The Cabinet of Ministers of Ukraine approved and started implementation of a number of decisions designed to make 2018 a qualitative breakthrough in the agricultural sector. This was said by Prime Minister of Ukraine Volodymyr Hroisman, the Government portal reports.
"This year we will have tools for a qualitative breakthrough in the agrosphere. And the decisions have already been taken, " says the Prime Minister.
He explained that it was a program of direct support to farmers, compensation for the cost of building new dairy farms and cheaper loans for such construction, compensation for the cost of agricultural equipment of domestic production, as well as installments to pay VAT when importing unique equipment and processing lines.
"So it will be this year. This will make it possible to rapidly increase the number of livestock and production volumes.
Interest (to these programs) is, - says Volodymyr Hroisman. - The task is to raise the economy and create new enterprises. This applies to all spheres."
In mid-January 2018, the Cabinet of Ministers of Ukraine finally agreed on the mechanisms for supporting agricultural producers, primarily the livestock sector, and expects that the use of all the developed solutions will allow to increase significantly the number of dairy-commodity complexes, farms, cattle, milk production this year and other agro products. As stressed by the head of government, it is primarily about incentives for medium-sized agribusiness - both in the crop sector and in the livestock segment.
At the suggestion of the Government, the total resource allocated to support livestock production this year will amount to 4 billion UAH. The funds will be directed primarily to support the construction of new farms and complexes - or to reduce the cost of loans for construction or to compensate some of the producers' own funds spent on construction. The maximum credit resource is 10 million euros per commodity complex at 3% per annum for 5 years.
The maximum amount of compensation is 25% of the cost. If necessary, according to the results of the first half-year of the programs, their mechanisms can be adjusted.
Also, the Government has approved a program for the development of horticulture. Budget allocations for this segment are about 300 million UAH, the purpose of investment is to increase the garden areas of more than 3 thousand hectares, attract new technologies for storage and processing of fruits, and create about 30 thousand new jobs.
Special attention is paid to the program for the compensation of the cost of agricultural machinery, the amount of budget financing in 2018 is 1 billion UAH, as well as the program for the development of farming with the volume of budget financing, also 1 billion UAH. At the initiative of the Government, the funds will be used to seriously reduce the cost of credits - up to 1% of the loan rate for assistance in purchasing equipment, seed selection, and provision of advisory services to farmers. The only requirement from the state is full and honest registration of livestock and land by farmers.