The Government of the Republic of Armenia

Chaired by Prime Minister Karen Karapetyan, a consultation was held in the Office of Government, during which the representatives of the Ministry of Agriculture introduced to farmers the programs for the development of the agricultural sector in different directions.

Addressing the meeting, the Prime Minister noted that the Government’s chief objective is to increase productivity in agriculture.

“Based on the findings of our Marz visits and relevant surveys, we have highlighted the following areas: minimization of costs based on local soil and climatic conditions, establishment of a more efficient system of disaster management, developing new complex solutions for efficient water resource management, use of modern technologies in agriculture, formation of a system that will allow us to have a clear idea of what should be produced in a specific area and training of relevant professionals,” Karen Karapetyan said, prioritizing the provision of consulting services in the field of agriculture.

As a result, we will have a profitable and sustainable agriculture, which in turn will lead to increased food security, substitution of imported products, enhanced quantity and range of goods exported from the country to result in additional jobs.

“Which is the way to that objective? We will provide the necessary prerequisites for establishing intensive gardens as a pledge for guaranteed harvests. We will promote small, medium-sized and large farms. The State will be subsidizing agricultural credits so that beneficiaries will enjoy a 5% annual interest rate on the loans with up to 7 years maturity,

We will gradually switch over to the drip irrigation system: a State support program has already been developed to that effect. Land users will be provided loans with 2% annual interest rate and 3 years maturity,

Under the Government’s lease support program, we will provide for the financial leasing of agricultural machinery. Here, we have the opportunity to make use of the 20% prepayment from the program, with 2% annual interest rate and 3-10 years maturity, depending on the type of equipment,

We have set a preferential gas tariff for greenhouse farms, as well as for all those engaged in this sector - canned food, beverages and dairy products,

To deal with the problem of procurement payments, we have already launched the program of affordable lending for processing entities, which implies lending at a 3% annual interest rate.

We will make the subsidized interest rates more affordable for farmers, and we will increase the subsidy amount by allowing them to get a loan from the financial institution at a 5% annual interest rate, setting the threshold of 3 to 10 million drams instead of the previous 3 million,

We will safeguard the agricultural sector against natural disasters. A new anti-hail missile system will be piloted in Armavir Marz for a few months, after which it will be applied nationwide,

In animal husbandry, we will expand the range of high-milk and higher yielding breeds; we will provide solutions for veterinary treatment and slaughtering,

We will create refrigeration farms in different regions to keep the surplus fresh harvest in refrigerators,

We will shift to high-value plant cultivation,

We will expand organic agriculture by specifically supporting increase in local organic fertilizers and local organic products,

We will ensure the effectiveness of the existing advisory system and will make targeted efforts to raise awareness among farmers and potential investors,

And finally, we will improve the legislative framework,” the Prime Minister said.

Karen Karapetyan expressed confidence that the Government has chosen the right targets and tools for the development of agriculture. “Thereby we will not only solve welfare problems, but also create modern, profitable and industrialized agriculture,” Karen Karapetyan underscored.

Afterwards, the representatives of the Ministry of Agriculture gave details about slaughterhouse capacities, partial subsidizing of interest rates for agricultural sector, partial subsidizing of interest rates on loans available to processing industries in agriculture, financial lease of agricultural machinery, the State support for financial leasing, hail protection networks, introduction of the drip system in agriculture, establishment of modernized intensive orchards, as well as about the Agriculture Development Fund-implemented programs.

During the detailed discussion that followed, the farmers’ representatives came up with various proposals on the projects, raised numerous issues of their concern, which were given comprehensive answers.

Prime Minister Karapetyan stressed the need for holding continued discussions, noting that the farmers must act as active participants in the proposed programs.