Only 8% of farmers met the conditions of state support in 2020

State support for peasant farms (PFH) in RUSSIA does not provide the necessary growth rates for this segment of the agro-industrial complex. Business Ombudsman Boris Titov came to such conclusions when presenting his annual report to the President of the Russian Federation.

“The so-called unrelated (per hectare) support in the form of subsidies is difficult to access for most peasant farms due to excessive associated requirements. So, if in 2019 8.7% of farmers in Russia received such support, then in 2020 - 8.2%,” the report says.

Fulfillment of all conditions for granting a subsidy leads to a significant increase in costs that are not covered by the subsidy. This is due to the fact that in order to receive subsidies in various regions, it is required, in particular, to use seeds, varieties and hybrids included in the State Register of Breeding Achievements, to insure crops in a situation where it is almost impossible to receive compensation under an insurance policy, to phosphorite and gypsum sown areas , conduct a comprehensive agrochemical and environmental-toxicological survey of sown areas.

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Concessional lending from commercial banks is even less accessible. According to the Ministry of Agriculture of the Russian Federation, in 2020 only 4% of the total number of registered peasant farms managed to get it. Banks demand from farmers an excessive package of documents.