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Government improves agrarian sector support programs and expands agribusiness development opportunities, claims Volodymyr Groysman

11 January 2018

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 January 11, 2018
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Government improves agrarian sector support programs and expands agribusiness development opportunities, claims Volodymyr Groysman

The Cabinet of Ministers of Ukraine, in the framework of the implementation of objectives of the development of the agrarian sector, improves agrarian sector support programs and enlarges the opportunities of agribusinesses, primarily opening up access of farmers to available financial resources. This was stated by Prime Minister of Ukraine Volodymyr Groysman during a meeting on the issues of agricultural sector development.

In the context of livestock development, the participants of the meeting noted that the range of support tools is quite varied: from direct budget subsidies for the development of young stock to the introduction of effective lending for the creation of new livestock complexes with the possibility of compensating the primary loan and establishing an effective loan rate. The terms of use of existing opportunities are flexible and dependent on market conditions and community demand. Meanwhile, target regulations that will enable the availability and efficiency of the demanded financial product should be shaped by the end of January.

With regard to the support for farming, the Head of Government drew attention to the need for the speedy elaborating of mechanisms for the introduction of effective lending, tools for compensation of the cost of equipment on condition of the purchasing of equipment for each particular farm, as well as the support of cooperatives.

Background

The agrarian sector of Ukraine is determined among the locomotives of the national economy, and therefore, an issue of effective Government support for agro-production appears one of the priorities of the budget process. Moreover, the focus is on supporting small and medium-sized businesses, capable of filling the domestic market and strengthening the export opportunities of large farms. According to official figures, there are currently more than 79 thousand agribusinesses operating in Ukraine, of which 29 are large holdings, almost 8 thousand are small and medium enterprises, and the rest are micro-enterprises, including small family farms. The amount of the state program of animal husbandry support this year is set at UAH 4 billion in the State Budget, the amount of support for farming is at least UAH 1 billion. Another sum worth about UAH 1 billion is to be directed to the program of compensation of the cost of technology of Ukrainian production.

CMU 

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