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Ukrainian Agrarian Ministry seeks UAH3 milliard as farmers 2017 State support
30.08.2016 19:22 "Agro Perspectiva" (Kyiv) —
Ukrainian Ministry of Agrarian Policy and Food has proposed spending UAH3 milliard 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, UNIAN says referring to the Ministry press service report.
«At least UAH3 milliard 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 quotes Agrarian Policy Minister Taras Kutovyi as saying.
As to the Minister, farmers face 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, the Minister admits.
As to Kutoviy, 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 to the earlier report, Agrarian Policy Minister Taras Kutovyi had earlier said that a draft law had been developed to support small and medium agricultural companies, where each company would receive funding from the financial aid budget for every product manufactured or sold. As to the Minister, he had expected the law to be adopted this autumn.
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