KYIV. Oct 5 (Interfax-Ukraine) – Farming associations have asked the Ukrainian prime minister and lawmakers to drop the plans to halve subsidies for agricultural producers announced in the draft national budget for 2018, according to a posting on the website of the Ukrainian Agrarian Council.
In particular, the associations are alarmed with the proposal to cut the subsidies for agricultural producers from UAH 4 billion to UAH 2 billion in the draft national budget for 2018.
In contrast to other types of assistance from the state, subsidies are paid automatically, minimizing corruption. Statistics data about the stop of declining the numbers of livestock at farms in 2017 is evidence of the effectiveness of the subsidies.
On the other hand, the farmers draw the attention of government officials to an unjustified increase in spending on other items. The amount of funds for partial compensation of the cost of agricultural machinery made in Ukraine is planned to increase from UAH 500 million to UAH 945 million.
According to associations’ estimates, this year the use of these funds will not exceed UAH 250 million. For reaching the amount that is proposed in the budget, the total value of manufactured and sold Ukrainian agricultural machinery should increase 2.5-fold next year.
In addition, the associations said that the planned spending under the program on support of livestock by the state of UAH 1.6 billion also exceed the need. The associations proposed to reduce the planned amount of expenses under this program to UAH 700 million.
According to the calculations of the Association of Milk Producers and the Association of Pig Breeders of Ukraine, the total amount of required financing is up to UAH 400 million.
Representatives of the Ukrainian Agrarian Union, Agrarian Union of Ukraine, Ukrainian Agrarian Confederation, Ukrainian Agribusiness Club and the Union of Poultry Breeders of Ukraine signed the address to the prime minister.
