Profitability of Russia's agricultural sector is falling

Profitability of agricultural production in the formal sector by the end of 2022 will drop to the level of two years ago. This was stated by Deputy Minister of Agriculture Elena Fastova at the conference "Agrotrends of Russia 2022-2023", reports World of NAN, referring to Prime.

"As for the profit and profitability that we are seeing, it will be lower than the previous year - at the level of 2020. We all understand - there are objective reasons for this, and, of course, our support is to minimize the problems that arise in agriculture," - said Fastova.

According to the materials of the Ministry, presented at the conference, by the end of 2022 the profitability of agricultural organizations, including subsidies is expected to be 21% and without subsidies - 17%. Approximately 2020 showed the same level - 21% and 16.3% respectively. Meanwhile, in 2021, the profitability of agricultural production reached 25.6% (including subsidies) and 21.2% - without them.

Meanwhile, Fastova confirmed the expectations of agricultural production growth of 3.5% for the year, and reported a positive forecast for food production - though not as noticeable as in agriculture: according to the presentation, by 0.2% against 4.2% in 2021 and 3.1% in 2020.

The deputy minister also reminded that 445.8 billion rubles from the federal budget (467.5 billion in 2022) is tentatively scheduled for provision of resources for state programs relating to agriculture in 2023. In particular, in 2023 expenditures on the state program of development of rural areas (up to 59.9 billion rubles from 52.5 billion) and development of new lands - up to 38.4 billion rubles from 25.2 billion in the 2022 budget estimates will be greatly increased.

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