26 Dec 2019 19:37

New agriculture support mechanism complicated, needs improving - Gordeyev

MOSCOW. Dec 26 (Interfax) - The new mechanism of state support for agriculture has proved complicated and needs improving, Deputy Prime Minister Alexei Gordeyev, responsible in the Cabinet for agriculture, told reporters.

"We'll be enhancing it. The issue proved to be challenging, firstly because agriculture depends largely on the weather and it is difficult to make firm commitments, and secondly because there are too many various agreements, contracts and agreements and so this can become too bureaucratic and to little effect," he said.

"So we'll be looking in the New Year at how this mechanism is used in practice," he said.

There are currently three types of farming subsidy: one for milk, the per-hectare subsidy and single subsidy. These will be combined in 2020 and split into two - compensatory and stimulatory. The one will compensate farmers for lost income and will be allocated on a per-liter and per-hectare basis, and the other will support promising areas agriculture in the regions.

The Russian Agriculture Ministry does not intend to dispense with the compensatory subsidy in the coming years, but most funds will be allocated for stimulatory subsidies to give regions the opportunity to boost production and exports.

A government resolution on the new mechanism was signed on November 30 and prioritizes the farming of vegetables, fruit and berries, viticulture, beef cattle and oilseed crops, especially soybeans and rape. The budget 2020 budget allocates 34 billion rubles for compensatory subsidies and 27 billion rubles for stimulatory subsidiaries.

Overall state support for agriculture will rise to 321 billion rubles in 2020 from 307 billion rubles in 2019. The AgMin forecasts exports will rise to $24 billion-$25 billion in 2019, from $25.8 billion in 2018.