Subsidies: counter obligations are unfeasible for farmers

The Ministry of Agriculture introduces counter obligations for the recipients of subsidies in crop production. The World of NAN editorial board asked Farid Abitaev, Director of OHMK LLP, to comment on this issue.

The counter obligations imply that agricultural producers who receive subsidies to increase yield and quality are now obliged to increase and maintain production in monetary value.

"If we have 100% irrigation, this clause has the right to life. But if we depend on weather factors, this clause will work against business. We have three consecutive years of drought," Farid Abitayev noted.

Indeed, climate change is being trumpeted from every crevice and the situation will only get worse. Perhaps the system does anticipate extreme weather conditions. What about price pressure in the market? We live next door to a giant in the form of Russia, and farmers sometimes suffer from dumping. The market situation can be unstable.

"Why should business have to prove anything? No farmer will work against his business and his yield. No one wants to live worse. There is no choice for us but to sow and harvest. What is the ultimate goal of these commitments?" asks Abitayev.

And really - what is the goal of the state? Perhaps it is to spend the budget efficiently and not lose money on unqualified farmers? Or how? The editors of World of NAN will make an enquiry to the Ministry of Agriculture and try to find an explanation.

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