Agrarians ask the government to turn down subsidies reducing

Ukrainian agrarians appealed to the Prime Minister of Ukraine and Members of Parliament with a request to abandon plans to cut subsidies for agricultural producers by 2 times in 2018.

This is reported on the website of the Association Pig Breeders of Ukraine (APBU).

Corresponding appeals were sent to Prime Minister Vladimir Groysman, acting Chairman of the Verkhovna Rada Committee on Agrarian Policy and Land Relations Alexander Bakumenko and Chairman of the Parliamentary Committee on Budget Issues Andrei Pavelko.

The appeal was signed by the Ukrainian Agrarian Council, Agrarian Union of Ukraine, Ukrainian Agrarian Confederation, Ukrainian Agrarian Business Club and Poultry Union of Ukraine.

According to the text of the appeals, agrarians are concerned about the proposed reduction in the amount of subsidies for agricultural producers by two times from UAH 4 billion to UAH 2 billion.

"Unlike other types of state support, the payment of subsidies is automatic, which minimizes corruption. In favor of this mechanism, the statistical data shows the cessation of decline in the number of livestock in 2017," the association notes.

On the other hand, the agrarians draw the attention of government officials to the unjustified increase in spending on other directions. So, the volume of funds for partial compensation of the cost of agricultural machinery of Ukrainian production is planned to increase from UAH 500 million to UAH 945 million. According to associations' estimates, in 2017 the utilization rate of these funds will not exceed UAH 250 million, and in order for it to reach the amount it is proposed to budget in 2018, the total cost of manufactured and sold Ukrainian agricultural machinery should increase by 2.5 times.

In addition, farmers noted that planned expenditures under the program "State Support of Livestock Production" (partial reimbursement of livestock complexes and milking parlors) of 1.6 billion UAH exceed the demand. According to the estimates of the Association of Milk Producers and the Association "Pig Breeders of Ukraine", the total amount of necessary financing is up to 400 million UAH. Therefore, agrarians proposed to reduce the planned amount of expenditures under this program to UAH 700 million.

Agrarian associations called on the authorities to take into account their proposals to the draft law "On the State Budget of Ukraine for 2018" and to involve representatives of relevant public organizations in discussing any issues related to the state support for agriculture.

Reference: according to the president of the Ukrainian Agrarian Confederation (UAC) Leonid Kozachenko, the amount of the state support, which is planned in the draft State Budget 2018, can be increased by 2 billion UAH to 8.8 billion UAH.