In 2018, 6.3 billion hryvnias of state support allocated to farmers were not used. To make sure history won’t repeat itself next year, key agribusinesses and the All-Ukrainian Agrarian Council have submitted their proposals to the Verkhovna Rada of Ukraine Committee on Budget, writes “Agro Center”.
“In general, we characterize the situation that has developed as catastrophic because there hasn’t been such a low level of using allocated funds in the history of Ukrainian agribusiness. It is a precedent. The reason for this is the redistribution of money in those sectors where agrarians don’t need them, and a refusal to finance farmers who do. In addition, there are various administrative obstacles to obtaining funds,”
said Mikhail Sokolov, Deputy Head of the Ukrainian Agrarian Council.
As of August 20th, according to data from the Ministry of Agrarian Policy and Food of Ukraine, only 777 million hryvnias were used, 12% of the total. Thus, the Ukrainian Agrarian Council made a proposal for a budget draft for the next year to increase the amount of money for compensating for interest rates on loans. Also, members of parliament refused to introduce a restriction on the amount of compensation – no more than 10 million hryvnias per person. Members of the Ukrainian Agrarian Council believe that these funds will again be distributed among the largest players in the market and not received by small and medium agribusiness.
“It can be said that the parliamentary budget committee and the Verkhovna Rada have refused to limit the amount of money received by the largest agricultural holdings, as well as to reduce inefficient programs and directions. In the end, this will lead to the fact that next year the money allocated for state support of the agricultural sector will be unused,”
said Mikhail Sokolov.
In 2019, the budget funds for farmers are planned to be distributed as follows:
1.38 billion hryvnias – for financial support of agricultural producers;
4 billion hryvnias – for support of animal breeding;
800 million hryvnias – for support of farms;
127 million – for cheaper loans for farmers.