The budget committee of the Verkhovna Rada supported the initiative of the people’s deputies to increase the incentives for cheaper loans for farmers in 2019 from UAH 127 million to UAH 818 million, Mikhail Sokolov, deputy head of the Ukrainian Agrarian Council, said about this on his Facebook page.
The committee did not support the establishment of a limit on the total amount of compensation in the amount of 10 million per hand, the expert notes. This would guarantee that the money would go mainly to small and medium farmers. However, this is an advantage. But that is the only “pro”.
The growth of financing under the credit cheapening program will occur due to a reduction in compensation for the purchase of domestic agricultural machinery. But this is even good because the amount allocated for the program was not chosen by the agrarians. In 2017, out of 500 million UAH, 134 million were used. This is a similar situation, although 945 million UAH have already been allocated.
“It’s bad that the list of equipment that can be purchased under this program is likely to expand. And this will increase the use of funds under this program,” Sokolov believes.
The committee also completely rejected the edits regarding:
– allocation of funds for the payment of subsidies for milk, meat, vegetables, fruits – all those products that are consumed in Ukraine and not exported. Producers of these products suffer from the abolition of VAT;
– support payments to all agricultural producers who process less than 500 hectares, and not just those who formally registered the farm;
– payments of subsidies to small agricultural producers in proportion to the proceeds from legally sold agricultural products. A very simple mechanism that would allow farmers to actually get their money. By the way, this year the “farm billion” remained practically unused;
– reduction of payments for unclaimed agrarians programs that led to the failure of the budget;
At the same time, the committee supported the renaming of the “livestock support” program, as a result, now it can support the construction of processing plants and elevators.
“I knew that our livestock industry was in crisis, but the crisis in processing and grain elevator business is the new one. The livestock breeders were cheated, their program no longer belongs to them,” Sokolov notes.
As a result, he believes, in 2019 everything will remain as it was: a substantial part of the allocated money will remain in the budget, and the support promised in 2016 for those farms that have suffered from the abolition of the special regime of VAT will remain at a meager level.