“The government keeps ignoring the needs of ordinary farmers who feed millions of Ukrainians” – Ostrikova

Tetiana Ostrikova, Samopomich MP, believes that for the sake of a fair distribution of the agrarian subsidy from the state budget it is necessary to introduce changes to the draft state budget for the next year and to the government resolution #83.

First of all, the draft budget for 2018 provides for a reduction of the agricultural subsidy by 2 billion hryvnias. It is noteworthy that the funds that were withdrawn from this area were transferred into another subsidy with the euphonious name – “in support of animal husbandry” – and with a completely different content. So, the government suggests allocating 2.3 billion hryvnias to the compensation for the construction of livestock sector facilities.

However, this program carries significant corruption risks, because such a practice already existed under the previous government, and back then such “subsidies” were received by companies close to the authorities. Thus, in 2018 it might turn out that these subsidies provided for by the government will end up in the possession of the enterprises affiliated with large agricultural holdings, rather than in the possession of ordinary farmers.

This is unfair in relation to agricultural producers. Consequently, Samopomich deputies have submitted a number of amendments, including the removal of 2 billion foreseen for the compensation of capital construction, and the preservation of the amount of the subsidy for the return of VAT paid to all agrarians at the level not less than in 2017 (4 billion hryvnias instead of 2 billion proposed by the government).

Secondly, it is necessary to amend the Cabinet’s resolution #83 on the order of the subsidy distribution, which says: “The monthly amount of the budget subsidy to the producers who deal with poultry farming cannot exceed 50% of the allocated budget subsidy in the current month.”

It is because of the operation of this document that a large part of the subsidies in 2017 was received by two large agricultural holdings. Accordingly, the government’s decision is necessary to reduce this percentage.

In addition, it is necessary to change the base for accrual of subsidies, because in many companies the tax liabilities from the sale of crop products that are not subsidized “ate” the amount of subsidy to which they would have the right when selling livestock products.

The corresponding changes to the government’s resolution were written by the agrarian associations back in March, but the Cabinet keeps ignoring them. Such a policy of ignoring let those large agricultural holdings that are engaged in poultry farming get more than 1 billion funds.

Meanwhile, millions of small and medium-sized farmers are waiting for clear and understandable actions from the state that would help them work in our country and develop it economically.

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