The Ukrainian Stock Breeders Association proposed to the Government ways of reviving the village

Submitted by bashun on Fri, 11/17/2017 - 15:31

On November 15, 2017, the chairman of the Ukrainian Stock Breeders Association, Iryna Palamar, took part in a meeting chaired by First Vice Prime Minister of Ukraine - Minister of Economic Development and Trade Stepan Kubiv to find solutions to the problematic issues of providing subsidies for housing and communal services to peasant producers milk.

The meeting was also attended by People's Deputies of Ukraine, representatives of the Ministry of Finance of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine, in particular, the Deputy Minister of Agrarian Policy on Supporting Farmers, Rural Territories and Agricultural Cooperation Viktor Sheremeta, other authorities and industry associations.

 In general, apart from the issue of granting subsidies for housing and communal services to peasant producers of milk, a whole range of issues of agriculture was raised at the meeting. Among them were discussed the issues of the revival of the village, the development of livestock, dairy and beef cattle, agricultural cooperatives and personal peasant farms. The participants of the meeting in the course of the discussion came to a common opinion that to increase milk production it is necessary to support the development of personal peasant farms and cooperation.

Iryna Palamar pointed out in her speech that the only way to increase milk production, increase its quality and price competition, is already today the elimination of unscrupulous intermediaries between the producer and the processing enterprise. It is the intermediaries who dictate the price of milk, and the peasant, without an alternative, is forced either to take milk at low prices, or to refuse to produce it altogether. Through the handicrafts of such intermediaries, the quality of the processing costs also increases. Therefore, the state should support the development of agricultural cooperatives, thanks to which the peasants themselves could set a price for jointly produced milk, and processing enterprises - to get high-quality products.

 An equally important issue is the production of beef, which is a welcome product for importers for export. Unfortunately, beef producers today are limited in development for the reason that they do not have the opportunity to purchase calves for fattening before the 1st month for fattening. According to producers it is extremely difficult to form large marketing parties of beef, in the production of which it is expedient and possible to attract investments into the industry. After all, while the peasants are not interested in feeding calves with milk until the age of fattening, as this milk is more profitable to hand over and receive money. Therefore, very small newborn calves are handed over to slaughter, the meat of which is in fact unfit for consumption, and the economy loses most of the lost profit (added to the fattening cost).

A solution to this problem can be the government compensating the peasants for the cost of milk for feeding calves, the Ukrainian Stock Breeders Association has repeatedly suggested that the government fix it in the relevant state program.

Iryna Palamar also touched upon the issue of subsidies for farmers in her speech, they are at risk of losing due to the fact that, according to the current legislation, the incomes of personal peasant farms and payments in agricultural cooperatives are included in the aggregate income of citizens when calculating subsidies. Thus, the residents of the village are significantly financially demotivized to participate in cooperatives (and legal agricultural activities in general), because they may lose the right to subsidies, which is received by the majority of villagers.

 By solving the problem of the USBA, amendments to Part 2 of Clause 8 of the Decision of the Cabinet of Ministers of Ukraine No. 848 of October 21, 1995 "On Simplification of the Procedure for Granting Subsidies to Reimbursement of Costs for Payment for Housing and Utilities, Acquisition of Liquefied Gas, Solid and Liquid Furnace household fuel ", namely - to exclude from the aggregate income of persons" charge on shares (income from leasing), payments in agricultural cooperatives, income of personal peasant farms and co-operative payment a member of a production agricultural cooperative, as well as funds, is returned to a member of the agricultural service cooperative due to the excessively paid cost of services provided by the cooperative if their amount for the year does not exceed 100 times the minimum wage established by law for January 1 of the reporting (tax) year. "

This issue has already been raised repeatedly by the Ukrainian Stock Breeders Association.

"Yes, back in December 2016, on behalf of the Ukrainian Stock Breeders Association, we appealed to the Cabinet of Ministers of Ukraine and the Ministry of Social Policy of Ukraine with the issue of introducing appropriate changes in the legislation," says Iryna Palamar. "I think that the approach to accrual of subsidies that exists now is unfair and discriminatory against the peasants, who are working hard on bread and are now at risk of losing a state subsidy to pay for utility services."

 As a result of the meeting, the participants reached a common decision on the need to develop cooperatives, and to provide state support not only to farmers but also to owners of personal peasant farms and agricultural cooperatives, the importance of extreme support to animal husbandry, dairy and beef cattle breeding, and a radical revision of state policy in the field of animal husbandry.

 To this end, it was proposed to develop a comprehensive state program that would cover a whole range of issues relating to the revival of the Ukrainian village and the development of the agricultural cooperative movement: the development of veterinary affairs in the countryside, the provision of personal peasant farms with high-quality cattle genetics, which allows for more milk and higher profitability, production of meat direction cattle (fattening of bull-calves, compensation of the cost of milk for feeding calves, etc.), making changes in legislation on taxation, which would be revenue from membership in the cooperative would not have been included in the total income of farmers and a number of other issues.

 As a result of the meeting, an order was accepted:

The Ministry of Agrarian Policy, together with the Ministry of Economic Development, the Ministry of Finance, the Ministry of Social Policy, the State Statistics Committee and the DFS,

the introduction of a mechanism for determining the cost of milk is produced in personal peasant holdings;

establishment of a minimum procurement price for milk purchased in private peasant farms at a level not lower than its cost;

creation of favorable conditions for the development of cooperation in rural areas, including with the aim of establishing economically sound procurement prices for milk;

improving the system of providing social guarantees to members of private peasant farms, including their pension provision;

settlement of the status of personal peasant farms, which have attached a land share (share) to such farms.

 As a result, the coordinated proposals are submitted to the Cabinet of Ministers in accordance with the established procedure.

 The Ministry of Finance, in conjunction with the Ministry of Agrarian Policy and the DFS, to work out the issue of improving the taxation system for personal peasant farms, including farms, has added a land share (share), including in terms of strengthening control over the payment of taxes and preventing their reduction and understatement of procurement prices for milk.

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