Manufacturers of agricultural machinery complain about falling demand

The Rosspetsmash Association is worried that agricultural producers are buying less equipment. On this topic, the company sent a letter to Prime Minister Mikhail Mishustin.

According to Rosspetsmash, one of the reasons for the fall in demand is the rise in prices for agricultural machinery, which is inevitable, as production becomes more expensive.

In particular, this is due to the rise in price of imported components and equipment.

The second reason is the reduction in the range of equipment that Russian enterprises can offer farmers.

Under the influence of the same factors related to the restriction of imports, it was necessary to abandon the production of a number of items, so Russian enterprises are not always able to provide what farmers are used to.

Finally, another financial factor is the lack of money from the farmers themselves.

Despite the fact that last year turned out to be very fruitful, world grain prices fell, so the margins of the business decreased significantly.

Finally, the export duty does not allow to extract the proceeds, which would be enough for all expenses, including the purchase of equipment.

How is it proposed to solve the problem?

 

Rosspetsmash draws attention to 3 possible measures that the government could take.

— Increase subsidies for the transportation of products by rail, including from Siberia to other regions of the country.

Agrarians spend a significant part of the money on logistics, if these costs are reduced, then they will have more money to purchase equipment.

— Expand subsidies for farmers under the 1432 program, which provides for the reimbursement of part of the costs (10-15%) for the purchase of equipment.

According to experts, this amount of compensation is not enough to encourage farmers to actively buy equipment. In addition, it would be nice not only to increase the size of the subsidy, but also to provide access to small businesses.

— Cancel the export duty from April 1 for a period of at least 5 years, so that enterprises finally have money to upgrade their fleet of vehicles.

However, one can hardly count on the fact that the government will meet halfway in this matter.

If no action is taken in this regard, the decline in demand is likely to continue. It is already significant: Tatyana Medvedeva, head of Agrarum-tekhnika, reports that over the past year, demand first tripled sharply, then began to decline.

 

And at the moment, farmers simply do not have money, as well as the opportunity to receive profitable loans. Against this background, many are reducing the area under crops and just waiting.

True, the chairman of the board of the Association of Dealers of Agricultural Machinery Askhod Alexander Altynov believes that the situation is not critical, fluctuations in demand occur every few years.

At the same time, the government could support farmers in another way: by increasing the funds of Rosagroleasing. Then many companies could not buy equipment, but rent it.