crisis in the last two years, she recalls. So, for 2018, crop and perennial plant insurance decreased by 31.5% in annual terms.

But Arkady Zlochevsky, on the contrary, believes that the allocation of funds for insurance in the “single” subsidy is not justified. “We have long been saying that we have the wrong insurance mechanism. It is necessary to insure not some shortage, but a catastrophic crop loss according to the Spanish model, then this program will be in demand, ”he notes. In addition, any conditions for obtaining unrelated support actually make it related, the expert adds.
Linking the size of hectare payments to the presence or absence of an insurance policy is not the only innovation in this type of subsidy. Starting this year, unrelated support will be paid only to enterprises that use conditioned seeds of zoned varieties. How Russian government support agricultural business?
Due to these adjustments, EkoNiva holding will reduce hectare support by about 40%, or 50 million rubles, estimates commercial director Sergey Lyashko, and, according to him, many market participants will be in a similar situation. “We use seeds included in the State Register, but not necessarily zoned. For example, we grow Canadian Prudence soybean variety, which is included in the register for the Voronezh region, but not included in Ryazan. And we are sowing it in both of these regions, which means that in the Ryazan region we will not receive hectare support for soybean crops, ”Lyashko explains.
The top manager considers this approach to payments incorrect. The main thing is that this or that cultivar is allowed to be cultivated in Russia, and it is up to the agricultural producer who is interested in getting a good crop to cultivate it. “If the indicators of this variety are better than those included in the register for the region, why should we refuse it because of the link to per hectare payments? – asks Lyashko. “And then, what goal are we pursuing?” If the yield and export potential increase, then let us give the business the right to choose varieties on their own and decide where it is better to grow them. ”
Linking hectare payments to the use of zoned seeds is not a very reasonable decision, agrees Zlochevsky. It may be associated with an attempt to promote domestic seeds, but the consumer is always right, and the farmers themselves must decide what it is more profitable to cultivate them. Our unrelated support is not very effective at all: firstly, there are few funds allocated for it – on average, payments amount to only 300 rubles / ha, and secondly, there are questions about the principle of their distribution. “When money is allocated according to the logic that the worse the agro-climatic conditions and the larger the area, the higher the subsidies, this is a direct incentive to antitechnology,” Zlochevsky notes. “We need to chase not for the size of crops, but for the productivity of the area.” This is one of the answers to the question “How Russian government support agricultural business”.
In providing this kind of support, there is no connection with the quality of production; Kanygin is in solidarity with it. “For example, now the concept of milk variety has been removed, although earlier state support was provided to a greater extent to producers of the highest and first grades,” she recalls. – Then it really seemed to be a measure stimulating the production of quality products. Now they are betting more on gross indicators. ”

State support reduces the burden on the budget.

For AFG National, the most important measures of state support are concessional lending, as well as subsidizing the purchase of domestic agricultural equipment under program No. 1432, says General Director of the holding Yuri Belov. “In rice growing we get hectare support in the Rostov region, as well as subsidies for water supply in the Krasnodar Territory. In the Kuban this year an additional 180 million rubles were allocated. on the development of crop production, however, additional support for rice growing is not provided, ”he says. In the potato segment, subsidies for the reimbursement of the direct costs incurred for the construction of land reclamation systems and for the purchase of seed material are good. “These measures are extremely expensive, because we use imported irrigation equipment and imported elite seeds. State support allows you to slightly reduce the burden on the budget of the enterprise, ”Belov explains.

Everyone needs soft loans!

The most popular measure of support for agricultural producers are soft loans. This year, new lines of lending were added, in particular, now money can be borrowed for raw milk for the production of whole milk products, curds and cream cheeses, and funds are also provided to flour mills for the purchase of grain from farmers in the Urals and Siberia. Moreover, since 2019, not 100%, but 90% of the Central Bank key rate has been subsidized for soft loans. This is one of many ways how Russian government support agricultural business.
Despite the nominal growth in lending volumes, in 2017–2018, far-reaching financing was not available to everyone, Kanygin estimates. “The distribution of state support funds for lending for 2019 also continues to raise questions,” she said. The volume of state support is small, and the system of distribution of subsidies is extremely selective and opaque, which puts companies in unequal conditions. Preferential short-term loans – the most hot problem, since medium and small enterprises almost do not get these funds, she repeats Zlochevsky.

