In the state budget of Ukraine for 2022, 4.6 billion hryvnyas are expected for the development of the agricultural sector. A significant part of them is planned to be allocated for traditional assistance to agrarians (reduction in the cost of loans, reimbursement of equipment purchases, etc.), as well as more than UAH 700 million. envisaged for land reform.

Recall that in 2021, state support for farmers amounted to UAH 4.5 billion, in 2020 - UAH 4 billion, in 2019 - UAH 5.9 billion, in 2018 - UAH 6.3 billion.

For 2022, they proposed both traditional programs (reimbursement of the cost of agricultural equipment, cheaper loans and insurance payments, development of animal husbandry, crop production, horticulture, viticulture and hop growing, subsidies for irrigation for 1,200 agricultural producers) state support within UAH 4.6 billion and new ones.

Also, UAH 715 million is provided for land reform:

It is proposed to allocate UAH 329 million for the creation and updating of topographic maps and plans for 565.9 thousand km²;

for inventory of 1.7 million hectares of state land - UAH 220 million;

for the development of reclamation complexes, the maintenance of water management systems - 2.7 billion UAH.

In addition, during the second reading, UAH 1 billion was allocated separately for the needs of agrarians for land reclamation.

For the launch of the work of the Fund for Partial Guarantee of Loans to Agriculture - UAH 200 million.

The agrarian committee generally proposes to change the logic of state support (subsidies) in 2022 to finance value-added programs. Ideally, introduce a special regime to create added value in the agro-industrial complex.

“The special mode of added value in the agro-industrial complex is a reduction in the VAT rate to 7% from 20% at all stages of production - from agricultural producers to the counter. At each stage of the production of agricultural products, the VAT rate is 7%. This allows the manufacturer to accumulate additional financial resources and direct them to the development of the economy. The consumer is guaranteed a reduction in final prices. The state provides an increase in income from increasing the volume of production of agricultural products with added value and allows for import substitution for products. Everyone will benefit from this. The special value-added regime is a step towards development in the general agricultural sector, which will stimulate processing, ”suggests Ivan Tchaikovsky.

АgroРolit.com