Ukrainian Agrarian Policy and Food Minister Taras Kutoviy has initiated an increase in the amount of state support of Ukrainian agribusinesses from UAH 65 million, or US$2.42 million, in 2017 to UAH 1 billion, or $37.16 million, in 2018, according to the ministry`s press service.
”This year, the Ukrainian State Farmers Support Fund provides for UAH 65 million in financial support to farmers. However, I would like this sum to grow up to UAH 1 billion next year. If this can be done, then qualitative systematic changes will occur and people will receive working capital,” press service quoted Kutoviy as saying.
According to the report, if the amount of financial assistance is increased, the number of fund recipients will also grow.
”State support will be given to those stipulated by laws as farmers. Limitations on the volume of cultivated land will be established as well,” the press service added.
As UNIAN reported, the Cabinet in early February approved procedures for monthly proportional distribution of UAH 4 billion in subsidies to support the agricultural sector in 2017. The financing is designed to compensate agricultural producers` losses from the abolition of the special VAT regime. The funds will be provided to agricultural producers that are primarily engaged in livestock production and growing grapes, other berries, nuts, fruit and vegetables, as well as tobacco and sugar beets. At the same time, no more than 50% of the total amount will be allocated for poultry breeders.
Kutoviy earlier estimated that more than 15,000 small- and medium-sized farm producers would receive the subsidies as part of direct state support.
In total, the government has decided to allocate UAH 5.4 billion to support the agrarian sector in 2017, which is 20 times up on 2016, accounting for 1% of gross agricultural production. This provision on 1% of agricultural GDP is stipulated in the Budget Code for 2017-2021. According to Kutoviy`s forecasts, the sum of state support in 2018 may exceed UAH 6 billion.