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Published: December 15th, 2016

Farmers definitely felt the positive effects of subsidy programs of agricultural machinery producers. In 2016, the largest plants showed an increase in production and sales of equipment for various purposes, domestic demand for cars remains high.

Park of agricultural machinery in Russia is outdated. Up to 70 percent of the machines are physically worn out, 90 - morally. According to Russian Industry and Trade Ministry, 85 percent of tractors, combine harvesters 58 percent and 41 percent of forage harvesters in the country are over 10 years.

The share of Russian agricultural machinery in total has grown from 24 to 54 per cent today.

RF Government Resolution dated December 27, 2012 N 1432 "On approval of rules for granting subsidies to producers of agricultural machinery" allows farmers to buy equipment at a discount of 25-30 percent. Government support measures to stimulate the growth of agricultural production in Russia in the 70 enterprises in 37 regions. Production of agricultural machinery for 7 months of 2016 increased by 58.6 percent. Sales - more than doubled, to 63.8 billion rubles. In 2016, agricultural enterprises have acquired thanks to state support of 12 thousand units. But this is still not enough.

"Prior to the implementation of Resolution №1432 St. Petersburg Tractor Plant produced no more than 300-400 farm tractors per year. In 2015, thanks to the subsidized plant produced 1335 units. November 16 the company the first time in post-Soviet history produced two thousandth tractor from the beginning of the calendar year, - says the deputy director of the Association "Rosagromash" Denis Maksimkin -. For the first time in the modern history of the Russian company "Rostselmash" created a new production of modern power tractors, transferred from Canada to Rostov-on-Don Running tractor production is planned for the IV quarter of 2016 ".

The share of Russian agricultural machinery today has grown from 24 to 54 per cent, while according to experts Russian producers can afford to reduce the share of imported vehicles to 10 percent.

"Agricultural market in Russia in recent years has been very dependent on imports. But in 2013, there has been a steady increase in the share of machinery of domestic production. In the current market conditions it is possible to predict a further increase in the share of domestic cars. Today, the majority of agricultural enterprises is committed not only to go to the import of agricultural machinery to the domestic but also to update the fleet modernized samples Making the choice in favor of modern Russian brands, farmers not only support domestic producers, but also reduce the cost of service, driver training, and technical staff. ", - said the deputy executive director of government relations for the company "Agromashholding" Tamerlan Kazakov.

Experts worry that next year the rate of growth of our sales of farming are not as optimistic. According to the deputy director of "Rosagromash", it is important to save funding for the program until 2020 at the current level. This means that every year it will require 15 billion rubles. And in budget 2017 stipulates only 1,961 billion. Regions are reporting an increase in purchases of agricultural equipment and rely on further funding for the program. "Today, domestic manufacturers talks with caution about the future, because there is still uncertainty on the financing in 2017 a subsidy program according to the decision N 1432", - said the president of the association "Rosagromash" Konstantin Babkin.

Source: Russian Newspaper