KPMG: Confirmed, the subsidy change will negatively affect 2,000 large companies

KPMG: Confirmed, the subsidy change will negatively affect 2,000 large companies
KPMG: Confirmed, the subsidy change will negatively affect 2,000 large companies

VR is a dog of 30,000 applicants for the European agricultural pension, the change will change the payment of companies up to 500 hectares, according to a document available to iDNES.cz. The Chamber stated that the biggest companies will fail and become bankrupt.

Large enterprises, and there are countless of them, are responsible for approximately 77 percent of cattle breeding in R, and manage 63 percent of the land.

The agricultural organization, which represents the majority of companies, staged demonstrations in two cases due to changes in subsidies. The government is promoting a fundamental change, not even realizing the economic consequences of its decisions. The president of the union, Martin Pcha, explains that the minister only ignored our polls and data.

End of discussions, there will be money for the first hectare

One of the main demands of the chamber and the union is a change in the so-called redistributive payment, i.e. payment for the first hectare. In them, 23 percent of total payments should be redistributed from the fifth year, the chamber wants to achieve a maximum redistribution of 10 percent. In neighboring countries, such as Poland and Germany, according to the two Pchovs, this rate is up to 12 percent.

The purpose of redistributive payments is to compensate for the economic disadvantages of small farmers, since they cannot use such disputes on the scale of companies. In our conditions, however, 23 percent of the electorate is a surprisingly high number, which does not correspond to the structure of Czech agriculture. Compared to Western Europe, the agricultural production here is relatively small, Radek Chaloupka added for KPMG.

The discussion is practically over, however, he sent his full version to Brussels before the holidays, and now it is still waiting for its approval by the European Commission. KDU-SL president Marian Jureka also raised the issue that the largest companies are waiting for a dream subsidy in the past at one of the demonstrations.

He stated at the time that the government is preparing a program to compensate for the dream of social welfare, the lion should be mainly for the breeding of animals and breeding of so-called sensitive commodities such as hops, vegetables or fruit. The current Minister of Agriculture, Zdenk Nekula, wanted to have the proposal discussed by the government, but so far, the People’s Minister has not given it a chance.

The first losses are without subsidies for fruit

The study then examined the economy of those commodities that are common in the Czech countryside. lo about warbler, milkweed, potatoes and apples. According to him, without subsidies it would not be worthwhile to grow or sell any of it at the present time. According to data on the state of the agricultural economy and information from 2020, the consumption of milk was 2653 K per 100 feeding days. The warbler was grown with an average loss of 8,554 crowns per hectare, potato production is minus 44,823 crowns per hectare, and fruit apples were even 84,404 crowns per hectare, the organizations said.

After a while, however, these feelings will change, as evidenced by the ministerial so-called Zelen in the first half of a year. According to its preliminary version, the overall profitability of the warbler was 44.7 percent, which is an increase of 13.4 percentage points. The same rate for milk increased by 19.71 percent last year, midyear decreased by approximately 1.4 percent, and for potatoes last year it decreased by 12.7 percent.

The article is in Czech

Tags: KPMG Confirmed subsidy change negatively affect large companies

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