Russian Ministry of Agriculture Predicts Sustained Farmer Profitability in 2024

Chances are high that despite natural disasters, the profitability of agricultural production in 2024 will remain at the same level as in 2023, Elena Fastova, Deputy Minister of Agriculture of the Russian Federation, stated in an interview with Rossiyskaya Gazeta.

“Undoubtedly, farmers who failed to reseed and those without insurance may face some profit losses. Nevertheless, the surge in grain prices, driven by recent events, suggests that this year’s profitability should at least match that of 2023,” said Elena Fastova.

She reminded that in 2023, the agricultural sector maintained a profitability rate of 19%, holding steady from the previous year’s performance, with the livestock farming segment registering a slight increase in profitability.

For 2024, the budgetary allocation for agribusiness support is provisionally set at 538 billion rubles. The deputy minister noted that this figure is slightly down from 2023’s 540 billion rubles, adding that the final amount for 2024 is yet to be determined. “With the key rate on the rise, we must explore additional sources to bolster state aid for the agricultural sector,” stated Elena Fastova.

Based on figures from the Ministry of Agriculture, a total of 219 billion rubles have been spared for preferential loans this year, an increase from last year’s 201 billion rubles. Of this, 60 billion rubles are allocated for short-term loans, while 159 billion rubles are designated for investment loans.