Picking Up Speed of Tractors

Krasnodar, 11 March. Kuban farmers have reportedly received another opportunity to buy agricultural machines and mechanisms at privileged prices - due to the new regional program to be launched this April. A farmer will be able to buy a vehicle with a 15% discount, and the difference will be paid to the manufacturer from the regional budget. Both market players and experts have positively assessed the new regional program. 

“Every manufacturer is interested to participate in subsidy programs, because they increase availability of the products for the consumers at the expense of discount prices, and stimulate further demand,” Oleg Nikolaev, John Deere’s regional representative in the Southern and North Caucasus Federal Districts, comments. 

“This, in its turn, will give an impetus to additional manufacture, and improve the regional economic indicators; while the agricultural sector will enter a new level of technological advancement.” 

The experts also believe that to let the program work even more efficiently, it is necessary to thoroughly work out its provisions and gradually increase its financing coverage. 

“For instance, a local manufacturer producing about 350 items has to pay about 200 million roubles to get their products certified. It is a huge sum of money,” Vasili Abaev, Chairman of the regional Association of manufacturers of farming machinery and equipment, explained. “Besides, it is not paying to certify the entire assortment if ultimately the buyer orders only some products. This fact may become the reason for refusal of participating in the program. 

“I believe that the 80 million roubles allocated for the Kuban region [in the framework of this program] is not a big sum - they can be efficient as a starting point. It is necessary to continue the program and increase its financing. In my opinion, it will be necessary to increase it to 400 to 500 million roubles a year - only then we will be able to see some noticeable result.”

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