Support for farmers in Russia

Since 01.01.2022, the Rules for the Provision and Distribution of Subsidies from the Federal Budget to the Budgets of the Constituent Entities of the Russian Federation for the Creation of a system of support for farmers and the Development of Rural Cooperation have been in force in Russia in a new edition (as Appendix No. 6 to the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets, approved by Decree of the Government of the Russian Federation No. 717 of 14.07.2012).

The Rules establish the goals, conditions and procedure for the provision and distribution of subsidies from the federal budget to the budgets of the constituent entities of the Russian Federation for the creation of a system of support for farmers and the development of rural cooperation in order to co-finance the expenditure obligations of the constituent entities of the Russian Federation arising from the implementation of measures aimed at creating new small businesses in the agro-industrial complex, development of agricultural cooperation and ensuring the activities of competence centers in the field of agricultural cooperation and support for farmers by providing funds from the budgets of the constituent entities of the Russian Federation.

Subsidies are provided within the limits of budgetary obligations communicated to the Ministry of Agriculture of the Russian Federation as a recipient of federal budget funds for the provision of subsidies.

For recipients of funds using the right to exemption from the performance of taxpayer duties related to the calculation and payment of value-added tax, financial support (reimbursement) of part of their costs is based on the amount of expenses for the purchase of goods (works, services), including the amount of value-added tax.

The «Agrostartap» grant is provided to the grantee for the implementation of the project of creation and (or) development of the economy:

  1. for breeding cattle of meat or dairy directions of productivity - in an amount not exceeding 5 million rubles, but not more than 90 percent of the costs;
  2. for the breeding of cattle of meat or dairy production directions, if it is envisaged to use part of the «Agrostartap» grant for the purpose of forming an indivisible fund of an agricultural consumer cooperative, of which the grantee is a member, in an amount not exceeding 6 million rubles, but not more than 90 percent of the costs;
  3. in other areas of the project of creation and (or) development of the economy - in an amount not exceeding 3 million rubles, but not more than 90 percent of the costs;
  4. in other areas of the project for the creation and (or) development of the economy, if it is planned to use part of the Agrostartap grant for the purpose of forming an indivisible fund of an agricultural consumer cooperative, of which the grantee is a member, in an amount not exceeding 4 million rubles, but not more than 90 percent of the costs.

Funds are provided to agricultural consumer cooperatives to reimburse part of the costs incurred in the current financial year:

1) related to the acquisition of property for the purpose of subsequent transfer (sale) of the acquired property to the ownership of members (except associate members) of an agricultural consumer cooperative - in an amount not exceeding 50 percent of the costs, but not more than 3 million rubles per agricultural consumer cooperative. The list of such property is determined by the Ministry of Agriculture of the Russian Federation. The value of such property transferred (sold) to the ownership of one member of an agricultural consumer cooperative may not exceed 30 percent of the total value of this property;

2) related to the acquisition of cattle for the purpose of replacing cattle sick or infected with leukemia belonging to members (other than associate members) of the said agricultural consumer cooperative on the right of ownership - in an amount not exceeding 50 percent of the costs, but not more than 10 million rubles per agricultural consumer cooperative. The value of cattle transferred (sold) to the ownership of one member of an agricultural consumer cooperative may not exceed 30 percent of the total value of the purchased livestock. The age of the purchased cattle should not exceed 2 years. The procedure for replacing cattle sick or infected with leukemia belonging to members (except associate members) of an agricultural consumer cooperative is established by the authorized body;

3) related to the acquisition and subsequent contribution to the indivisible fund of agricultural machinery, specialized vehicles, equipment for the organization of storage, processing, packaging, labeling, transportation and sale of agricultural products and mobile retail facilities for the provision of services to members of an agricultural consumer cooperative - in an amount not exceeding 50 percent of the costs, but not more than 10 million rubles per agricultural consumer cooperative. The list of such equipment, transport, equipment and facilities is determined by a regulatory legal act of the supreme executive body of state power of a subject of the Russian Federation or an authorized body. The service life of such machinery, transport, equipment and facilities on the day of receipt of funds should not exceed 3 years from the year of their production. At the same time, the source of reimbursement of the costs of an agricultural consumer cooperative provided for in this paragraph may not be the grant "Agrostartap" received by the grantee;

4) associated with the purchase of agricultural products from members of agricultural consumer cooperative (excluding associate members), in the amount not exceeding:

  • 10 percent of the cost, if the proceeds from the sale of products purchased from members of agricultural consumer cooperative, at the end of accounting period (quarter) of the current fiscal year, which provides reimbursement of expenses, ranging from 100 thousand rubles to 5,000 rubles inclusive;
  • 12 percent of costs, - if the proceeds from the sale of products purchased from members of an agricultural consumer cooperative, according to the results of the accounting period (quarter) of the current financial year, for which reimbursement of part of the costs is provided, is from 5,001 thousand rubles to 25,000 thousand rubles inclusive;
  • 15 percent of costs, - if the proceeds from the sale of products purchased from members of an agricultural consumer cooperative, according to the results of the accounting period (quarter) of the current financial year, for which reimbursement of part of the costs is provided, is more than 25,000 thousand rubles.