The state is ready to add nine roubles to every farmer’s one
The Ministry of Agriculture and Commerce of the Arkhangelsk Region invites operating and beginning farmers, as well as the residents of the Arkhangelsk Region owning smallholdings and wishing to develop their production, to participate in a competition for unconditional state grants called AgroStartUp.
The funds received from AgroStartUp (the maximum amount could be from 3 to 4 million roubles) can be spent on construction and renovation of agricultural infrastructure, acquisition of livestock (except pigs), fish seeds, agricultural machinery, transport and equipment, planting material for perennial plants, repayment of principal loan debt, acquisition of lands, delivery and installation of agricultural equipment and machinery. The complete list is defined in Appendix 1 to the Order of the Ministry of Agriculture of the Russian Federation No. 238 of 6 May 2019.
"Any citizen of the Russian Federation can obtain a grant from AgroStartUp, provided that he or she resides in the rural areas and intends to undertake agricultural activity. The applicant should not be a recipient of any other grant from the Ministry of Agriculture of the Russian Federation, such as the Novice Farmer or the Family Livestock Farm", says Ms Irina Bazhanova, the Minister of Agriculture and Commerce of the Arkhangelsk Region
To enter the competition, which will be announced at the end of March, the applicant needs to submit a draft business plan and other relevant documents to the Ministry of Agriculture and Commerce of the Arkhangelsk Region. The staff of the Competence Centre for Agriculture of the Agency for Regional Development are ready to help to prepare the application.
All the business plans will be evaluated by the jury, the grant will be funded on the basis of the protocol signed by its members. The grant shall be provided on the co-financing terms.
"First of all the farmer needs to decide how much is required to create and develop the business. The estate is ready to provide up 90% of this amount. The rest 10% to be invested by the grantee", adds Ms Bazhanova
A significant difference of the AgroStartUp grant from similar measures of state support is that it could be made available to the owners of smallholdings. However, there is one condition. When an applicant is announced as a grantee, he or she shall register the peasant household in the Russian Federal Tax Service within 15 days.
"It is also possible to enter the competition without registration. It is necessary only after the participant knows that he or she is a winner", explains the Minister
The maximum amount of the grant depends on whether the applicant is a member of an agricultural consumer cooperative or not. In the first case, one can receive from the state up to three million roubles, in the second case – up to four million.
For those who are members of agricultural cooperatives there is a special provision: no less than 25% and no more than 50% of the total amount of the grant shall be directed to establish an indivisible fund of the agricultural consumer cooperative of which the grantee is a member.
Use of the term indivisible fund refers to the part of the property, which should not be divided into the shares of the cooperative’s members (associate members) during the period of the cooperative, or disbursed at the end of their membership, but used for the ongoing activities in accordance with the designated purpose.
Currently, there are two main approaches to the development of the indivisible fund.
Thus, the indivisible fund includes the reserve fund and other internal funds of the cooperative with a target value (with the exception of mutual funds), as well as certain objects of the property of the association in accordance with the decision of its general meeting.
The listing of property acquired by the cooperative using AgroStartUp grant, contributed by the grantee to the indivisible fund, is defined in Appendix 2 to the Order of the Ministry of Agriculture of the Russian Federation No. 238 of 6 May 2019. These may be equipment for harvesting, storage, processing, slaughtering, loading/unloading, laboratory outfitting, agricultural machinery and so on. Herewith the acquired property should not be alienated and the population of livestock should be continued during five years.
The grant’s financial support should be used within 18 months following the date of receipt; herewith the grantee is committed to fulfilling the obligation to create jobs. Their number depends on the amount of the provided payment:
- upon receipt of grant funds up to two million roubles, the beneficiary is committed to fulfilling the obligation to create at least one job;
- upon receipt of grant funds over two million roubles – at least two jobs.
The jobs must be registered in the Pension Fund and the Social Security Fund of the Russian Federation. Besides, the grantee must meet the performance indicators to be written into the grant agreement.
Press Office of the Governor and the Government of the Arkhangelsk Region