State support for providing agricultural equipment to Russian farmers could almost double in 2025 - minister

MOSCOW. Nov 1 (Interfax) - State support for providing Russian farmers with agricultural equipment could almost double in 2025 compared to this year, Agriculture Minister Oksana Luth said.

"We hope that the increase will be very significant, almost double," Luth said at a meeting of the United Russia party's program commission on Friday.

An additional 600 million rubles above the 2024 figure has been included in the current 2025 draft budget for these purposes, she said. "Plus we are working on the possibility of additional increases in the second reading alongside the Duma and the party - another 3 billion rubles. And along with the Industry and Trade Ministry we are looking for sources to increase leasing support in particular by another 4 billion rubles next year," she said. Agricultural producers will be provided with all required equipment, she said.

As reported, agricultural producers have significantly cut purchases of equipment this year amid higher prices, more expensive loans and a growth in other expenses.

According to the Rosspetsmash association, shipments of Russian agricultural equipment fell 10% to 107.4 billion rubles in H1 amid a decrease in effective demand from agricultural producers. In particular, sales of grain harvesters fell 22% to 2,368 units, self-propelled forage harvesters 32% to 107 units, agricultural tractors 1% to 2,121 units, plows 22% to 788 units, cultivators 18% to 1,231 units, harrows by 10% to 2,002 units, seeders by 15% to 1,918 units and mowers by 10% to 1,456 units.

Agricultural equipment production facilities are operating at only 40%-60% capacity.

The agricultural sector continues to face a shortage of essential types of equipment, and much of the current equipment has been in use for an extended period. According to the Agriculture Ministry, the sector lacks 65,000 tractors and 34,000 harvesters. The share of tractors over 10 years old is around 53%, for grain harvesters it is 45% and for forage harvesters 44%.

From the start of the year to October 24, Rosagroleasing supplied 1,905 tractors to farmers, an increase of 5.7% year-on-year, with the equipment valued at 20.5 billion rubles.

With adjustments made to the draft federal budget for the second reading, 521.4 billion rubles have been allocated to implement the Agriculture Ministry's state programs in 2025, 539.6 billion rubles in 2026 and 551.6 billion rubles in 2027, Luth said.