The interests of small and medium-sized farmers are defended by a specialized association - the public union "Ukrainian Agri Council". In recent years, representatives of UAC have been seen as the center of important events in the agricultural sector. They actively participated on the land market opening, fought for the soybean amendments abolition, opposed the quotas on imports of mineral fertilizers introduction and defended the interests of farmers in the south, who lost crops due to this year's drought.
On the main problems of the agricultural sector of Ukraine, ways to solve them, areas to work on the UAC Chairman Andrii Dykun spoke with the “Government Courier”
How can we describe the current trends in the agro-industrial complex: development, decline or both?
I would call it a development contrary. Ukraine is currently in a difficult situation: political turbulence, coronavirus crisis, the whole world is unstable. Our agricultural sector lacks a certain stability and uniform rules of the game.
For example, this year's abnormal drought in the south of the country. The worst situation was in the Ukrainian part of Bessarabia, where a third part of the harvest was lost. We started sounding the alarm in March. The state promised to help the harmed farms. But as a result, farmers were left alone with trouble. Of course, UAC did not leave its participants: we raised funds, bought seeds, some farmers shared the harvest and handed it all over to the affected UAC farms.
We need to prepare for the opening of the land market. But what about the farmers of the affected regions, where the crop failure has been going on for two years and they are on the verge of bankruptcy? Under such conditions, what land market can we talk about? It is definitely out of time in these regions. I emphasize that need clear rules of the game.
However, it is nice that farmers become more aware. This can also be called development. Everyone understands that strength is in unity, and we can stand our interests only together.
Every month more and more farmers join our association. And thanks to the cohesion of UAC, much has been achieved. This is the adoption of a civilized law on the land market opening, taking into account UAC proposals: reduced the concentration of land in one hand from 210 thousand hectares to 10 thousand; a transitional period has been established, during which only private persons - citizens of Ukraine with a restriction of 100 hectares and only then - legal entities will have the right to buy land; give the right to buy a land or not will be determined by an all-Ukrainian referendum.
The Law "On Agricultural Cooperation" developed by UAC was approved. We were stand up to the issue of quotas on imports of mineral fertilizers. If they were introduced, farmers would have the most expensive fertilizers in the world. For a long time, we fought for the abolition of soybean and rapeseed amendments. And we succeeded - now we have reasonable prices for soybeans and rapeseed.
Despite everything, the authorities hear farmers. And that is good.
What measures should be taken by the authorities to overcome the crisis in the agricultural sector because of the general economic downturn and the budget deficit?
First of all, it is necessary to adopt the bill №3131-d, which equalizes the tax burden per 1 hectare and is designed to bring all agricultural sectors legal. After all, of the more than 33 million hectares of agricultural land in Ukraine (excluding the occupied Crimea and the territories of Donetsk and Luhansk regions), more than 13.2 million hectares are cultivated illegally. That means that some farmers pay taxes, others do not. It is wrong. Everyone should be on an equal basis.
This year has shown that we are unsheltered to the economic consequences of natural disasters. Therefore, agricultural insurance is extremely important. UAC is actively working to promote it. But not only crops but also the income of farmers.
This practice is widely used in the United States: the farmer insures exactly his income, which he plans to receive. In the situation of natural disasters or changes in market conditions, he gets it anyway. The introduction of this type of insurance will be an advantage for the stable development of the agricultural sector. Relevant amendments to the Law "On Peculiarities of Insurance of Agricultural Products with State Support" were initiated by UAC. I hope the deputies will support them.
The irrigation system needs immediate restoration. Of the 2.1 million hectares of irrigated land that existed in Ukraine at the beginning of independence, about 500,000 hectares are currently irrigated. The first thing to do is to adopt a law on Water Users Associations (WUA), which will be able to take on the elements of the irrigation system and develop them by investing funds. And of course, the Irrigation and Drainage Strategy for the period up to 2030 should work.
Another measure to overcome the crisis in the agricultural sector is to reduce the VAT rate. And not only for grains, legumes, but also for finished products - dairy, meat products, sugar. This will stimulate prices to be lower for these products on store shelves and increase the purchasing power of citizens, which will increase production. We have already developed and submitted amendments to reduce the VAT rate from 20% to 14% on finished products.
