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24 November 2024

News

25.09.2017

State support in amount of UAH 3.6 billion. Commentary by Taras Vysotskyi

The amount of allocated state support for the agro-industrial sector in the draft budget amounted to UAH 6,3 billion. General Director of the Association “Ukrainian Agribusiness Club” told about how budget finance will be distributed.

It is difficult to call state support for the agro-industrial complex in 2018 a big breakthrough, but we can say that within the framework of GDP growth, the amount of state support is also increasing. For the second consecutive year, without any reductions, we managed to allocate 1 per cent 1% of the agricultural GDP on state support from the budget. This is extremely important because support really works. Therefore, next year, the amount of funding should be maintained - on the basis of this it will be easier for farmers to plan the volumes. It is important that the funds are allocated from the general fund, which guarantees their allocation.

There is no large gradation in the distribution of budget funds, only 5-6 articles of the law are divided into strategic blocs. State support can be divided into 3 articles. The first one - the financial support of agricultural producers is UAH 2.945 billion, of which UAH 945 million is compensation for the cost of equipment and UAH 2 billion for agricultural subsidies. The second - UAH 2.3 billion USD for support the livestock industry and the third - UAH 1 billion - for farming.

Analyzing the proposals of the Cabinet of Ministers on state support for 2018, it can be noted that significant funds are planned to be allocated to the livestock industry. The amount of resources allocated for livestock breeding is UAH 2.3 billion - this will provide compensation for the cost of construction, reconstruction of livestock complexes and the cost of breeding herd. However, it's worth to understand that this program is still a "clean sheet". The main points of support will be discussed with representatives of the sector and then already recorded in the by-laws.

We, for our part, will appeal to the associations in order to begin the process of developing of the concept right now. This will allow to understand not only the size of the allocated amount, but also the mechanism of distribution and the conditions under which agrarians can receive this money. With regard to the allocation of UAH 1 billion for the development of farming and co-operation, now the working group at the Ministry of Agrarian Policy is waiting for clear proposals from the Association of farmers and private landowners. Also, we consider the allocation of UAH 687 million for the implementation of antiepizootic measures is a very good decision. We all see the rising prices for meat and meat products due to supply shortages. And the supply shortages are directly related to the spread of African swine fever virus. In this situation, both producers and the population are left unprotected.

Now it is important that in the session hall the Verkhovna Rada voted for everything that was approved by the government. And in the course of public discussions and consultations with associations and producers, they will develop the rules and regulations.




  • Baker TILLY
  • Agroresurs
  • AMAKO
  • Limagrain
  • Zeppelin
  • Amazone
  • LNZ Group
  •  Agricom Group
  • horsch
  • uahk
  • Сygnet
  • Syngenta
  • Agco
  • Agroregion
  • Eridon
  • MHP
  • Maschionet
  • Maisadour
  • DuPont Pioneer
  • Agroscop
  • Agrimatco
  • NCH Advisors
  • Continental farmers Group
  • credit agricole
  • claas
  • john deer
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