We continue the column about those agricultural producers who are members of the UAC. Based on their own experience, they explain why it is worth to unite. In the section we talk about the work of their enterprises, expectations, challenges and views on the situation in the agricultural sector. A member of the UAC from Zaporizhia region Serhiy Kovdria talks about his enterprise “Saienko” AE, attitude to changes and challenges in the agricultural sector in his interview with “Agravery”.

Zaporizhia region every year surprises with its harvests and 2021 wasn’t exception. The region took the 5th place in terms of gross harvest of early ear crops, the 3rd place in terms of gross harvest of winter wheat and the 1st one in terms of gross harvest of peas. The region also received the largest gross harvest during the years of Ukraine's independence: 3222.6 thousand tons of grain were threshed.

These records and achievements would not be possible without the people who work on this land - farmers. One of them is Serhii Kovdria, who has been working in the agricultural sector for almost 22 years.

The “Saienko” AE Bank, headed by Serhii Kovdria, is about 1,500 hectares, together with leased pastures and chernozems. The farm grows a standard set of crops for this area: wheat, sunflower, corn and flax as a niche crop. Imported machinery is used in the fields. Animal husbandry also take place in the farm. The farmers told about current problems and experience of communication with officials.

There have been many changes in the agricultural sector recently, including the opening of the land market. How do you feel about that?

- We are a part of all changings for a long time, because of the land market was actually opened. Since 2003 the lands of farms have been sold without any prohibitions or restrictions. We have fields in cultivation, some of which are shares, and others in the status of allotments and gardens. I have always been surprised by the situation when part of the plot can be purchased and the other part - outside the land market.

After the opening of the land market, nothing new really appeared. Nowadays, most of the land plots are included in the land market and makes it more civilized. I believe that this step had to be taken and put in line with the law. This is exactly what happened on July 1, 2021.

Tax per 1 hectare is another innovation that came into force on January 1, 2022. The main motivation for its implementation is fight against illegal players of the land market. What is the situation in your region? Who are these farmers who work illegally and will such a mechanism work?

- That is a sore point for us. Farmers who work illegally unofficially employ people and cultivate the land, taking it from farmers who work legally, because without paying taxes, they can play with rent prices and raise the rent for the share so that people give it to them but not to us, the agricultural producers who work legally. I know, for example, some unfair people in the community, who cultivates 300 hectares of land, but they are not registered as official taxpayers. Everything is registered to landowners, as if they cultivate it, united territorial community pays minimal tax to the state (only the land tax and part of the income tax) but in reality, they use expensive agricultural machinery, ie they are financially reliable. Why do my employees and I pay taxes and others avoid it? It's not fair.

In other words, minimal tax liability – it is not enough measure, because the value of land in Ukraine, in my opinion, is incorrectly estimated. Even within one of our regions, the quality of land and its ability to generate money are different.

In addition to crop production, you are also engaged in dairy farming, which is currently in crisis due to rising gas prices and lower purchase prices for raw milk. What is the situation at your company and how do you figure it out?

- We do not have such a problem. Our processing enterprise, “Molis”, which buys raw milk from us, instead of gas use coal and fuel briquettes, so the reduction in purchase prices did not affect us, we rent milk at UAH12 per liter. We have a problem with logistics - the farm is far from the processor, and we sale raw materials in relatively small quantities, 2 tons. It is uncomfortable to pick up small batches when buying 14 tons at once - then the price may be higher.

Zaporizhia region is referred to the zone of risky agriculture, where the climate is drier. Has this problem affected your farm and how do you solve it? Do you use irrigation?

- There is no level field in our enterprise. Instead, we have some areas with slopes that are always dry. We use appropriate growing technologies. And irrigation is impossible, taking into account landscape, as well as the composition of soils and water. There are many meadows in the local water, it is very expensive to get rid of them, so we are looking for other ways.

Do you need help to resolve some issues right now?

- We have questions to territorial communities, especially about their financing. There are 2 types of communities: some are financed by enterprises’ taxes and these communities are interested in a positive investment climate, and as a result their budgets will be filled. The other ones are agricultural communities that live on forced land taxes, which are paid regardless of whether people work on the land. The fewer people live in the village, the easier it is for local authorities to redirect funds to other purposes, which sometimes are far from communities’ needs. With the second category of communities we face directly.

At present, some rural community authorities do not care whether people live here or not, who will cultivate the land in the region, it is important for them to receive taxes on time. And these people do not even think to fight against illegal accounting, salaries, they are not interested in the development of territories.

How do you think this situation can be changed?

- It is very difficult to be changed. The level of specialists’ education in the community is a big problem. People who are able to study leave the villages and do not return. Therefore, there is a lack of highly educated staff, which has a negative impact on the quality of management. Often people with insufficient knowledge hold leadership positions. Of course, there are exceptions, but it is a rare case when an uneducated person becomes a good leader.

The new legislation contributes to the fact that cash receipts to communities will increase along with the tax burden, and there are no people and staff - such a paradox. In addition, the death rate in the villages exceeds the birth rate, the villages continue to extinct. This negative trend continues and will not go anywhere.

Do you think farmers need public organizations?

- Yes, they need. Participation in public organizations gives an opportunity to break out of your circle, communicate with colleagues, unite for common goals. I am a member of the UAC for many years. When we meet, we discuss not only work moments or issues that concern only our company. We also discuss social issues. We discuss the land market, minimum tax burden, how to interact with communities, and so on.

Most farmers came to this business in the past being as foremen, agronomists, engineers and so on. In essence, they were not businessmen and they are afraid of everything new. It is frightening for them to join public organizations, because the thought is spinning in their mind: "I hope nothing bad come out of it." We persuade these farmers by our own example to change their opinions: we talk about the problems that we had and how they were solved.

But those farmers who came to the agricultural sector purposefully are more open for communication, they understand role of public organizations and how they can help. They create future in agriculture.