The Cabinet of Ministers at a meeting on 13 September approved the Concept of development of farms and agricultural co-operation in 2018-2020, the press service of the government.
“Implementing systemic support of farming will increase the production of gross agricultural output doubled over the three years to 12% and to develop processing of raw materials within the country. This will ensure the growth of foreign exchange earnings from agricultural exports and increase the margins for economic entities,” – said the first Deputy Minister of agrarian policy and food of Ukraine Maxim Martyniuk.
He stressed that the support program backed by substantial financial resources. “Next year the government proposes to provide in the state budget a record amount to support farmers – 1 billion UAH. Additionally, there continue to be other areas of support, in particular, concessional loans, partial compensation of cost of agricultural machinery and equipment, cheaper loans,” – said the Deputy Minister.
The program provides financial instruments to support livestock production, horticulture, viticulture and processing of agricultural products, reduction of agricultural loans and crop insurance and support beginning farmers.
It is also planned the holding of a special land auctions for the right to lease land for horticulture, viticulture, hop cultivation and the cultivation of organic products.
The government expects that the implementation of the Concept will increase the share of farms in gross production of agriculture to 12%, the growth in the number of jobs in five times – from 100 thousand to 0.5 million, the retooling of farmers, an increase of 10% of the area under organic crops.
Just in 2017 to support the agricultural sector the government has allocated 5.4 billion UAH, which is 20 times more than the previous year, and around 1% of the gross production of agricultural products.
Previously the former head of the Ministry of agriculture Taras Kutovoy predicted that next year the amount of state support of the entire industry will amount to more than UAH 6 billion.