North Caucasus food security

by Pavel Martynov, exclusively for VK

The Russian  government has finally passed a state program for development of agriculture for 2013-2020 in mid July. It includes projects and purpose programs that would determine the main objectives for development of agriculture in the next 7 years. This includes social development of villages, support of animal husbandry, restoration of land fertility. Long disputes have resulted in agreements on financial support of the program by the federal budget. It is now worth 1.5 trillion rubles (instead of 2.5 trillion). The Agricultural Ministry has admitted that the volume of state support does not affect the final result of realizing the program. The ministry plans to achieve about the same results with less cash. Ъ says that the Ministry for Agriculture gave clarifications: “Corrections were made in almost all sections of the state program, although new expenses occurred, such as, for example, subsidies for milk”. In general, it says, the edited version of the state program has “some reserve for increase of the “yellow basket” of the WTO in case the expense section of the budget should be redistributed, as it happens several times a year”.

At the same time, the state program is aimed at diversification of goods and avoidance of exports of raw materials: “The products exported should not be mere grain, because it is a raw material as well. There is need to increase goods with high added value. It is the main condition for competitive national products at the domestic market, the Customs Union and the WTO”, Minister for Agriculture Nikolai Fedorov said at a governmental session.

Fedorov was then on his way to develop agriculture of the North Caucasus in Karachay-Cherkessia, where over 60% of the population is rural, which is a much greater figure compared with that of other regions. The minister noted that the level of state support for social development of villages need new considerations. Karachay-Cherkessian Leader Rashid Temrezov promised that the republic would increase meat production to 70,000 tons in 3-4 years, the highest output reached in 1990, and that the number of cattle would increase by 10%.

Nikolai Fedorov said during his visit to Karachay-Cherkessia: “Preservation of the zero rate for income without time limitation is a significant boost for development of the whole agro-industrial complex. It is a very important decision allowing agricultural manufacturers to lose a major burden distracting them from work. Agricultural manufacturers should not be burdened with accountability. This tax burden is alien for farmers that make products. We explained that this policy is the most reliable way provide goods for food security and gain support of state authorities”.

Fedorov understood that the “federal policy should constantly be compared with what is being realized in regions”. When making conclusions from what he saw in Karachay-Cherkessia, he realized that federal policy is generally developed reasonably, according to some of the highest-priority problems, such as water supplies, fulfillment of agricultural demands, development of agriculture. Together these are issues of state sovereignty, food security of Russia.

Rashid Temrezov admitted that most development of agriculture in the republic was carried out via federal programs. State support of agriculture reached 1.5 billion rubles last year, including 987 million rubles from the federal budget and 480 million rubles from the republic’s budget. “The forms of support realized in Karachay-Cherkessia are a sufficient contribution to development of our farms, personal gardens, startup farmers, development of social rural infrastructure. Perhaps, we are not the most agrarian region in the country, nonetheless, we have positive growth rates. Besides, with account of launch of new efficient programs of agricultural support, we see the future with optimism”, Temrezov said.

One of the problems dragging development of agriculture is the Big Stavropol Canal built for the needs of the Stavropol Territory and Kalmykia, Temrezov mentions. The canal causes occasional floods for one of districts in Karachay-Cherkessia. This is why the district with high agricultural potential remains unclaimed for agriculture. Nikolai Fedorov promised to resolve this problem.