Russian government confirms consolidation of two agricultural subsidies starting in 2024

MOSCOW. Dec 11 (Interfax) - The Russian government has adopted a resolution on changes to the state program of agricultural development, with compensatory and stimulating subsidies to be consolidated into one subsidy starting in 2024. Areas for subsidies have also been determined.

The document was signed on December 2, 2023 and made available on the official legal information website. It will enter into effect on January 1, 2024.

Twelve priority areas have been determined within the framework of the single subsidy. Five priority areas will be available for all regions. These are support of agricultural-technological works, elite seed breeding, pedigree livestock breeding, small-scale farming and agricultural insurance.

The remaining seven are aimed at support for traditional sub-industries of agriculture and northern reindeer breeding, production of long-flax and (or) industrial hemp, fruit and berry cultivation, support for milk production, beef cattle breeding, development of sheep breeding, goat breeding and wool production, as well as deep processing of grain and (or) processing of cattle, goat and sheep milk into food products. Of these areas, each region can choose three for subsidies.

As reported, a single subsidy in Russian agriculture was in effect earlier - until 2020. It was then divided into compensatory and stimulating subsidies. The first one, aimed at compensating producers' lost income, included support for crop production (hectare support) and dairy farming, support for livestock breeding and agricultural insurance. Stimulating subsidies are aimed at development of priority sectors identified by the Agriculture Ministry.

As Deputy Agriculture Minister Elena Fastova stated in early December at parliamentary hearings in the State Duma, the unification of subsidies retains all existing subsidy areas.