Ignaty Araqelyan: In 2-3 years a developed system of agriculture will be created in Armenia

ArmInfo. In 2017, the Ministry of Agriculture of Armenia ensured the implementation of not only budget programs, but also initiated the launch of three new programs. This was stated by the head of the department Ignaty Arakelyan on October 11 at a meeting with journalists.  According to him, when implementing these programs, in 2-3 years it will be possible to achieve significant progress in the agrosphere.

As noted by Arakelyan, to solve the problems associated with the low level of technical equipment in the framework of the program of providing agricultural machinery in financial leasing, the country's farmers have already received 132 units of agricultural machinery, an agricultural equipment station was set up, which involves the provision of services to small farms. The creation of another station will be possible after a few months. According to the program approved by the Cabinet, farmers get the opportunity to purchase agricultural equipment on the following conditions: advance payment - 20%, interest rate - 2% per annum, maturity - 3-10 years, depending on the type of equipment. Another 7% will be subsidized by the state. As a result, it is expected that in 2017 about 2.2 billion AMD will be allocated for the purchase of agricultural machinery.

With the World Bank, the "CARMAC" program is being implemented to modernize the water supply system, to create and support cattle-breeding cooperatives. Within the program till the end of the year, 120 units of agricultural machinery will be provided for the amount of 550 million drams on the following terms: 80% of the cost is allocated by the state, and 20% is contributed by the cooperative. According to the minister, in order to ensure available financial resources in 2017, the Ministry gave start to 3 programs, another 3 will be launched in 2018. 2.3 billion AMD will be allocated for the implementation of the program of preferential crediting of processing enterprises, loans will be issued for a period of 1 year, at 3% per annum (9-11% will be subsidized by the state). Of the nearly 100 processing enterprises, about 20 of them can benefit from the program.

From 2018, the introduction of an affordable credit program for the development of drip irrigation is expected. Within the framework of this program, land loans will be granted to agricultural users at 2% per annum for a period of 3 years (up to 12% is subsidized by the state). It is expected that the system will increase the efficiency of the country's water resources use, and will also allow to reduce water consumption by up to 40%, while at the same time increasing yields, fruit quality and sowing areas.

Available loans for establishing anti-hail networks at a rate of 2% per annum will start issuing from 2018.  The Armenian government subsidizes credits for anti-hail networks for 1,350 hectares. Credits to farms will be issued for a period of 7 years at 2% per annum (7% are subsidized by the state). In 2018, loans will be issued for 7 billion AMD, and the state will send about 700 million AMD to subsidize interest rates.

Next year, a program will be launched to provide affordable loans to create intensive gardens based on the latest technology at a rate of 5% per annum. Loans to farmers, as indicated by the minister, will be issued for a period of 5 years at 5% per annum (the state subsidizes up to 9%) to create intensive gardens with an area of no more than 10 hectares.

Earlier, ArmInfo informed that the purpose of the Armenian government for 2017-2022- to ensure an annual increase in gross output in the agricultural sector by at least 5%. According to the program of measures for the next five years, for the development of agriculture, government actions will be aimed at the development of crop production by increasing the capacity of breeding stations for the production and growing of seeds. To ensure a sustainable harvest, the government plans to implement plant protection measures, including pest control measures. In 2018-2022 it is expected to implement a program to ensure the availability of a wide range of fertilizers for the villagers. Until the end of 2017 will be developed and during 2018-2022 implemented a program of state action to create intensive fruit gardens, bringing their area to 100 hectares.