Russia To Further Ease Borrowing Costs For Farmers

Russian Prime Minister Dmitry Medvedev has announced easy borrowing costs for the farmers.

As of now the interest rate on loan to farmers is 14 percent and after adding the subsidies it comes to 6 percent.

Meeting with the farmers from southern Krasnodar region Medvedev said a 5 percent interest rate would be better for the Russian farmers.

Medvedev shared his idea of giving the unused land to the farmers without red tape.

He added saying that the changes in legislation over time have made things easier, but it is not so easier the government would like.

The PM further said government should continue giving subsidies to the farmers to keep the program continue in full.

Russia is lately trying to diversify the economy from energy exports to agriculture as prices of oil has dropped to great extent in recent years, from $114 per barrel to $45.

Russia is currently the biggest wheat exporter in the world, overtaking the United States and Canada.

If believed to the Russian Agriculture Minister Aleksandr Tkachev, the country is looking ahead export 25 million tons of wheat in 2016.

Last year the grain harvest of Russia was about 104.8 million tons and the segregation is as below:

13.2 million tons of corn
1.1 million tons of rice
2.7 million tons of soybeans
900,000 tons of buckwheat