The agrarian meeting: the producers opposed the arbitrariness of officials and put forward their demands for the distribution of budgetary subsidies

More than 100 producers of livestock products have put forward the demand that the Ministry of Agrarian Policy urgently reconsider completely discredited mechanisms for using state subsidies. Meanwhile, the agrarians are going to protest.

The USBA has collected manufacturers to discuss a subject painful for cattle breeders: distribution of budgetary grants, to be exact - opaque use of budgetary grants from the Ministry of Agrarian Policy under old absolutely discredited and inefficient schemes.

As is known, in 2018, 4 billion UAH was allocated from the state budget on the support of livestock, but the procedure for using the resources of the Ministry of Agrarian Policy was adopted behind the producers, without proper public discussion with them and the participation of the public council, which took place already after the fact. In the Ministry of Agrarian Policy prepared for the government, the resolution on the allocation of expenses did not take into account all proposals of producers, which, in particular, were provided by the Ukrainian Stock Breeders Association.

"Thus, there is an urgent need to unite producers together against the arbitrary actions of officials," says the chairman of the Ukrainian Stock Breeders Association, Iryna Palamar, in her speech to the producers at the meeting.

- We have already received several important victories in this matter; we were supported by the Ministry of Economic Development and Trade, as well as the National Committee of Industry. It is enough to put up with the corruption schemes of the Ministry of Agrarian Policy, according to which today only the largest producers get subsidies from the state for "payoffs". We are deeply concerned that this year unprecedented support to the livestock sector by the Government in the 4 billion UAH that the producers, especially medium and small, are in great need, can also fall into the hands of a narrow group of approximate farms by exhibiting different "seemingly legitimate" requirements will go to illegal bureaucratic schemes to receive. "

In total, the meeting gathered more than a hundred producers of livestock products from all corners of Ukraine. The hall where the meeting was held could hardly contain all those willing to express their dissatisfaction with the actions of the officials.

Participants of the meeting supported the proposals of the USBA to the government on the financing of Ukrainian livestock, formed on the basis of public discussion and consultations with manufacturers and set out in a resolution to be sent to the Prime Minister of Ukraine Hroisman V., First Deputy Prime Minister - Minister of Economic Development and Trade of Ukraine Kubiv S., Minister of Agrarian Policy and Food of Ukraine, First Deputy Minister Martyniuk M., Ministry of Economic Development and Trade of Ukraine, People's Deputies.

First of all, the participants of the meeting and the USBA require that the procedure for using the funds provided for in the state budget to support the livestock sector be approved only after it has been finalized, taking into account the following suggestions and comments from producers to:

1. Provide a budget subsidy for pork producers, at least in the amount of 2 UAH per kilogram of pork as a partial support canceled quasi-accumulation of VAT. Producers of pork because of the cancellation of quasi-accumulation of VAT already incur serious losses: a decrease in the liquidity of enterprises, a shortage of working capital, an increase in the payback of investment projects, and need alternative support.

2. Increase the amount of subsidy for the content of cows to 2000 UAH for 1 head instead of 1500 UAH.

3. Introduce compensation for interest on loans to current assets of the existing enterprises of industrial pig breeding and cattle breeding (not only for sheep breeding, goat breeding, beekeeping, fur farming, rabbit breeding, sericulture, aquaculture).

4. Simplify the receipt of permits and approval of project documentation for the construction and reconstruction of livestock farms and complexes to obtain partial state reimbursement for the costs incurred during the completed construction and reconstruction stages this year.

5. To hold consultations at the governmental level with banks in order to motivate them to credit pork producers. Unfortunately, because of problems with ASF, banks consider pig projects as risky and do not want to lend to them, and insurance companies insure risks, therefore state compensation for the construction or reconstruction of livestock farms and complexes for pork producers is not available.

6. Provide for partial reimbursement of the cost of construction and reconstruction of enterprises of the infrastructure of livestock complexes: technological feed mills and workshops, feed production plants in order to increase the localization of their own production of feed.

7. Introduce payment of partial reimbursement of the cost of construction and reconstruction of livestock farms and complexes quarterly (and not at the end of the year) on the basis of applications for which the commissions made positive decisions and as the stages of construction and reconstruction are put into operation.

8. Deregulate the activities of local commissions that decide on the allocation of state support, by narrowing their functions only to receiving documents from interested economic entities and approving lists of recipients of state support. Commissions often work in manual mode and decide to make and not give state support.

9. Ensure that the commissions have no influence on the partial reimbursement of the cost of construction and reconstruction of livestock farms and complexes by taking into account the conclusions of the technical and economic expertise.

10. Ensure the accessibility of the public to participation in the composition of commissions (information policy on the establishment of commissions and the possibility of participation in them by the public)

11. Make an open register of subjects of state support recipients for partial reimbursement of the cost of construction and reconstruction of livestock farms and complexes, milking parlors, enterprises (workshops) for processing and storing agricultural products.

All present unanimously supported the resolution.

The proposals of the USBA stated in the submitted resolution were approved by the participants who actively joined in its discussion: put forward their proposals, additions, which will also be included in the finalized version of the resolution.

As a result, an initiative group was formed among the participants of the meeting, which already in the next few days will visit the meeting of the Government on this issue, where the requirements of producers will be publicly presented to the members of the Cabinet of Ministers of Ukraine.

The agrarians also formed a committee to monitor the use of subsidies, designed to ensure proper public control over the use of public funds allocated to support the industry.

However, if the proposals of the producers are not adopted, on March 6 the agrarians intend to go out with a protest action under the Cabinet of Ministers of Ukraine, to which manufacturers are ready to rally their like-minded people from all corners of Ukraine.

"Only together - we are a force that officials will have to reckon with," says Iryna Palamar as a result of the event. "We will stand up to the end, and we will get our rights and the money that belongs to us!".