It is important to regulate some issues in the Tax Code of Ukraine related to agricultural cooperatives.
Why, despite repeated promises, farmers are not returned to the relevant ministry? Is it easy for the professional community to work with the authorities without it?
I remember the work of the Ministry of Agriculture in recent years and I can say that everything depends on the leadership. There were ministers, it would be better if there was no ministry at all. But we need the Ministry of Agrarian Policy, but not because we can't work without it. As an agriculture association, we cooperate with the Cabinet of Ministers of Ukraine, relevant ministries and organizations, the Verkhovna Rada to carry out effective reforms in the agricultural sector and ensure the development of rural areas.
But our country is export-oriented. And the relevant ministry must work on new markets opening. We have to be at the top. And in some countries, particularly in the East, the status of the person being negotiated matters. In order for us to increase the export of our products, we definitely need a ministry. This is the first thing.
The second thing, the minister is a member of the Cabinet of Ministers and the voice of farmers in parliament. It is very important. And we must not forget that the agricultural sector is the driving power of Ukraine's economy. Even in countries where the agricultural sector has 1% of GDP, there is a ministry of agricultural policy. And in our country, where the agricultural sector accounts for more than 15% of GDP, there is no ministry. This is illogical.
A few years ago, we often heard complaints that the state does not have a powerful agrarian lobby and the voice of the agrarian community is not heard in full. What has changed since that times?
I made this conclusion in 2014, when I was Deputy Minister of Agrarian Policy. At that time, the idea of abolishing the special VAT regime was being considered, which was not for that time and could lead to the destruction of many agricultural enterprises.
I was told then: it is possible to stop this only if the farmers go out to protest. I appealed to agrarian associations, but no one came to the protest campaign except my friends from agriculture sector. Unfortunately, this was not the time. But then I realized that the Associations of Milk Producers and "Ukrainian Pig Breeders" were not enough. (Andrii Dykun - the founder of both associations: AMP - 2009, AUPB - 2011.). We need to look much wider and go beyond animal husbandry.
Therefore, we decided to establish Ukrainian Agri Council on the basis of active participants of AMP. Initially, it included 16 companies, and now UAC is a powerful association of more than 800 agricultural enterprises. These are completely different people, from different parts of Ukraine, but we are united by agriculture and love for the land.
We started a cooperative movement. The First Ukrainian Agricultural Cooperative (FUAC) was organized at UAC, which works for the members of our association. We are working on the development of agricultural education. It is difficult for me when our best specialists go to work abroad and raise agriculture there. That's why we start educational projects.
The Ukrainian Agrarian Lyceum has been operating in Uman for three years now. This is almost the only pilot project in Ukraine where the Finnish model of education has been implemented. This year was the first graduation of our branch - a regular school in the village of Tyshkivka, Kirovohrad region. The average score of graduates (and there were 12) was 143. And it inspires hope that in our rural schools we will be able to give a quality education to our children.
We have a lot of work ahead of us: to defend the interests of Ukrainians and to convey to our compatriots that agrarians are a powerful force now.
So, what about the next goals of UAC?
Cooperation development. We will create various cooperatives that will become the economic basis and foundation of the agricultural sector of Ukraine.
Another goal is the development of our powerful analysis center "Smart Country", which was created on the basis of UAC in early autumn. Now it is in the process of formation, but the first results of its activities are already there. We will soon present UAC analysis center to the public. His task is to develop bills, depth analysis of what has already been written, work with various branches of government.
We understand: there are laws that farmers need. And there are those that directly or indirectly affect our lives, the development of the agricultural sector. And these bills can be considered in various committees. So that there were no unpleasant surprises and we could keep our hands on the pulse, we decided to create an analysis center.
We want to develop in this direction not only in Ukraine but also abroad. Many decisions regarding Ukraine and the agricultural sector are made in Brussels and Washington. We must defend our interests far beyond Ukraine.
We will help our communities get back on their feet. We all understand that the country is being built from below. UAC participants took an active part in the local elections. Many of them became deputies, became heads of united territorial communities. Farmers have extensive experience in management, they are not afraid of responsibility. I think it will be a new challenge for us to promote community development. The main thing is that we go for it consciously.
Saturday, 14 November 2020