Syngenta introduced 5th Russian Agricultural Producers Development Index

Syngenta introduced the 5th Index of Russian Agricultural Producers Development, developed in partnership with the Institute for Agricultural Market Studies (IKAR) and analysts from Ayfors and VCIOM (All-Russian Public Opinion Research Center). The study involved agro-industrial and agricultural organizations and enterprises of Russia, including those from the Volga Federal District, operating in the field of crop production.

This year, the growth of conservative attitudes regarding long-term investments is recorded as determining factors, but in the medium term, the expectations of farmers remain positive. The COVID-19 pandemic causes separate concerns of agricultural producers. About 57% of respondents believe that the pandemic will adversely affect the industry as a whole. Only 2% of respondents reported a positive impact.

In general, the results of the 5th Index showed that the agricultural sector development was in a stabilization phase. In particular, respondents rated the 2019/2020 season at 3.61 out of 5 points, while the 2018/2019 season had a rating of 3.67. The most successful period for the entire duration of the study remains the year of 2016. In the 2019/20 season, 16% of farms managed to expand the sown area; since 2017, this figure has decreased by 11 percentage points. The main share of interviewed agricultural firms left the sown area at the same level.

In 2018, 67% of households hoped to increase their income; this year, 63% turned out to be such. At the same time, it is worth noting that the percentage of respondents who expect significant revenue growth has decreased by almost two times (18% in 2020 and 35% in 2018), while those who expect to maintain income at the same level remained almost unchanged (28% in 2020 compared to 23% in 2018). In 2020, agro-industrial enterprises plan to increase profitability primarily due to the high yield and low cost of the product (71%), improving the quality of products sold (42%) and high prices for crop production (37%).

The loan attractiveness to farmers is gradually declining. If, in 2018, 76% of respondents said that they used loans, in 2019, this figure was 73%, and in 2020 - 71%. The share of respondents who increased investment in fixed assets this season is 66%, which is nine percentage points higher than in 2018. The percentage of those who plan to increase investment in working capital has grown even more - 64% in 2020 compared with 44% in 2018. As for the introduction of new methods and technologies, in the current season, agricultural companies, first of all, plan to introduce new approaches to seed production - 56%, crop protection - 55% and fertilizers - 50%.

"Despite the uncertainty that has been recently observed in the industry, in our practice, we have recorded a constant high interest in new technological solutions that allow agricultural producers to guarantee yields and increase the crop production efficiency in general. The cost of seeds and crop protection products is certainly an important factor, but efficiency and increased productivity ultimately become decisive for farmers. Russian farmers have learned how to estimate risks and have duly appreciated the benefits of applying comprehensive measures to increase productivity and product quality," Jonathan Brown, the head of Syngenta's Russian office, said commenting on the results of the study.