TNBiz (TNBiz)
Commodities  |  November 23, 2012 10:18:18

The government will decide whether the state will release 100,000 tons of cereals to farmers affected by drought


PRAGUE (MEDIAFAX) - The expected shortage of feed grain caused mainly by drought farmers could help solve the loan or sale of up to 100,000 tons of cereals from the state material reserves. The proposal will be discussed Wednesday Nečasův cabinet.

Lack of grain on the domestic market this year has caused adverse drought. "Not enough can be solved by a temporary reduction in the minimum limit of cereals by 100,000 tons as of 12th in 2013 to 31 in loans or sales. Assumed that feed grains will be provided for farmers operating in drought-affected areas," the explanatory report to the government .

Agricultural entrepreneur who would like to take advantage of opportunities in practice will have to apply to the Agency for Agriculture and Rural (AZV) to confirm that manages more than 30 percent of the acreage of land in the drought-affected areas.Which areas will fall into this category, the Ministry of Agriculture.

It also must apply the appropriate AZV to confirm the number of livestock units (LU), based on an extract from the central register of animals and the calculation of the amount of the entitlement to a loan cereals. While LSU is a unit that represents 500 kg live weight of the animal. Certificate must not be more than 30 days before applying. Subsequently, he may then be given a loan of up to one ton of cereal per LU ruminants and two tons per LU for pigs and poultry.

The actual farmer will ask for a loan Administration of State Material Reserves (ASMR), which is also signed by the relevant loan agreement.Applications for loans yet to be served on work at the renowned time management, so that in the event that the sum of all the requirements for a loan and sale of cereals will be more than 100,000 tons, a reduction could be made to individual requirements. In the event that the first bike loans and sales exhausted all allocated quantities of cereals may be declared second round.

Minimum loan amount is specified in the draft to 10 tonnes of cereals and the loan will be provided on the basis of a security by the applicant for SSHR, which will be used to cover the borrowed grain. In its provision is yet determined the amount of 0.485 percent interest per each month of the loan. In Stock picking and return goods for a loan, applicants will also have to pay the relevant warehouses handling fee in the amount of 78 CZK without VAT per tonne, while leaving, Stock.

"In the specific conditions and procedures for granting loans cereals, which will be prepared in cooperation between the Ministry of Agriculture and SSSA will specify various quality parameters for each feed grains (wheat and feed barley, maize). At the same time in these conditions will announce prices for individual feed grains , "describes materials.

Cereal stocks of fuel reserves will be lent is the price at which "in the case of non-lending will be possible to buy cereals so that the ASMR avoid the risk of possible losses." To feed wheat, feed barley and maize, the proposal allows for price 4500 CZK without VAT per tonne. The farmer will also have to provide and pay for transportation associated with the loan cereals.

"ASMR also feed grains may also be released through sale, provided that the selling price of cereals will be lower than the usual market price at the time of the trade, so that there was no State aid within the meaning of the Treaty on the Functioning of the EU," he adds material to the government.

Miroslav Kyncl, kyncl@mediafax.cz

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