01.12.2018

State compensation for seeds of Ukrainian breeding

State program “Financial support for the development of farms”.
Amendments and supplements dated October 24, 2018, to the Procedure for using funds provided by the state budget to provide financial support for the development of farms.
Regulation 911 dated October 24, 2018.
Regulation 106 dated 07.02.2018.

We are glad to inform you that the state program “Financial support for the development of farms”, which started work in 2018, continues to work. The program provides support for farms and domestic breeders and seed producers. Therefore, in 2019, from the state budget, the government allocates 6.9 billion UAH in support of farms and UAH 1 billion to compensate for the cost of seeds of Ukrainian breeding.

On October 24, 2018, the Cabinet of Ministers of Ukraine adopted changes and additions to the Procedure for using funds provided for in the state budget to provide financial support to the development of farms in order to improve conditions.

From now on farms are compensated for:

– not 80 percent of the cost of seeds (excluding VAT), and all 100% of the cost of seeds

– the maximum amount of compensation increased from 30 thousand UAH, to 60 thousand UAH per farm, excluding VAT.

– the seed purchased is to be compensated not only to seed producers, but also to seed purchased from entrepreneurs and legal entities that carry out its sale.

– An exhaustive list of banks through which seeds are to be settled and now seed is compensated not only through state-owned banks, but also through other authorized banks whose list is expanding.

Thus, the support program for farms has not only increased in terms of compensation, but it should also become more convenient and get closer to domestic farmers as much as possible.

What do you need to do to get 100% seed compensation?

Step 1. To buy seeds of agricultural plants of Ukrainian selection from natural persons – entrepreneurs and legal entities that carry out production and / or its realization.

Step 2. To form a package of supporting documents for the purchase and sowing of seeds of domestic selection (in case of need, LIST’s managers will consult on the list of necessary documents).

Step 3. Submit to the authorized bank * the application and supporting documents (see paragraphs 6 and 7 of the Procedure) after sowing the seeds, but not later than on November 1st **

Step 4. Get funds to an account in an authorized bank.

* Purchase of seeds of domestic crops, the cost of which is subject to partial compensation, is carried out through authorized banks.

** The deadline for submission of documents for partial compensation of the cost of seeds to authorized banks – on November 1 of the current year.

Briefly about the main changes to the Procedure for using the funds provided by the state budget to provide financial support to the development of farms:

1. Item 3: Financial support is provided:

1) a farm that has a net income (proceeds) from the sale of products (goods, works, services) for the last year to 20 000 000 hryvnias, owned and / or used by agricultural land; registered in the current year to a farm owned and / or used by agricultural land, regardless of the amount of net income (revenue);

2) agricultural servicing cooperative:

milk and meat sectors, which include not less than 20 members, among which there should be one or more farms, and the other – individuals who own and / or use each of which are agricultural land and in the presence of animals, identified and registered in accordance with the law;

fruits and berries, vegetables, as well as harvesting and processing of wild berries, mushrooms and plants, which includes not less than 7 members, among which there should be one or more farms, and the other – individuals in the ownership and / or the use of each of which is not more than 100 hectares of agricultural land.

These farms and agricultural servicing cooperatives are recipients of financial support provided for by this Procedure (hereinafter referred to as “beneficiaries”). ”

2. In clause 5: “Partial compensation of the cost of seeds of domestic crops, purchased from individuals – entrepreneurs and legal entities that produce and / or implement it (hereinafter – partial compensation of the cost of seeds);”

3. At point 6: Financial support in the areas specified in paragraphs 2 and 7 of paragraph 5 of this Procedure shall be provided through authorized bank, which has signed from the Ministry of Agrarian Policy the Memorandum on the general principles of cooperation (hereinafter referred to as the authorized bank).

4. Item 7: In order to receive partial compensation of the cost of seeds of domestic crops of domestic production categories, basic, certified (in the amount of not more than 60,000 hryvnia per farm, excluding amounts of value added tax), recipients, in addition to the documents provided for in paragraph 6 of this Procedure , also submit a copy to the authorized bank:

a certificate certifying varietal quality of seeds;
a certificate certifying the seed quality of the seed;
payment order for payment for seeds;
consignment note (commodity bill of lading) on ​​the purchased seed;
the act of hanging the purchased seeds in the form approved by the Ministry of Agrarian Policy.
In the case of the purchase of seeds from individuals – entrepreneurs and legal entities not included in the Register of seed producers and seedlings, the recipients, in addition to the said documents, shall submit to the authorized bank the originals of the documents for the quality of seeds, as defined in DSTU 4138-2002 Seeds of agricultural crops, namely:

certificate for seeds – for basic seed;
seed certificate – on certified seed;
Hybrid Seed Certificate – Seeds of the First Generation of Hybrids.

The full version of the CMU Decree No. 106 “On Approval of the Procedure for Using the Funds Provided in the State Budget to Provide Financial Support to the Development of Farm Holdings” with amendments and supplements.