The list of farming equipment, whose manufacturers receive subsidies, is supplemented with special-purpose tractors, agricultural hay-processing equipment, livestock-milking equipment, and milk transport and storage equipment.
This document was drafted by the Ministry of Agriculture.
Government Resolution No 1432 of 27 December 2012 On Approving Regulations for the Allocation of Subsidies to Farming Equipment Manufacturers, hereinafter referred to as Regulations, stipulates the allocation of federal budget subsidies to farming equipment manufacturers. These subsidies totaling 15% of farming equipment costs make it possible to reimburse farming equipment manufacture and selling expenses.
The signed resolution amends the Regulations aiming to supplement the list of farming equipment, whose manufacturers are eligible for subsidies.
The above list shall be supplemented with the following types of equipment and machinery:
· Special-purpose tractors (for the viniculture, gardening, beet-growing, cotton-growing, amelioration and seed-growing sectors);
· Agricultural post-harvest hay-processing equipment (grain-cleaning, pre-cleaners, bur extractors and calibration systems);
· Livestock-milking equipment, as well as milk transport and storage equipment.
Due to the expansion of the list of farming equipment, the Regulations shall also be supplemented with technological operations that are part of the farming equipment manufacturing process in the Russian Federation.
Moreover, the Resolution specifies the procedure for calculating farming equipment prices pending the allocation of subsidies. For instance, an amendment to the Regulations provides for a deduction from farming equipment prices for the purpose of calculating VAT subsidies.
In 2013, the Ministry of Agriculture signed 23 agreements with farming equipment manufacturers and sold 765 units of farming equipment, including 37 tractors, and 535 grain harvesters and fodder harvesters, to farmers in line with these agreements. In all, farming equipment manufacturers received 430 million roubles in subsidies.
The Federal Law On the 2014 Federal Budget and the 2015-2016 Planning Period stipulates subsidies worth 1.9 billion roubles for farming equipment manufacturers throughout 2014.
This Resolution aims to ensure more affordable purchases of Russian-made farming equipment by agricultural producers and to expand farming equipment production.
