Urgent measures are needed to prevent a single farm from going bankrupt.
The Krasnodar Territory is finishing the 2022 harvest.
The main issue that worries agricultural producers is the cost for which they will be able to sell the grown products.
In the domestic market, grain prices continue to go down: the cost of wheat of the 4th grade has decreased from 18-20 rubles. per kg up to 12-13 rubles. per kg.
In general, a good harvest is expected in Russia, but the current grain prices in the domestic market, with rising production costs, do not cover the costs.
From the beginning of the year to August, the cost of goods needed for the production of agricultural products increased by 1.5-3 times.
The export duties introduced in Russia, on the one hand, help curb the rise in prices for socially important goods, but at the same time, on the other hand, they are not applied to companies such as, for example, suppliers of machinery and fertilizers, whose products are necessary for the production of agricultural products.
There is a situation in which the cost of grain production becomes higher than its value.
In connection with the above circumstances and in order to increase the profitability of medium and small farms, the Association of Peasant (Farm) Enterprises and Agricultural Cooperatives of Russia (AKKOR) proposes to fix for farmers in the Krasnodar Territory (and extend to the whole of Russia) the lower bar of the selling price, for example, for wheat of the 4th class not less than 15 rubles. per kg.
In addition, the Association proposes to create a state-owned grain company, which, in the event of a strong fall in prices for agricultural products on the domestic market, will buy products at the lowest possible price.
In the event of a rise in prices to a certain level, the producer should have the right to buy back his products from the grain company at the price that was previously fixed.
Since 2001, a mechanism for purchasing and commodity (for sale) grain interventions has been operating in Russia, and from 2022 it is planned to add sugar to grain.
Purchasing interventions (as part of the auction) were launched on August 1, 2022 at the National Commodity Exchange, but so far they have been unsuccessful.
Another measure proposed by the participants of the Krasnodar ACCOR is to redirect the funds that come from export duties to support precisely small forms of business, creating a monetary fund, the purpose of which is to support agricultural enterprises of small and medium-sized businesses.
