The “I Am a Farmer” accelerator has been launched in Udmurtia, where participants will learn about the specifics of agricultural business in lectures and workshops.
The Ministry of Agriculture of Udmurtia has launched a free educational program for local novice farmers and agricultural cooperators. The accelerator is called “I am a farmer” and includes a series of training lectures and workshops conducted by representatives of the Gorbatov Federal Scientific Center For Food Systems UralBusinessLeasing Inc., MSP Inc., the Moscow Credit Bank (MCB), National Union of Agricultural Insurers, etc.
The first training stage started on February 20 and is planned to last until March 27. This is the time frame for 12 workshops where novice entrepreneurs will receive practical guidance on how to implement their business projects in agriculture. In particular, they will learn about the legal aspects of farming, business planning, the procedure for purchasing land, attracting investment, get acquainted with their peers’ experience, analyze key mistakes in the industry.
The first day of the accelerator was dedicated to the topical issues of the agricultural sector, namely digitalization, support for foreign economic activity, prospects for the development of recycling in the meat industry, etc. Natalia Bakhova, Head of Sales and Development of Products of Documentary and International Business at MCB, told farmers about the tools for supporting and developing foreign economic activity of agricultural companies. In her speech, she drew attention to the fact that to enter a foreign market, it is important not only to offer potential importers high-quality products at a competitive price, but also to take into account the specifics of logistics, infrastructure, and product promotion in the foreign market. Export of grain or fat-and-oil products, which constitute the key export items of the Russian agro-industrial complex, for other products usually does not raise any questions. However, there are economic and political difficulties and risks that arise with export of other products, especially those with high added value, or with the expansion of the geographic scope. In particular, it might happen that the shipped product is not paid for.
For the exporters to protect their business, it is advisable for them to cooperate with the banks, insurance companies, and agencies that have the necessary expertise to assess and hedge potential risks. This is especially relevant for SMEs, for they usually do not have full-fledged legal departments, marketing teams, or even translators who could study the contracts and analyze the potential market thoroughly. Banks are interested in the quality of this kind of work, since they lend to exporters so that they could generate revenue and therefore must prevent the risk of the company not receiving it. However, it is important for the Bank to have the necessary experience in the implementation of import and export transactions, and to be able to offer a wide range of products: lending, bank guarantees, letters of credit, export factoring, and others, Ms Bakhova listed. During the lecture, she gave examples of MCB’s cooperation with exporters, including, for example: a company from among the top 10 grain exporters; a manufacturer of meat products that supplies them to China; a large retail chain, and others.
Natalia Bakhova also told the novice farmers about the possibility of subsidizing loans for export-oriented agricultural enterprises. The Ministry of Agriculture will compensate them for 90% of the Central Bank’s key rate, with the loan rate remaining fixed ranging from 1% to 5% per annum. Manufacturers can attract both short-term loans for the purchase of goods that are necessary to ensure production or processing and sales, or investment loans for business development purposes, such as purchasing equipment, upgrading production, etc.
This year, it is the second time the “I Am a Farmer” accelerator is being held. Last year, its participants received 46 grants from Agrostartup for a total amount of 116.5 million rubles, plus 34.2 million rubles for the development of rural cooperation. 37 farms were created from scratch in Udmurtia. This year, new farmers can also apply for participation in the grant competition while they are training. The grant amount is of 120 million rubles, thanks to which, 36 farms and agricultural cooperatives should be launched in the Republic, according to the calculation of the Ministry of Agriculture.