Since 2018, Armenian farmers will be able to attract affordable loans to establish anti-hail nets at a rate of 2% per annum

ArmInfo. Armenian farmers will be  able to attract affordable loans to establish anti-hail nets at a  rate of 2% per annum from 2018. On August 31, the Armenian government  approved a draft decision on subsidizing the credit program for the  implementation of anti-hail networks in Armenia's agriculture.

According to the Minister of Agriculture of Armenia Ignaty Arakelyan,  the lending program will be launched in 2018. However, already today,  there was a need for its earlier approval in order to enable  potential beneficiaries of the program to become acquainted with its  conditions.

As the minister pointed out, in 2018 the Armenian government will  subsidize 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 drams, and the state will send about 700 million drams to  subsidize interest rates.

According to Ignaty Arakelyan, it is believed that the cost of  networks is high, because of what the program may be less tempting  for its potential participants. Nevertheless, referring to the  analysis of the Ministry of Agriculture, the minister said that the  damage from hail of 45% or more in 7 years is 2.6 times higher than  the cost of networks, and with damage of 30% - by 70%. At the same  time, as Arakelyan stated, the establishment of anti-hail networks is  reasonable for growing high-value crops with adequate profitability.   "According to the calculations of the Ministry of Agriculture, for  the vineyards, the cost of establishing networks per hectare will be  up to 3.6 million drams, for fruit gardens the figure can reach 8  million drams.  And for those who are less solvent, the anti-missile  system will be installed under the program of the Ministry of  Emergency Measures," said the Minister.

According to the head of the Ministry of Agriculture, the expected  area of the establishment of anti-hail networks makes the production  of anti-hail networks in Armenia more attractive for the future  investor.

As ArmInfo informed earlier, starting in 2018 a pilot program of  agricultural insurance and installation of anti-hail networks will  start in Armenia. "We hope that within 2-3 years the Armenian economy  will reach the level necessary for the formation on the market of the  corresponding effective demand for the full implementation of  programs, otherwise it will be necessary to find mechanisms for the  implementation of these programs, since without them it will be  impossible to provide solution of the sphere's tasks,"Ignaty  Arakelyan said.