Farmers will be able to obtain loans at five percent per annum

UFA, 2 November 2016. /Bashinform News Agency, Galina Bakhshieva/. In 2017, farmers will be able to obtain loans at five percent per annum. The Minister of Agriculture RB Nikolay Kovalenko told about preparing measures of agricultural producers’ state support during a business-marathon organized by the "Komsomolskaya Pravda" newspaper and Rosselkhozbank. As reported in the national media, the Prime Minister of the Government of the Russian Federation Dmitry Medvedev said that the next year the amount of state support for agriculture would not be reduced, and in 2016 the budget allocated 214 billion rubles for these purposes.

As Nikolai Kovalenko explained that farmers were forced to use their working capital to pay for the subsidized part of the rate, and then get a refund from the state. Therefore, the Ministry of Agriculture of Russia has proposed to change this scheme and direct subsidies directly to banks-agents to recover the lost revenue.

According to the Ministry of Agriculture RB, 98 percent of agricultural lending is accounted for the Rosselkhozbank. As of October 1, 2246 contracts were concluded with Bashkir farmers (31 percent more than last year) amounting to more than 7 billion rubles. Of these, 84 percent were loans for seasonal field work.