Where to get money for the start-up and development of agribusiness

Short description

The Russian government offers several financial support options for those interested in agribusiness. Farmers can receive state support for the purchase of land, equipment and construction, and may also receive partial or complete compensation for costs. Grant options include up to 1.5 million rubles for the purchase of items for agribusiness, and up to 5 million rubles for breeding cattle for meat or milk. Legal entities and individual entrepreneurs can get up to a 70% reimbursement for seed costs. Agricultural businesses throughout Russia can receive subsidies up to 100% for the first payment under leasing contracts for machinery. Finally, producers can receive a refund of up to 25% for transportation expenses for exports to countries within the Eurasian Customs Union.

Where to get money for the start-up and development of agribusiness

5 options for financial support for those who are drawn to the earth.

The state can support farmers financially: give money for the purchase of land and equipment, construction of buildings, and sometimes compensate the costs – partially or completely. For example, you can get a refund for the purchase of machinery, seeds, or even some work done.

We have collected grant options for those who are thinking of doing agribusiness.

If there are debts of more than 10 thousand rubles (for taxes, fees, insurance contributions), then grant support will not be provided. And if you receive the funds, you will need to report the expenses.

Support program for beginning farmers

What gives: up to 1.5 million rubles – for the purchase of agricultural plots, machinery, equipment, animals, fertilizers, seeds and seedlings.

Who can get: individual entrepreneurs – citizens of the Russian Federation from 19 to 58 years of age with two years (or more) of work experience in the agricultural sector and diplomas in specialties in agriculture.

What you need to prepare: business plan, start-up capital (at least 10% of the amount of the business plan and not less than 100 thousand rubles) and contracts for the sale of products. Even if the products have not yet been produced, a document confirming that the goods will be purchased is required.

What is important to consider: the commission selects regionally significant agribusinesses, but it is not known according to which criteria. And it is still not possible to participate in other state programs supporting small and medium-sized businesses.

A good example

Mykhailo Utrobin, creator of the “Morning on the Farm” brand, received a grant for beginning farmers. Financial support helped cover 75% of the costs of starting a business, and the farm paid for itself in two years. Now he sells milk, kefir, ice cream, and also bakes bread. Before farming, Mykhailo worked as a marketer, and this experience also came in handy for him – he himself runs social networks and promotes products.

“Agrostartup” grant

What gives: up to 5 million rubles – for breeding cattle for meat or milk. Up to 3 million – for other areas of agribusiness.

Who can get:

  • KFK – peasant and farm households.

  • PEs registered in rural areas for the year of grant distribution.

  • Individuals with citizenship of the Russian Federation who will register an IP or CFG within 30 days after receiving financial support.

What you need to prepare: start-up capital – not less than 10% of the planned expenses, expenditure plan, project of creation or development of the economy. As well as some other documents (the list differs for farmers from different regions).

What is important to consider: the grant will not be given to those who have already received or are receiving state support. The money must be spent within 18 months. It will be necessary to create at least one additional job if more than two million – two – and keep them for five years.

A good example

Olena Lonina received an “Agrostartup” grant and opened a poultry farm in the Sakhalin village of Chervona Tim. The sum of 4 million rubles was enough for the entrepreneur to buy chickens, ducks and geese (more than 1,200!). And she invested part of the funds in the development of a local farmer’s cooperative.

Reimbursement of seed costs

What gives: reimburse up to 70% of costs.

Who can get: legal entities and IP.

What you need to prepare: the package of documents differs by region, you can check the list here.

What is important to consider: not all seed costs are compensated. For example, in the Rostov region, expenses are reimbursed only for elite seeds.

A good example

Compensation for seeds can also be used by those who only plan to engage in farming. One option is to grow strawberries, seedlings or microgreens. Vertical farms — city greenhouses — are suitable for this. They can be of any size, and the equipment itself is adjusted so that the plants receive as much light and water as they need. vc.ru user Serhiy has been growing strawberries this way in Tyumen for the third year. He shared his financial model with anyone who was interested.

Preferential leasing of agricultural machinery

What gives: subsidies up to 100% for the first payment under the leasing contract.

Who can get: agribusiness throughout Russia.

What you need to provide: a package of documents approved by “Rosagroleasing” and a confirmation from the credit history bureau – that you do not have a loan for a car.

What you need to consider: farmers who bought a car on credit last year will not be able to use benefits. And for the year of receiving the discount, it will not be possible to take out other loans for the purchase of a car.

Reimbursement of transportation costs

What gives: refund up to 25% of expenses for transportation of products abroad.

Who can get: manufacturers who export goods to the countries of the Eurasian Customs Union.

What you need to prepare: invoices or acts of services performed, supply register and other documents as needed – the complete package is indicated on the website of the REC. An application for compensation can be left in the “One Window” service.

What you need to consider: the amount of compensation depends on the volume of deliveries in the reporting quarter. How much money to return – the commission calculates according to the formula.

Subsidy for construction and modernization

What gives: cover 25% of the cost of construction or renewal of commercial buildings.

Who can get: legal entities that need to build or repair vegetable storages, plant and animal nurseries, farms and other facilities.

What you need to prepare: a package of documents approved by the regional agro-industrial complex management body. You can find the site of your region here.

What is important to consider: the program will be effective only from January 1, 2024. If you started building or renovating farm buildings more than three years ago, you will not be eligible for the subsidy.

In addition to support measures for beginners, at the Ministry of Agriculture there are benefits for farms older than 3-5 years. For example, you can reimburse the costs of product certification or improving land fertility.

If none of the options are suitable, then you can look for other programs and learn about hackathons for agricultural specialists or present your startup to investors on the RSGB digital platform. Subscribe to the Telegram channel to always be aware of current news and events.

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