Subsidies to Voronezh agribusiness: results and prospects
According to the table distributed to the participants of the meeting on budget allocations, we expect the reduction of subsidies for Voronezh agro – industrial complex - from 8.2 billion in 2018 to 6.4 billion in 2019. This is not a cause for concern, believes the Deputy Chairman of the regional government in charge of the agricultural sector Viktor Logvinov. During the year, the size of subsidies increases at the expense of the government's reserves - it was in the past years, it is sure to be in 2019. As a rule, the ratio of budget co-financing is 66-85% (Federal budget) to 15-33% (regional), but there are programs financed exclusively from the regional budget.
For the needs of Voronezh agro-industrial complex for 2019 it is planned to allocate 4.34 billion rubles (the figures are preliminary and can be adjusted) from the Federal budget. In turn, the regional budget will have to provide co – financing in the amount of 2 billion rubles - as much as in 2018.
First, the Agricultural Department reported that the money allocated in 2018 was spent. 4.7 billion rubles, including 925 million from the regional budget, is aimed at subsidizing investment loans (the official name of the subprogram is "Stimulating investment activity in the agro – industrial complex"). This is 58% of the total amount of state support of Voronezh agro-industrial complex. The greatest support was received by projects in dairy cattle breeding - 1,7 billion rubles (the main recipients – "EkoNiva", "Molvest" and APK "Don"), in meat cattle breeding – 957 million (GC "Zarechnoye"), as well as in animal husbandry – 1,7 billion rubles (GC "Agroeco", "Verkhnekhavsky agroholding").
The second largest item of expenditure is a "single" subsidy; it is "Promoting the achievement of targets in the agricultural sector". Voronezh farmers will receive 2.27 billion rubles for these tasks by the end of the year, of which 473 million is at the expense of the regional budget. This subsidy, left to the regional authorities, appeared only in 2017, replacing various narrowly focused programs. It includes grant support. The condition for obtaining the grant is co-financing by the recipient of the subsidy, the absence of tax arrears and a stable financial condition that allows making current payments independently. As part of the "single subsidy" there is also financed the laying of gardens – 361 million rubles, measures to prevent ASF – 130 million rubles.
368 million rubles, or 5% of all subsidies, is provided for the reimbursement of direct costs incurred, another 316 million (4%) – to increase production in dairy cattle.
The next most important support was the traditional "unrelated" support in crop production, paid according to the size of the cultivated land per hectare. There was initially allocated 114 million rubles, and during the year – another 163.7 million from the reserve fund of the government. In total, this is 3% of all subsidies.
If we look by sectors of agriculture, 2.7 billion rubles, or 33% of all budget allocations were directed to dairy cattle breeding, 1.95 billion, or 24% – to livestock breeding (that is, mainly in pig breeding). 1.52 billion (19%) - to plant growers, 1.5 billion (18%) – beef cattle breeding, another 4%, or 337 million, was directed to support farming, and 186 million (2%) – for technical and technological modernization.
Now about the changes that are expected in 2019. To subsidize investment loans it is planned to allocate 2.97 billion rubles, including 747.7 million from the regional budget. It is planned to allocate 1.18 billion rubles for the development of animal husbandry (mainly pig breeding, as you guessed). It is planned to spent 818 million rubles to subsidize investments in dairy cattle breeding, 589 million rubles - for meat cattle. The "single" subsidy will remain almost unchanged - 2,018 billion rubles, including 303 million from the regional budget.
A completely new regional sub-program in the field of agriculture will be the financing of "development of the food and processing industry", which has been repeatedly announced by the Governor Alexander Gusev. It is planned to allocate 70.8 million rubles, or 12% of all budget allocations in the agricultural sector. The priority in this program is in-depth processing of grain; the entire program will be financed from the regional budget. Viktor Logvinov stressed that the money has been agreed upon with the regional financial departmental and if there are no objections from the deputies of the regional Duma, the money will be in the budget of 2019. The deputies Igor Alimenko ("Logus") and Alexander Evseev ("Agrotech-Garant") promised to help. Mr. Logvinov, in turn, urged all those present to participate in the new construction. "There is money available", assured the Deputy Prime Minister, but on the terms of co – financing, of course.
The subsidies meant to increase productivity in dairy cattle will remain approximately at the same level - 356 million rubles and in horticulture - 329 million rubles. To prevent African swine fever there will be spent 113 million. But the "unrelated" support in crop production is probably gradually fading into the past: it is planned to allocate only 35 million rubles in 2019, and this decision of the Ministry of agriculture of Russia.
A lot of time was devoted to the topic of subsidizing farming activities - perhaps the most difficult area in terms of co-financing. Unlike large holdings, a real farmer does not have a huge staff of financiers and lawyers who are able to draw up documents for subsidies, and the receipt itself is often bureaucratized by district administrations. On the other hand, there are cases when pseudo – farm structures are created solely for the purpose of obtaining subsidies. "Immediately contact the law enforcement agencies",-urged his district colleagues regional Deputy Prime Minister. The most rational idea was announced by the Head of the Bobrov district Anatoly Balbekov, who proposed to link support to farmers with the acquisition of farm animals. "What is the point of subsidizing farmers if they are engaged only in crop production”- the Head inquired. "We need to support those who want to be engaged in animal husbandry". The amount for the development of family livestock farms is planned to be increased – from 195 million in 2018 to 305 million in 2019.
In 2018 to support beginning farmers there was allocated 89 million rubles (100% was used); the plan for 2019 – 105 million. Grants to agricultural cooperatives will increase from 27 million in 2018 up to 70 million in 2019. And farmers almost never use credit subsidies, only 1.7 million (or 12%) of the planned 15.5 million rubles. Next year, only 3.5 million will remain on this line of the budget, and even because of availability of federal money. Only co-financing in the amount of 500 thousand rubles will be allocated from the regional budget.
Neither the figures of 2019 nor the decisions of the Presidium are final. At the end of November, a large-scale meeting of the Council of agriculture of the region under the chairmanship of the Governor is planned, which will be attended by the heads of large and medium-sized agricultural enterprises and farms of the region. Thus, all the points will be made clear in Voronezh agricultural sector for 2019
Цитаты дня
