In 2023, state support for the agro-industrial complex may exceed 500 billion rubles

The Ministry of Agriculture, together with the Ministry of Finance, is considering the possibility of increasing support for the agro-industrial complex. In 2023, its volume may exceed 500 billion rubles. Elena Fastova, Deputy Minister of Agriculture, spoke about this in an interview with Rossiyskaya Gazeta during the St. Petersburg International Economic Forum.

The possibility of increasing support for the agro-industrial complex is being worked out as part of the preparation of the budget for 2023-2025, the Deputy Minister specified. She explained that the current program for 2023 provides for funding in the amount of 375.9 billion rubles, it is expected to increase by 124 billion rubles. In 2022, 355.5 billion rubles were initially allocated to support the agro-industrial complex, but the government allocated an additional 240 billion rubles, Fastova recalled. This is an unprecedented level of support for the Russian agro-industrial complex, the Deputy Minister emphasized.

Agricultural producers surveyed by Agroinvestor unanimously argue that an increase in subsidies by 124 billion rubles. does not compensate for the current increase in costs. Thus, the chairman of the board of directors of the Komsomolets breeding farm (Zabaikalsky Krai, grows rapeseed, malting barley, etc.) Valery Nagel said that, in general, state support remains at the same level as it was, and the agro-industrial complex sector in the region did not feel significant improvements. “The only thing we have added is a subsidy for growing oilseeds,” he said. Nagel believes that if exports were not now limited by duty, earnings would be 10 times more than the state subsidy. 

According to Nagel, agriculture in Transbaikalia is not actively developing, although the region has huge growth potential for any sector of the agro-industrial complex. He believes that state support should be increased in the region, since the sown area is only 200 thousand hectares out of a possible 2 million hectares. “Targeted support for our region is necessary. In other parts of RUSSIA, almost all the land is being cultivated, and work is being done effectively there,” says Nagel.

At the same time, in his opinion, subsidies are needed not only for land reclamation, but also for the purchase of equipment and other needs of the agro-industrial complex. “In this case, agriculture in Transbaikalia will begin to develop actively in a year or two,” Nagel is sure.​

Alexander Nezhenets, General DIRECTOR of the Progress agricultural firm (Krasnodar Territory), said that as of June 1, his farm had exceeded costs by 110 million rubles. comparing with the previous year. At the same time, the received subsidy amounted to 22 million rubles. “The big minus is the EXPORT duty. Perhaps we would not need subsidies and additional funding if the duty were abolished. We would feel much more confident,” he estimates.

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Nezhenets also believes that the increase in funding does not compensate for the increase in costs for two main reasons: the company sells goods at a discount, but buys at a premium. “The gap is only widening. I see no prospects for smoothing it. I believe that the economy in agriculture will seriously deteriorate,” Nezhenets concluded.