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Farm credit[ edit ] While agricultural policy escorhs Russia had been poorly structured and largely unsuccessful, some basic trends have helped to escorrs forces for change. The first is that state tax revenues have been falling, and hence the spending capacity for agricultural policy has been falling. There has been improvement in the agricultural credit escorta in Russia over the Indian escorts in belgorod five years — for some farms, at least — due largely to subsidies from the Indian escorts in belgorod excorts. The national project for agriculture has given impetus to the growth of small farms. During36 billion rubles in credit were given to more thanrecipients as compared to 3.

Traditional farms and personal plots play an important role in the sector, providing more than 87 percent escots all production. The State offers in-kind credits, whereby seedfertilizerand other inputs are provided in exchange for grain harvested at the end of the season, though escoorts use of in-kind credit is reportedly decreasing. The government also provides subsidies for the purchase of plant-protection chemicals and fertilizers, and subsidizes two-thirds of the interest rate on loans Indian escorts in belgorod commercial banks, which provide the majority of farm credit. Banks recognize the inherent risk in agricultural financing but also see agriculture as less risky than other industries and are generally willing to lend money to solvent, well-managed farms.

As a result, many farms are forced to rely on outside investors to guarantee loans. These investors, frequently referred to as holding companies, typically are large, cash-rich, traditionally non-agricultural companies that became involved in agriculture over the past five years. Some viewed crop production as a potentially highly profitable venture, and others were working to guarantee raw materials for vertically integrated food-processing operations. Many holding companies, particularly those who were attracted to agriculture by the high grain prices duringhave lost interest in crop production following two years of low prices and are bailing out.

Although some holding companies remain comfortable with the variable profitability of agriculture and will continue to work with farms, several prominent commodity analysts feel that the overall involvement of big companies in agriculture is declining. This means that current prospects for significant, long-term investment in agriculture — particularly the purchase of agricultural machinery and grain-storage facilities — are somewhat dim. Land reform has been evolving in Russia since the basic right to own farmland was established inbut "landowners" are still unable to use land as collateral in securing a loan.

The situation, however, is not one that can be resolved quickly or easily through legislation alone. There is no mechanism currently in place to enable banks to evaluate the value of land based on its productivity before issuing loans, and banks likely would be reluctant to use land as collateral regardless of legislation. Furthermore, there are restrictions against non-agricultural use of land that is currently used for agriculture: The use of land as collateral appears to be a remote prospect. Most investments occurred in corporate farming, where about State investment program[ edit ] In Decemberthe State Duma passed a law requiring a state program for investment in agriculture to be passed every five years.

This is the first of those programs. Between andagriculture received Governance and economy of Russian agriculture[ edit ] As non-agricultural sectors grew more rapidly after the collapse of the Soviet Unionthe share of agriculture in total GDP in Russia decreased from The agricultural sector accounted for 6.




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