Agriculture

The Russian government is updating the agriculture and develop the agro-industrial complex

A comprehensive discussion of the fate of agro-industrial complex (AIC) of Russia was held in the framework of the forum “Russian field day” in the Altai region.

According to the Minister of agriculture A. Tkachev: “For the next 5 years, we have ambitious plans for the development of agriculture based on project leadership tasks on import substitution. It is important to note that all the tasks are impossible to implement fully without technical re-equipment of the industry.” “In 2016, thanks to the Russian Government decision, 10 billion rubles have been allocated to support the renovation of agricultural machinery. This will allow already this year to purchase up to 20 thousand units of agricultural machinery,” – said Alexander Tkachev.

At the moment about 600 thousand tractors and combinesn are involved in agriculture. 50% of the equipment is half worn. Instead of the required 20 to 30 thousand pieces of new equipment bought in 2-3 times less, and in 2015, the Ministry of agriculture of Russia has provided a discount on agricultural equipment for farmers to 25%, and for the Crimea, Siberia and the Far East up to 30%. To update the fleet of agricultural machines has also established the Institute for the development of the leasing company. In 2015, additional regional programs operated in 52 regions, in 2016 it is planned to introduce them in more than 55 regions.

The proposal of the Minister of Agriculture of Russia to support the purchase of agricultural machinery was fully supported by industry experts. Nicholas T. Sorokin, Director of the research Institute of mechanization and Informatization of agrochemical support of agriculture (GNU VNIMS) commented for “e News” the Minister’s proposal A. Tkachev and worrying about maximum effectiveness of the programs proposed for the consideration of additional measures (here are the comments of Nikolay Timofeyevich full):

N. Sorokin – doctor of economic Sciences, Honored Builder of the Russian Federation,

Active state Advisor of the Russian Federation 3rd class,

laureate of Government prize of the Russian Federation and the first prize A. N. Kosygin.

“Undoubtedly, the Minister is right, it is necessary to develop measures that stimulate production of Russian agricultural machinery. However, those measures, which are listed, is not able to provide a full-scale re-equipment of the industry of agricultural machinery, which today can be considered a running one “St. Petersburg tractor plant and the other factories are not working. Of the five combine plants left alone “Rostselmash”.

Among the drastic measures that should be implemented in the next 3-5 years with the Government of the Russian Federation, to ensure the operation of agricultural machinery enterprises in the framework of import substitution, should be:

1) Provide the agricultural machinery enterprises tax holidays of 3 to 5 years in order to have its own funds for development and to eliminate the exorbitant costs of loans.

2) For enterprises of agricultural machinery needs to be abolished completely “incomprehensible” VAT to enable them to upgrade production of agricultural machinery and reduce it to agricultural producers, which ultimately affects the cost reduction in the production of agricultural products.

3) it is Necessary to change the nature of state support of agricultural machinery manufacturers, giving them a long interest-free credit facilities up to 8-10 years under the guarantee of the Government of the Russian Federation. During the years of perestroika, the technical level, made in Russia agricultural machinery lagged behind the European countries for decades. To improve the situation, we need targeted state support program of agricultural machinery manufacturers for 5-7 years.

4) the Government should consider its direct participation in the modernization and technical re-equipment of enterprises of agricultural machine, as the fact we learn from the experience of Germany, France, Japan. Without such measures by the Russian Government all this will be slow process on political affiliation, but no positive results for import substitution will not.”

Sources:

Institute of agricultural mechanisation and informatisation, Russian ministry of Agriculture.