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Rules for Allocation of Subsidies for Purebred Livestock Breeding

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Rules for Allocation of Subsidies for Purebred Livestock Breeding THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 4/16/2015 GAIN Report Number: RS1520 Russian Federation Post: Moscow Rules for Allocation of Subsidies for Purebred Livestock Breeding Report Categories: Agricultural Situation Livestock and Products Agriculture in the Economy Policy and Program Announcements Approved By: Christopher Riker Prepared By: Staff Report Highlights: The Russian government’s “Rules for the Allocation and Distribution of Subsidies from the Federal Budget of the Russian Federation to the Regional Budgets for the Support of Livestock Breeding” were amended in early 2015. The amendment includes key qualification requirements, published by the Russian Ministry of Agriculture in late 2014, as well as lists of breeding stock producers eligible for subsidies from the federal budget (including beef and dairy purebred breeding cattle operations and genetics producers). Moreover, in the spring of 2015, given the current economic situation in Russia, the Russian Ministry of Agriculture issued additional recommendations to support domestic producers of purebred breeding cattle. Unofficial translations of all of the aforementioned publications are contained herein. General Information: On January 27, 2015, the Prime Minister of the Russian Federation, Dmitry Medvedev, signed Resolution No. 50 on amendments to the “Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding.” The Rules stipulated the procedures for the allocation and distribution of subsidies from the federal budget to the regional budgets of the Russian Federation for the support of livestock breeding, including: maintaining purebred breeding stock of beef and dairy cattle; maintaining sires of beef and dairy cattle breeds; and, purchasing (including via imports) genetic materials such as purebred young cattle, sires, semen and embryos to improve the milk and beef productivity. The rules also contain the qualification requirements for Russian regions to participate in the program, formulas to calculate the amounts of the subsidies that will be distributed, and indicators to be taken into consideration by the Russian Ministry of Agriculture to evaluate the results and efficiency of regional programs (see Attachment 1 for an unofficial translation of Resolution No. 50 amending Russian Government Resolution No. 1257 of April 12, 2012). Referenced within Resolution No. 50, the Russian Ministry of Agriculture approved and published key qualification requirements for agricultural establishments and private farms engaged in breeding livestock production to be included to the official list of subsidy recipients. The publication by the Ministry of Agriculture, in part, specifies the goals of the livestock breeding support program, and the qualification requirements (such as new breeding stock production and sales, as well as performance requirements for dairy and beef cattle, purebred swine, poultry, horses, sheep, and goats) (see Attachment 2 for an unofficial translation of the “Key Requirements Used in 2015 for Qualification of Agricultural Commodity Producers for the Allocation of Subsidies from the Federal Budget for Maintaining Breeding Livestock”). The Ministry of Agriculture of the Russian Federation also published lists of agricultural establishments and private farms, which qualify for subsidies in 2015 for: the production of beef cattle breeding stock (see Attachment 3 for an unofficial translation); maintaining pedigree breeding beef and dairy bulls (sires) (see Attachment 4 for an unofficial translation); and, maintaining livestock breeding stock, excluding beef cattle (see Attachment 5 for an unofficial translation). Lastly, in March 2015, the Russian Ministry of Agriculture issued additional recommendations to support domestic producers of purebred breeding cattle due to the economic downturn in Russia. Taking into consideration the cost of production, the Russian Ministry of Agriculture proposed support/subsidies of no less than180 thousand rubles, which covers approximately 30 percent of the cost of production for one breeding bull (sire) over 16 months of age (see Attachment 6 for an unofficial translation). Other Reports of Potential Interest: RS1512 Livestock and Products 2015 - Semi-Annual Report RS1427 Amended Agricultural Development Program 2013-2020 ATTACHMENT 1 BEGIN UNOFFICIAL TRANSLATION GOVERNMENT OF THE RUSSIAN FEDERATION RESOLUTION January 27, 2015, No. 50 MOSCOW On amendments to the Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding The Government of the Russian Federation establishes hereby: To approve proposed amendments to the Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding approved by Resolution of the Government of the Russian Federation of 04.12.2012, No. 1257 “On Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding” (Collection of Legislative Acts of the Russian Federation, 2012, No. 50, Art. 7073). Chairman of the Government of Russian Federation D. Medvedev Approved by RESOLUTION OF THE GOVERNMENT OF THE RUSSIAN FEDERATION dated January 27, 2015, No. 50 AMENDMENTS to be made to the to the Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding The Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding shall be amended as follows: Approved by RESOLUTION OF THE GOVERNMENT OF THE RUSSIAN FEDERATION dated December 04, 2012, No. 1257 (as amended by RESOLUTION OF THE GOVERNMENT OF THE RUSSIAN FEDERATION dated January 27, 2015, No 50) Rules for Allocation and Distribution of Subsidies from the Federal Budget to Budgets of the Russian Federation Constituent Subjects (Provinces) for the Support of Livestock Breeding 1. These Rules establish the mode of allocation and distribution of subsidies from the federal budget to budgets of the Russian Federation (RF) Constituent Subjects (Provinces) for the support of livestock breeding, including breeding beef cattle (hereinafter – “subsidies”). 2. The subsidies are allocated with the aim of co-financing the execution of expenditure commitments of RF provinces related to the implementation of RF provincial state and/or municipal programs envisaging support for livestock breeding, including breeding beef cattle; the support is provided as allocation of funds to agricultural commodity producers, except citizens maintaining private household/backyard farms (hereinafter – “agricultural commodity producers”) for the support of livestock breeding, including breeding beef cattle (hereinafter – funds for the support of livestock breeding, state and/or municipal programs, respectively) in the following areas: a) support for livestock breeding industry, including: maintaining pedigree breeding stock, except breeding beef cattle; maintaining sires of dairy cattle breeds - bulls over 16 months of age with proven high-quality off-spring or who’s offspring are undergoing quality assessment (hereinafter – “dairy sires”); purchase (including via imports) of dairy sires improving the milk productivity. Dairy sires purchased through imports should have positive genomic evaluation; purchase of pedigree young cattle of dairy breeds; purchase of semen of dairy sires; purchase (including via imports) of embryos of pedigree dairy cattle; b) support for breeding beef cattle industry, including: maintaining sires of beef cattle breeds - bulls over 16 months of age with proven high-quality off-spring or who’s offspring are undergoing quality assessment (hereinafter – “beef sires”); purchase (including via imports) of beef sires improving the meat productivity. Beef sires purchased through imports should have positive genomic evaluation; purchase of pedigree young cattle of beef breeds; purchase of semen of beef sires; 3. Subsidies are allocated to budgets of the RF provinces satisfying one of the following requirements (criteria): a) breeding livestock herds included in the state breeding register that are owned by livestock breeding establishments should be available on the territory of RF province (hereinafter – breeding herds included in the state breeding registry); b) producers of agricultural commodities should have livestock population on the territory of RF province; 4. Conditions for subsidies allocation and their spending include: a) availability of the approved state and/or municipal programs envisaging measures in the areas specified in p.2 of these Rules; b) availability of the budgetary appropriations in the budget of RF province (local budget) for the execution of expenditure commitments of the RF province (municipal units) associated with the allocation of funds for the support of livestock breeding within the state and/or municipal programs; c) availability of the regulatory legal act of the RF province establishing
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