OREANDA-NEWS. October 12, 2011. The Government will forward 39.9 billion UAH to support agroindustrial complex in 2012, which 3.9 billion UAH or 10.8% exceeds the 2011 plan, and 11.9 billion UAH, or 42.5% exceeds the 2010 fact.

Agroindustrial complex of Ukraine has a great potential, and the government considers import and food price growth inadmissible. In order to let the Agrarian Fund influence the prices actively, and to enhance the country’s food safety, draft budget 2012 provides for credits amounting to 7200.0 million UAH compared to 2379.3 million UAH in 2008.

To create a civilized agrarian market, next year’s draft budget significantly increases governmental support of constructing agricultural commodity wholesale markets. 200.0 million UAH is scheduled to be allocated for this, which exceeds the 2011 allocation by 190.0 million UAH.

The most efficient type of agricultural complex government support is cheapening interest rate for credit resources involved in agriculture. Therefore, draft State Budget 2012 allocates 820 million UAH for this.

Budget expenditure for viniculture, horticulture and hop-growing are allocated in the amount of 1075.0 million UAH, which 60 percent exceeds the 2011 figure, and direct budget expenses for intensive plant-growing production are scheduled at 120.0 million UAH including:

- 50.0 million UAH – greenhouse construction refund,
- 70.0 million UAH – refund for energy used in irrigation filed watering.

The government also sees modern high-technology animal production as one of agriculture priorities. Support of this area will encourage the development of large-goods production, significantly raising the productivity of this area.

Draft budget 2012 therefore provides 1257.0 million UAH direct expenses to support animal breeding including:

- 700.0 million UAH – to stimulate constructing modern animal units by means of their cost partial refund,
- 262.0 million UAH – to provide budget grants for animal breeding,
- 75.0 million UAH – for selection in animal breeding and poultry production.

To establish the land market and make agricultural lands the basis for mortgaging, it is supposed to direct 566.9 million UAH.

Thus, a tendency has been retained and enhanced to concentrate the state policy on supporting and developing the agroindustrial complex of Ukraine in 2012.