2025 was a challenging year for agricultural producers, as preferential rates were raised. However, they are expected to fall back to their original levels by 2026.
The Russian Ministry of Agriculture expects rates on preferential loans to return to 1-5% as early as 2026. This was recently announced by Agriculture Minister Oksana Lut.
«This year, we had an anti-crisis situation: we raised rates on investment and short-term preferential loans.
Starting next year, this anti-crisis measure will be removed, and we will return to rates of 1% to 5%. We are returning to the 2024 model, to our normal life with preferential loans,» she notes.
Experts report that this could be a major positive for the entire industry, as preferential loans are in high demand in the agricultural market.
This form of government support is receiving the strongest response from companies in this sector, analysts emphasize.
Most likely, the potential reduction in the preferential rate for agricultural producers to 1-5% is a direct consequence of the Central Bank of the Russian Federation lowering the refinancing rate in 2025.
Although it is still quite high at the end of 2025, many experts are confident that its decline will continue in 2026.
This creates an opportunity for the government and banks to lower other rates that are, in one way or another, tied to the key rate. This includes interest rates on preferential loans.
It is emphasized that the current preferential loan rate for agricultural producers is around 7%.
This is significantly lower than market rates, which are around 16-20%. Nevertheless, every percentage point creates a significant burden on businesses, which is especially noticeable given that, under the current circumstances, some companies are generating minimal, zero, or even negative profits.
For this reason, experts believe that reducing the cost of subsidized loans could be a very significant support measure.
Furthermore, Agriculture Minister Oksana Lut recalled another support measure: compensation for banking institutions of up to 70% of the interest rate on new loans.
This decision will allow financial institutions to earn money even while offering low rates to farmers.
Nevertheless, some experts doubt that the reduction in the interest rate on subsidized loans will actually occur next year.
The Russian budget deficit will inevitably lead to some programs having to be cut. And no one can yet say for sure whether this will affect agricultural support programs.
