The Ukrainian Agrarian Associations have expressed dissatisfaction with the funding of state programs to support agriculture in the draft national budget for 2014.
“We observe the reduction in financing in almost all directions,” President of the Ukrainian Agrarian Confederation Leonid Kozachenko said at a press conference at Interfax-Ukraine.
According to the president of the Ukrainian Agribusiness Club, Alex Lissitsa, practically zero financing of state programs for agricultural development will lead to the fact that we will not be able to talk about record high harvest in 2014. He also said that national farmers still do not understand what mechanism will be used for VAT refunds in operations with grain. If VAT non-refund is extended until 2016, it will cause the annual underfunding of the industry in the amount of UAH 8-9 billion.
“If Ukraine in 2014 produces 40 million tonnes of grain – it will be a good figure,” said Lissitsa.
The chairman of the board of directors of the Union of Poultry Breeders of Ukraine, Oleksandr Bakumenko, noted that the budget contains no direct financial aid for agriculture. He expressed outrage at the fact that only UAH 200 million is foreseen for repayment of interest on loans issued by commercial banks. The expert specified that interest rates in Ukraine are the highest in Europe – 20-25%.