How Russian government support agricultural business

In February, Elena Fastova said at the congress of the Association of Peasant (Farm) Farms and Agricultural Cooperatives that the Ministry of Agriculture imposed restrictions of 400 million rubles. per borrower per year, so that it doesn’t happen that the whole limit of soft loans is received by several players. She also noted that the Ministry has significantly simplified the procedure for obtaining loans for small and medium-sized businesses. How Russian government support agricultural business?
Previously, the limit was 1 billion rubles, says Sergey Lyashko, and, in his opinion, this measure will negatively affect the volume of support for large companies and to a lesser extent will affect small farms. EkoNiva regularly takes soft loans. How Russian government support agricultural business? This year, the company’s plans will not change, since work on the announced projects is already underway, in addition, part of the cost recovery is retained. Subsequently, taking into account adjustments to state support, Lyashko does not exclude shifts in the timing of implementation. “We have developed a strategy for the development and increase in milk production until 2025, and we intend to adhere to it. However, with reduced support for the planned indicators, we may come out later, ”explains the top manager.
“Concessional lending and subsidies for investment loans raised before December 31, 2016 are the main form of support received by Cherkizovo Group,” says Irina Kondratova, head of the Treasury, Corporate Finance and Reporting Department of the holding. “The estimated amount receivable in 2019 is 700 million rubles.” Due to the establishment of a limit on short-term lending, the amount of support in this area can be reduced by about a factor of three, she estimates. At the same time, Kondratova draws attention to the fact that subsidies are received with a delay, and at the beginning of the year the amount of debt is growing seasonally. According to mid-March, the group was not paid about 1.2 billion rubles. This is another way how Russian government support agricultural business in Russia.

How Russian government support agricultural business

Rusagro CEO Maxim Basov also speaks about seasonal subsidy arrears. “The main support for us is subsidized investment loans. Many investment projects without subsidies would not pay off, ”he says. – But we get a little short-term soft loans, hectare support in most regions is not. How Russian government support agricultural business? True, some regions provide investment subsidies and tax incentives. ” In his opinion, the most important thing is that when allotting state support, all companies are on an equal footing.
There are always delays in payments, but there are no serious problems or complaints that money is not brought, in any case in the Urals, says Yevgeny Kokovin from Start. “We consider this issue as a whole resolved. And then, it is possible to ensure uninterrupted supraoperative receipt of subsidies, but administration costs will increase substantially, which is simply irrational, ”he argues. The company can attract soft loans, but the need for short-term loans is usually low, and getting investment is more difficult, their industry is definitely not enough. “Rates on soft loans taking into account inflation can be called acceptable, but the amount of financing in this area is insufficient. In my opinion, the problem is the liquidity shortage in the agro-industrial complex and the economy as a whole, ”Kokovin comments. How Russian government support agricultural business? The main problem is the lack of budgetary funds, which is why farmers often do not receive the required subsidies in full, since they are divided proportionally among all market participants, agrees AFG National CEO Yuri Belov. “In addition, as a result of a decrease in the share of federal co-financing, the volume of regional state support is forcibly reduced for the third year in a row,” he adds. Svetlana Barsukova also calls the problem only the volumes of financing, which are not enough to cover all the needs of the agro-industrial complex.

What kind of support from the government is not enough?

According to experts and market participants, the Russian agro-industrial complex lacks not only funding volumes, but also support measures, including those that do not require significant investments from the state. How Russian government support agricultural business. For example, in order to increase export volumes, it is necessary to negotiate with other countries and establish free trade zones, create networks of sales offices abroad, create a positive image of the brand “Made in Russia” and promote it, Inna Golfand lists. The development of logistics infrastructure is also important: an increase in transshipment capacities in ports, a fleet of wagons, reduction / subsidization of tariffs for transportation, and the creation of a network of ORCs. Last season there were preferential transportation of grain from remote regions, this program how Russian government support agricultural business, was reduced by several times – it is planned to transport only 80 thousand tons by August 31, while from the end of 2017 to June 30, 2018, more than 3 million tons of grain was transported. “To return this measure at least on a previous scale,” says Zlochevsky.
Also, according to him, it would be good to renew the existing subsidizing of the purchase of fertilizers. In addition, much is said about the need to maintain the profitability of farmers, but so far nothing has been done. “This is an American model that works perfectly and has proved its effectiveness in world practice,” the expert comments. – The first step that the Americans took was to introduce farmer income insurance, but this is a very expensive program. In addition, market regulation should be aimed at maintaining and retaining revenues, but in our country it is exactly the opposite: export duties are introduced, or some other restrictions are necessary so that domestic prices are lower. And they just provide income to farmers. “

