<P> In 2016 Russia gained and exceeded Soviet Grain Production levels . </P> <P> While agricultural policy in Russia had been poorly structured and largely unsuccessful, some basic trends have helped to create forces for change . The first is that state tax revenues have been falling, and hence the spending capacity for agricultural policy has been falling . Total federal transfers to agriculture fell from 10% to 4% of GDP from 1992 to 1993, and budgeted transfers for 1994 are about 5% of GDP . </P> <P> There has been improvement in the agricultural credit situation in Russia over the past five years--for some farms, at least--due largely to subsidies from the federal government . The national project for agriculture has given impetus to the growth of small farms . During 2006, 36 billion rubles in credit were given to more than 100,000 recipients (as compared to 3.4 billion rubles in credit to 2,500 borrowers in 2005). Traditional farms and personal plots play an important role in the sector, providing more than 87 percent of all production . </P> <P> The State offers in - kind credits, whereby seed, fertilizer, and other inputs are provided in exchange for grain harvested at the end of the season, though the use of in - kind credit is reportedly decreasing . The government also provides subsidies for the purchase of plant - protection chemicals and fertilizers, and subsidizes two - thirds of the interest rate on loans from commercial banks, which provide the majority of farm credit . Banks remain cautious and insist on certain farm management practices and minimum levels of input use before granting loans (a policy which, according to some observers, has had a significant positive effect on overall efficiency in the agricultural sector), but banks' confidence is boosted by increasingly reliable guarantees from regional administrations who see stability of food production as a high priority . Banks recognize the inherent risk in agricultural financing but also see agriculture as less risky than other industries and are generally willing to lend money to solvent, well - managed farms . </P>

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