The economy of the Russian Federation has recently experienced tremendous international pressure, which is expressed in various kinds of sanctions. In this regard, the government, among other things, decided to develop a program aimed at developing the agricultural sector and raising the level of peasant (agricultural) farming. The state program for the development of agriculture provides, among other measures, the issuance of grants to farmers.
State program for agricultural development
The state program, developed in connection with the sanctions rhetoric, sets the main goals:
- ensuring food security and independence of the Russian Federation;
- increasing the attractiveness of the industry (including the investment attractiveness of agriculture);
- optimization of the structure of the agro-industrial complex;
- creation of the most favorable conditions for doing business;
- increasing the competitiveness of Russian agricultural products in both foreign and domestic markets;
- sustainable rural development.
Types of grants for farm development
State aid to novice farmers allows you to build a farm that is economically successful. Measures of support and development of peasant farms include the following types of assistance:
- Grants for peasant farms (peasant farming). Finances are allocated for the purchase of land, the construction of necessary facilities, and communications at enterprises.
- Subsidies for loans, the purpose of which can only be the development and modernization of their own economy.
- Subsidies for the purchase of agricultural machinery.
- Compensation of finances used for the construction of family facilities.
Basic requirements for grant applicants
How to get a grant for the development of farming? Firstly, the candidate must fully meet the requirements of the state program, and secondly, it is required to collect the necessary documents, develop a business plan and provide all the papers to the project coordinator at the local level. After that, it remains only to wait for the decision of the commission.
The conditions for obtaining a grant for agricultural development include the following points:
- The farmer has a diploma of higher education (preferably agricultural or practical experience in farming, lasting at least three years).
- The presence of their own subsidiary farm, which is maintained by the candidate over the past three years, at least. A grant for the development of agriculture is available only to experienced farmers.
- It is desirable that the applicant for a grant should have a letter of recommendation from the authorities, be a cooperative and the like.
- The farmer should not have previously received grants or other forms of state support for agriculture.
- The candidate should not be a private entrepreneur, founder or member of any commercial organization for the past three years.
- Agriculture is the only place for a farmer to work.
- A program participant must have at his disposal at least 10% of the planned grant amount.
- At least 24 months should pass from the date of registration of peasant farms, the number for the last year should not exceed 15 employees, and revenue excluding VAT - less than 60 million rubles.
List of papers for participation in the state program
Obtaining a grant for the development of agriculture involves the collection and submission to the appropriate authorities of a package of securities, such as:
- a completed application for participation in the state program;
- identity document and its copy;
- diploma of higher (secondary, specialized secondary) education and its copy;
- employment record and its copy (to confirm the experience in agriculture);
- business plan;
- estimate;
- application form for a grant;
- recommendations and other applications (if any);
- certificate of availability on the applicant’s bank account of an amount equal to at least 10% of the grant;
- consent to the processing of personal data of the applicant;
- certificate confirming that the applicant is a small business entity (entrepreneur).
The list of documents may vary depending on the requirements of the committees in various constituent entities of the Russian Federation, so the data should be checked with the local coordinator of the state program.
Grant business project structure
The commission studies the business plan carefully enough, so it is worth approaching the drafting of the project in all seriousness. The document should include such pages and sections:
- Title page. It is necessary to indicate the name of the agricultural enterprise, address, phone number and other contact details of the applicant. A little lower should be written the planned term of the project, the size of investments, payback. All information should be presented very briefly.
- Description of the agricultural activities of the applicant for material assistance. In this section, it is necessary to characterize the business in detail, describe the development paths and indicate the role that this FHK plays in social development. It is also worth posting information on the number of animals, the area of soil for sowing work, the amount of personal funds that the applicant is willing to invest in the project, the necessary grant amount, etc.
- Detailed description of the chosen activity. Attention should be paid to the analysis of the industry's development over the past five years, and also to determine what social and economic significance it has for the region.
- Detailed production plan. In the section you need to describe all the actions aimed at the development of agricultural production, the financing of which is planned from the grant.
- The marketing part of the business plan. It should describe the potential consumer of the product, determine pricing policy, market, evaluate the profitability of the economy.
- Description of the organization of the economy. In this part of the business project, it is necessary to mention the creation of jobs on the farm, indicate their number, determine the farm management system, employees' wages, and list the rights and obligations of employees.
- The financial part of the project. On the financial side, the commission will evaluate the capabilities of the applicant and the viability of the plans. It is necessary to provide an optimistic and realistic forecast of expenses and income of the enterprise.
- Possible risks and protective developments. This paragraph should identify possible risks, as well as list the measures that will be applied in protection from adverse external factors and other risks.
- Additions. To the business plan you need to attach materials related to the design of the activities of peasant farms. They may be photographs, diagrams, drawings, recommendations, a license to a legal entity and other papers.
Consistency of Farm Development Assistance
How to get a grant for agricultural development? In general terms, the procedure is as follows:
- Preparation of necessary documents.
- Submission of a package of papers to the local coordinator of the state program for the development of agriculture.
- Obtaining a decision and, if it was positive, material assistance.Instead of cash, the farmer can be provided, for example, with a land plot or equipment, if the finances received were planned to be spent specifically on their acquisition.
Purpose of using state aid
Spending state aid on one’s own needs will not work, as the expenses have to be reported. For a grant for the development of a farm, the recipient of the funds may purchase:
- farm animals;
- seeds and planting material for perennials;
- fertilizers and chemicals;
- equipment and agricultural machinery;
- buildings, warehouses, premises, structures and land;
- engineering networks that are necessary for agricultural production.
Other opportunities to receive financial support
In addition to the grant, novice farmers can receive one-time state assistance. The decision to issue financial resources is made by the same commission, and the funds can be spent on the purchase of furniture, appliances, the Internet and other communications, repair or purchase of housing, and so on.
Receiving material assistance from private investors
A grant for agricultural development to a beginner farmer can be issued not by the state, but by a private investment fund. Such organizations rarely support small projects, so it makes sense to seek the help of private investors only if the farmer thinks globally and can justify his plans.
Recommendations to applicants for participation in the state program
Obtaining a grant for the development of agriculture involves several stages. The successful implementation of each of them determines the probability of receiving financial assistance. So, based on the experience of farmers who have already participated in the competition, practical advice can be given to future applicants:
- Each region has specific features of the competition, which should be considered when developing a project and preparing a package of documents.
- The validity period of the certificates should be taken into account, otherwise you will have to collect the documents again.
- As already mentioned, the commission studies the business plan very carefully, so it is worth taking the drafting of the document very seriously.
- Even before preparing to participate in the competition, you should carefully study all the conditions for the provision of material assistance in a particular region.
- It is important to strictly follow all reporting deadlines.
Responsibility for misuse of funds
A grant for the development of agriculture, and further appropriation of funds may be regarded as fraud or misuse of budget money. The latter already entails criminal liability.