Russia to Reduce Agricultural Subsidies to 23.3 Billion Rubles and Tighten Conditions from 2027
The document could come into effect on January 1, 2027, coinciding with the start of a new budget cycle.
Reduction in Funding and Redistribution of Resources
According to the draft, the amount of subsidies for priority agricultural areas in 2027 will be 25.28 billion rubles, nearly 10 billion rubles less than in 2026.
After redistribution within the state program, the actual funding for the relevant federal project will decrease to 23.28 billion rubles.
Partial recovery is expected in subsequent years:
- 2028 — 29.66 billion rubles
- 2029 — 29.66 billion rubles
However, even with the increase, funding will remain below previous levels.
Support for Milk and Grain Processing in Question
The project proposes to exclude several areas from the subsidy system, including:
- agrotechnological work and soil fertility improvement;
- environmental safety of agricultural production;
- deep grain processing;
- processing of raw cow, goat, and sheep milk.
Additionally, support for elite seed production will be moved to a separate federal project.
New Condition: Mandatory Agricultural Insurance
One of the key changes will be the introduction of mandatory agricultural insurance as a condition for receiving subsidies.
This requirement will apply to:
- breeding livestock;
- milk production and meat cattle farming;
- sheep and goat farming;
- care for perennial plantations (excluding vineyards).
Moreover, the calculation mechanism for subsidies will exclude bonus coefficients for having insurance, altering the economics of participating in the program.
