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Ministry of Agrarian Policy expects Cabinet will approve Agrarian-Industrial Complex budgetary support procedure until Mar

20.02.2007 09:00 "Agro Perspectiva" (Kyiv) — Speaking on Ukrainian

Association of Farmers and Private Landowners Feb 16 Kyiv XVIIth Congress,

Minister of Agrarian Policy Yuriy Melnyk declared Ministry hoped Cabinet would approve until early Mar main procedures of State budget financial means (allocated for Agrarian-Industrial Complex 2007 support) usage.

«I think still more 5 important procedures of 2007 State budget financial means usage will be adopted on Government Feb 21 meeting,» stated Minister.

Melnyk admitted Ministry has, in part., prepared for Government examination procedure of partial compensation by State of commercial banks credits (attracted by agrarians) interest rates.

Melnyk said he was convinced preferential credits should be accessible not only for agricultural producers, yet as well for processing/food industry companies.

Besides, he said he insisted current restrictions of State credits cheapening as depending on agricultural companies size should be removed; he expressed hope these restrictions would be eliminated still within this year.

Ukrainian Agricultural Minister also said he expected in short run Government would adopt agricultural crops per ha sowing subsidies payments procedure. He emphasized subsidies amount should be paid to agrarians as one payment not to be divided into a few separate ones.

As well, Melnyk declared Ministry of Agrarian Policy had prepared procedure of country stockbreeding industry financial support, which is to total UAH1.035 milliard this year. Melnyk said as soon as this procedure is approved/comes into effect State would compensate to agrarians earlier indebtedness on subsidies for cattle, pigs and poultry sold for processing within last year.

He said Ministry of Agrarian Policy also expected Government would approve procedure of State compensation of  30% domestically made agricultural equipment (purchased by agrarians) cost; as to him, Government should as well back up farm economies State support procedure as well as procedure of insurance premiums State partial compensation.

«I am sure new rules of State financial means usage for Agrarian-Industrial Complex support will satisfy all agricultural producers, — including vast army of farmers, — interests,» stressed Agricultural Minister.

Melnyk reminded a few days ago Government had already approved procedure of agrarians mineral fertilizers compensation as well as procedure of providing agrarians with agricultural equipment on leasing conditions. Minister admitted newly adopted leasing procedure stipulated first leasing payment shortening to 15% of agricultural equipment cost (down against current 20%) as well as lessor bonus lowering from current 10% down to 7%.

< Jan eggs prices down 0.3-5%, to UAH3,2-4,03 per ten in 17 regions

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20.02.2007

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