Rada cancels subsidies to farmers, allocating UAH 4 bln for livestock breeding support
The Verkhovna Rada of Ukraine in the national budget for 2018, adopted on December 7, abolished the system of subsidies to agricultural producers, which operated in 2017.
It is planned to allocate UAH 4 billion for livestock breeding support, UAH 945 million for the program of 20% compensation to farmers for the cost of Ukrainian agricultural machinery, and UAH 1 billion for support to farms as state aid.
Some UAH 300 million is foreseen for the program of support to the development of hop growing, new orchards, vineyards, berries and care for them. Some UAH 66 million will be allocated for the program of cheapening credits, UAH 52 million for the costs of the Agrarian Fund for storage, transportation, processing and export of intervention fund products.
"We consider the abolition of VAT quasi-accumulation (subsidies) for agricultural producers absolutely unacceptable. The government undertook the obligations that after the abolition of the special VAT regime there will be state aid in the form of quasi-accumulation for livestock keepers, but we were deceived," Deputy Chairman of the All-Ukrainian Agrarian Council Mykhailo Sokolov said during a press conference at Interfax-Ukraine.
According to him, at first they adopted such an order of distribution of subsidies, according to which farmers received much less than they should, then in the draft budget they halved financing for this type of aid, and as a result they simply completely cancelled this article.