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How to Get a Grant to Create an Orchard Farm

The government has launched a grant program for entrepreneurs who want to create and develop their own orchard farm. Participants may raise funding for planting a garden up to 25 hectares in size.

Funds may be granted to business entities - legal entities, individual entrepreneurs, the main activity of which is the cultivation of agricultural crops on their own or leased land, namely:

  • individual entrepreneurs (IE);
  • limited liability companies (LLC);
  • farming enterprises (FE);
  • private enterprises (PE).

The main requirements for the recipients are no entrepreneurial activity in the temporarily occupied territories and in the Russian Federation, not belonging to sanctioned persons, no open bankruptcy case and debts to the state.

The state will compensate 70% of the cost of the project for the participants who will create the first thousand hectares of gardens, for the rest - 50%. The participants may also raise loan funds under the 5-7-9 program for additional financing.

To participate in the program, it is necessary to prepare a business plan of your activity and submit it together with the application and the planting project through the Diya Portal. Next, the entrepreneur must open an account in an authorized bank branch, intended only for the purposes of his project.

The decision to allocate a grant is made by the Ministry of Agrarian Policy and Food within 10 days, provided that a compliant application with attachments is available. After receiving a positive conclusion on participation in the program, the entrepreneur must transfer his part of the project cost to the bank account. The state then sends its share to the same account.

The entrepreneur may use the grant only for the purposes defined by the program. This includes payment of wages, purchase of materials (tree seedlings, fertilizers) and equipment (for irrigation, etc.), planting of gardens. The bank provides support for the beneficiary’s expenditure operations from the account only in accordance with the planting project.

It is allowed to plant a garden on land, the right of ownership or use of which is confirmed by appropriate documents of title for a period of at least 25 years.

As part of the program, the participant is required to create from 3 to 20 new permanent and seasonal jobs, depending on the type of plants planted. An important condition is the employment of permanent workers in accordance with the standards per hectare: after that, the entrepreneur will be able to receive funds to cover the remaining 50% of costs. He must also carry out activities for at least 5 years and pay taxes and fees.

If he fails to meet these conditions, he must return the difference between the actually used budget funds and the actually paid taxes and fees. In case of inappropriate use of funds, state support shall be terminated, and the funds shall be returned to the state budget.

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