As specified in the press service of the Deputy Prime Minister of Russia, in order to receive them, the owners of farms will need to have the status of self-employed and apply a special tax regime.
The Russian government plans to expand the experiment to support personal subsidiary plots (PSP). The list of borrowers who are granted preferential loans for the production of agricultural products will include citizens leading household plots. This was reported in the press service of the Deputy Prime Minister of Russia Victoria Abramchenko.
“Concessional lending will expand the experiment to support private farms, which received access to subsidies this year. All these measures together will serve as an incentive for the accelerated growth of the agro-industrial complex,” Abramchenko said in the message.
As noted in the message, it is proposed to make appropriate changes to the rules that regulate the provision of subsidies from the federal budget to credit organizations to compensate for lost income from preferential lending to agricultural producers. In order to receive preferential short-term or investment loans, owners of personal subsidiary farms will need to have the status of self-employed and apply the special tax regime “Tax on professional income”.
“Our task is to grow medium-sized private farms from small private farms. Already today, according to the Russian Ministry of Agriculture, private household plots for certain types of vegetables provide up to 50% of production in the country. and, therefore, to increase the scale of private household plots themselves,” Abramchenko believes.
In her opinion, involvement in the mechanism of concessional lending and embedding in production chains will encourage private farms to be more transparent in business and comply with all product quality requirements. The press service of Abramchenko recalled that since 2022, changes have been made to the state program for the development of agriculture and the regulation of markets for agricultural products, raw materials and food. They opened access to state support to owners of personal subsidiary plots registered as self-employed. From 2022, they have the right to count on subsidies provided by the government to the industry. Thus, they compensate for the costs of expanding the production of open-field vegetables, potatoes, milk, and the development of specialized beef cattle breeding, sheep and goat breeding.
