28 October 2016

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Ukraine Agrarian Ministry seeks UAH 3 bln in state support for farmers in 2017

Ukraine's Ministry of Agrarian Policy and Food has proposed spending UAH 3 billion in state funds in 2017 to support small and medium-sized agricultural producers cultivating up to 500 ha of land or to provide tax breaks for them, according to the ministry's press service.

Photo from UNIAN
Photo from UNIAN

"At least UAH 3 billion is required for direct financial support of small and medium-sized farmers. The ministry seeks to ensure that these funds will be included in next year's budget. If the funds are not available, we will have to look for an opportunity to subsidize farmers through preferential tax treatment. But this option is less favorable since fiscal preferences always leave room for different schemes," the press service quoted Agrarian Policy Minister Taras Kutovyi as saying.

The minister said farmers faced difficulties in mobilizing loan funds to buy new equipment or learn new technologies.

"It is almost impossible to get a loan with a land bank of 500 ha," Kutovyi remarked.

Therefore, farmers are compelled to sublease land to large agricultural holdings, according to the minister. The report noted that the state support for farmers would not be limited to financial aid. The ministry intends to encourage manufacturers to export products by creating an office to promote small agricultural producers on the world market.

As UNIAN reported earlier, the agrarian minister previously stated that a draft law had been developed to support small and medium agricultural enterprises, where each enterprise would receive funding from the financial aid budget for every product manufactured or sold. The minister said he expected the law to be adopted this autumn.

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