Agroinvestor reports on the Russian agricultural machinery market, which has been experiencing a steady decline in demand for several seasons in a row. The main factors behind this trend are limited access to financing for farmers, a high key interest rate, and weaker investment activity in the sector.
The article features a comment from Vyacheslav Kharitonov, expert in GR and regulatory risk assessment at Baikal Lobridge. He noted that the current system of support for agricultural machinery manufacturing is undergoing structural changes, but that targeted measures are no longer sufficient to offset the accumulated constraints in the industry.
In his view, the key issue remains declining profitability among farmers and restricted access to credit. Under these conditions, support measures for machinery manufacturers tend to play a stabilising rather than growth-stimulating role.
He also stressed that restoring investment activity in the sector will require broader measures aimed at improving overall profitability in agriculture. Without this, demand for agricultural machinery is likely to remain under pressure, and fleet renewal will continue to slow.
Among the possible solutions, he suggests considering lower export duties on key export crops and bringing back support for agricultural machinery exports through a buyback guarantee mechanism. This could help improve overall profitability in the agricultural sector and naturally stimulate demand for farm machinery.
Read more in Agroinvestor.
The article features a comment from Vyacheslav Kharitonov, expert in GR and regulatory risk assessment at Baikal Lobridge. He noted that the current system of support for agricultural machinery manufacturing is undergoing structural changes, but that targeted measures are no longer sufficient to offset the accumulated constraints in the industry.
In his view, the key issue remains declining profitability among farmers and restricted access to credit. Under these conditions, support measures for machinery manufacturers tend to play a stabilising rather than growth-stimulating role.
He also stressed that restoring investment activity in the sector will require broader measures aimed at improving overall profitability in agriculture. Without this, demand for agricultural machinery is likely to remain under pressure, and fleet renewal will continue to slow.
Among the possible solutions, he suggests considering lower export duties on key export crops and bringing back support for agricultural machinery exports through a buyback guarantee mechanism. This could help improve overall profitability in the agricultural sector and naturally stimulate demand for farm machinery.
Read more in Agroinvestor.