How Russian government support agricultural business

Anatoly Kutsenko is sure that the state should pay more attention to regulating the market of fruits and vegetables, as part of this production comes from abroad according to “gray” schemes. For example, last year, the import of apples only officially increased by 130 thousand tons. “We need to strengthen the work of regulatory oversight bodies that would protect the market, as is usual in other countries, when any supplier of imported products is necessarily certified and certified,” I am sure it. How Russian government support agricultural business?
A new form of support could be a large-scale federal program of food assistance to the poor, Kondratova believes. “Using the US example, it is known that such programs increase the size of the food market, stimulate GDP growth and create new jobs,” she said. – A distinctive feature of assistance programs is efficiency, ease of administration and a low percentage of thefts. Monthly payments are made to special debit cards, and violations during transactions are recorded only in 1-2% of cases. ” In Russia, there is no direct correlation between the amount of subsidies issued and the efficiency of the enterprise, she notes, and this form of support suggests that manufacturers will compete for additional funds “on the shelf”. “Efficient enterprises will have the opportunity to increase production and, due to economies of scale, become more competitive in global markets,” says Kondratova.
Barsukova notes that it is necessary to develop support for agricultural clusters. How Russian government support agricultural business? “The program operating in the Ministry of Trade is a good and effective tool for the development of production cooperation chains, which allows reimbursing part of the capital costs for the construction of new production facilities,” she says. – However, its significant limitation is the lack of support for the agro-industrial complex (the exception is agricultural engineering). Its expansion or the creation of a similar program on the basis of the Ministry of Agriculture would give an additional impetus to the development of production. ”

Belov draws attention to the need for state support for the development of rice breeding, which today is not available in any format. “It would also be nice to introduce at the federal level a subsidy for the reimbursement of part of the costs incurred when introducing fallow lands into agricultural circulation: in some regions this measure exists, and in some it does not exist,” he adds. Kokovin also believes that measures should be expanded to increase soil fertility, including through chemical reclamation. How Russian government support agricultural business? Support for organic farming is also needed. “The state should give the industry a signal that it is necessary to invest in this direction, and pay attention to the task of creating and promoting, including abroad, the brand of“ green ”products, which President Vladimir Putin voiced in a message to the Federal Assembly,” he says .
But Sergey Lyashko believes that we are not even talking about new support measures, but about the stability of the old ones. “The rules of the game change quite often, this does not allow the business to build any strategic plans,” he complains. – With the same linkage of hectare payments to zoned seeds, the business was not warned in advance, but put before the fact. At the same time, to include a variety in the register for a specific region, it takes at least two years, or even three, if the test results of two years are mixed. ” The rules are constantly changing, agrees Zlochevsky: two years ago, the subsidies were combined, now they are again disconnected.

In gardening, we need an integrated approach!

In 2018, state support for horticulture was increased, and from 2019, a limit of 1 billion rubles was allocated in the “single” subsidy. to bookmark the vineyards. “Also, a long-awaited decision was made – the differentiation of subsidies for the reimbursement of part of the cost of planting perennial fruit trees depending on the number of seedlings per hectare,” says Yuri Belov from AFG National. – Two gradations have been introduced: from 800 to 2499 and from 2500 and more seedlings. But in a super-intensive garden, the density of tree planting is from 2.8 thousand to 7.6 thousand per hectare. That is, the share of subsidized costs for super-intensive gardens remains significantly lower than for other types of gardens, even taking into account the differentiated subsidy. ” How Russian government support agricultural business?
Anatoly Kutsenko from the Fruit and Vegetable Union is confident that the federal center should establish clear definitions of which garden is considered traditional, intensive and superintensive, as well as systematize support. “Now some regions give 400 thousand rubles. for laying a garden, some 500 thousand rubles, and someone up to 800 thousand rubles, he compares. “At the same time, we need a more comprehensive approach, it is important to take into account the condition of the gardens and what products they give – whether they are marketable or not.”
Also, for the development of high-intensity horticulture, due to its capital intensity, subsidizing capex is crucial, Belov continues. Now reimbursed 20% for the construction of storage facilities. “This is a good measure, but against the background of other European countries in terms of state support for gardening, we are still among the lagging ones,” he regrets. We really hope that with the help of this article you received the answer to the question “How Russian government support agricultural business?”.

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