The result without support

The planned volume of state support of dairy cattle breeding in 2017 is 1013.8 million rubles, including 147.0 million rubles that was supposed to be spent on preferential investment loans, 866.8 million rubles - on short preferential loans. However, according to the farmers, many companies did not see promised support, and to someone it seems unnecessary, because one has to wait long the promised money and the money either don't come on time or come in a much smaller volume.


THE MONEY IS NOT ENOUGH FOR EVERYBODY

At the beginning of the year, it was reported that the Ministry of agriculture in the case of budget adjustments in the first half of 2017 can receive additionally 14 billion rubles for preferential loans to farmers. According to operative data, in July the Federal agricultural Department sent 9 billion rubles, in this connection, the Ministry of agriculture from 20 to 24 July is open for registration for reimbursement of capital costs for investment projects in agriculture. Projects submitted to the Ministry of agriculture in different period are not allowed to participate in the selection.

The scheme of preferential crediting, the most attractive to farmers and loudly advertised by the authorities in the past year, started to operate since 1 January 2017, however, it is still not easy and sometimes impossible to get credits for participants in the dairy industry. In the sector it is said that banks often approve the application in part – so that everyone could have a little bit. But the key problem is lack of budget, not designed for huge projects of most market leaders. Another problem is the lack of funds for the grants for development of family farms and cooperatives widely presented by officials. Today, according to the industry participants, it is often easier for a company to write a business plan for new projects, promoted by the authorities in order to implement the policy of import substitution, without state support.

Existing enterprises depending on the region strive to maintain its stability without incurring credits and note the usefulness of such forms of state support as subsidizing of feed, equipment and produced milk.

"What matters is not just state support, a concrete result is important. Milk production in Russia is not supported enough. But this is a very unrewarding and hard work. And this is the “longest” money. Sometimes the situation is that applications for loans are considered for too long. For example, many farmers still hang with applications for sowing, when the harvest season is in full swing now. Currently, banks give loans to farmers up to 5%, earlier this percentage was generally covered by state support. In the end, we got almost an interest-free loan", - told Alexander Lebedev, director of JSC "Gatchinskoe" (Leningrad region) to the correspondent of the DairyNews.

"Our company is developing with government support. We get subsidies for milk production and feed. And this is what significantly helps us. It is worth noting that in the last three years for agricultural enterprises it is almost impossible to take a credit and quietly develop in Russia," - said Oleg Kilin, Deputy Director of CJSC "Agrotekhnika" (Leningrad region).

In the I-st half of 2017 Russian agricultural Bank provided more than 70 billion rubles to agricultural enterprises at a rate not exceeding 5% per annum, reported a leading agricultural Bank of Russia the day before. Applications of Rosselkhozbank clients for the amount of about 105 billion rubles are currently being coordinated in the Ministry of agriculture of Russia.


IN THE COMPLEX

"State support needs to be comprehensive: the infrastructure and financial. For example, in relation to fertilizers. To cultivate the land one needs to spend minimum 20 thousand rubles, to introduce one hectare of land in crop rotation. And we are given 200 rubles per hectare. However, without state support it is very difficult to survive," - shared his opinion the General Director of the farm "Andronovskoe" Yuly Chelyshev.

"In Russia, credit conditions are very rigid, and the interest is enormous compared to other countries. Conditions should be definitely improved. If we joined the WTO, looking at the Western examples, then we should follow them in terms of the credit policy in relation to the producers," - said in comments Oleg Dolinny, Deputy Director of "Voshchazhnikovo".

Farmers note that state support of agriculture in the country is not a transparent column of the budget. Market participants call stable support from the regions the most significant. "Where the regional government is indifferent to agriculture, it will not develop in any volume of Federal funds," said one of the participants of the market.

Today in the lobby of the Ministry of agriculture and of government the officials themselves acknowledge that the current level of subsidies for preferential loans is insufficient for all comers. However, the available amount can be realized not in all regions. Despite this, officially the dairy industry shows the result. So, at the agricultural enterprises of the country the milk production for the six months of the year rose by nearly 3%.

Read full article in Russian on DairyNews.ru