Requirements for regions to support farmers may be tightened

The Ministry of Agriculture proposes to amend the state program for the development of agriculture in Russia: according to a document published on the portal of draft regulations on January 13, the ministry wants to oblige the regions in the first quarter of this year to bring to farmers at least 40% of the funds allocated to support this sector.

We are talking about a stimulating subsidy (it is allocated for the production of each liter of milk and its products, tons of grain, kilogram of meat), as well as a compensatory subsidy that reimburses companies for part of the funds that were spent on the purchase of seeds, livestock, planting intensive orchards, etc. .

In case of non-fulfillment of these requirements by specific subjects, the Ministry of Agriculture proposes to reduce the amount of such assistance by 10% this year, and distribute the released limits among other regions. Moreover, judging by the document, the southern regions – Adygea, Kalmykia, Krasnodar and Stavropol Territories, Astrakhan, Volgograd, Rostov Regions – must transfer at least 50% of subsidies to farmers in the first quarter, and for the subjects of the Far Eastern District this figure is set at 20% . Discussion of the draft amendments will last until January 27, 2023. Various requirements for the regions in the explanatory note of the Ministry of Agriculture are explained by “natural and climatic features and the specifics of agriculture.”

Similar rules are in force now, but they are not so strict: the regions must bring to the recipients at least 50% of the amount of annual limits only until June 1. Otherwise, next year they will be allocated 20% less to support the industry.