FAS has criticized subsidies of the Ministry of agriculture

FAS has criticized subsidies of the Ministry of agriculture

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The Agency fears that the money will reach to all farmers


Photo: NEWS/Mikhail Tereshchenko

The Federal Antimonopoly service (FAS) made comments to the distribution system of state subsidies in agriculture. According to authorities, after the decision to give regions more rights to the distribution of funds subsidies to many farmers simply do not reach. About the problem with the subsidies claim milk industry representatives and crop insurance.

In its final report last year, the FAS has noted that the decision on which regions have the right to distribute subsidies, reduces the predictability of opportunities for private agribusiness entities (including small farms). Also, the service believes that “there remains the possibility of imposing excessive requirements on potential recipients of grants”.

Earlier, the Ministry of agriculture gave the farmers the 54 form of various subsidies. Federal funds were directed to development of specific industries (e.g., dairy, meat, etc.), and the regions have not had the opportunity of their redistribution (that is, for example, reducing subsidies for dairy producers in favor of mycoplasmatales). Now in the seven regions directed subsidies to large volumes and the uniform subsidy. Of distribution between producers engaged in government entities at its discretion.

FAS emphasizes that the rules of distribution of grants need improvement, as they “contain a number of provisions that may lead to the creation of discriminatory conditions for individual farmers and for the region as a whole.” While the office considers it necessary to strengthen the monitoring of the situation with the distribution of subsidies to prevent violations. In other words, to make sure was not deprived of certain industries or farmers.

The Ministry of agriculture “news” said that the Agency would study the report and consider the proposals of the FAS in the improvement of the mechanism of state support of the industry, including the rules of preferential crediting.

— As of April 13, 2017 by the Ministry of agriculture adopted a decision on the approval of soft loans for 4903 borrowers for the total amount of subsidy of 17.5 billion rubles (80% of the prescribed amount). This is 3-5 times higher than in the same period last year (depending on region), — said in the Ministry of agriculture.

The Ministry also noted that a shortfall existed in the old scheme of subsidised loans.

— So, at the end of 2016, issued 1.2 trillion roubles short-term loans, of which subsidized loans of 200 billion rubles, — said in the Ministry of agriculture.

According to the Executive Director of the Russian Union of dairy industry enterprises Ludmila Manicou in 2017 due to problems with obtaining subsidies, milk production may decline.

— In the priority regions are the major producers, to the rest of the subsidy almost reach. In addition, the regions do not provide a proportional subsidy, that is, channel funds to certain sectors of agriculture, while others remain without support. We have a large payback period and substantial investment is needed to increase production. But many regions prefer to subsidize the industry in which the payback period is significantly lower, for example, in the production of meat, — said Lyudmila Manicka.

The Ministry of agriculture, on the contrary, noticed that small forms of managing in the new scheme, in fact, got reserved a 20 percent quota in the total volume of subsidies on preferential credit.

The leader of the Dairy Union of Russia Arkady Ponomarev, in turn, confirmed that “the dairy industry is the most capital intensive and Dolgorukaya in agriculture”.

— It requires a clear understanding of the prospects. Now, with the failure of the planned targeted support, no understanding. There are no clear rules for the distribution by industry of funds within the region. And without a predictable and long-term subsidy policy both at Federal and regional levels of the dairy animal may be paralyzed, — says Arkady Ponomarev.

In his opinion, “the General administration in agriculture should be left for the Federal center,” but the allocation of resources should take into account the specialization of regions.

About the issues with the new principle of distribution of grants was also announced by the agricultural insurers. According to the Chairman of the Presidium of the National Union of agricultural insurers Innokenty Egorov, the regional authorities do not want to send money in this industry.

— As the state provides an opportunity for regions to take control of the subsidies, often money to support the insurance does not reach, — said Innokenty Egorov.

At the end of last year, the number of insured farmland with state support fell by half compared with 2015, the reference on the progress and results of implementation of the state program on development of agriculture in 2016. According to Innokenty Yegorov, in 2017, the rate of insurance may be reduced again.

The regions have been given greater autonomy in the allocation of subsidies for the development of agriculture after the adoption of the resolution of the RF government “On granting and distribution of subsidies from the Federal budget to budgets of subjects of the Russian Federation to promote the achievement of the targets of regional programs of development of agroindustrial complex”. It was approved December 30, 2016.