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EXPERT: FARMS IN ARMENIA SHOULD MERGE INTO COOPERATIVES MORE INTENSIVELY
YEREVAN, October 11. /ARKA/. Farms in Armenia should merge into
cooperatives more intensively, Sarkis Sedrakyan, chairman of the
Farmer Movement nongovernmental organization, said Friday at a news
conference.
"Land cultivation on small areas in Armenia is not effective, and
therefore farms should merge into cooperatives to enhance their
labor efficiency," he said adding that there are 315,000 farms in
Armenia now.
In his opinion, cooperatives will make it possible to cut expenses,
to lower prime costs of products and to enhance productivity of the
cultivated land.
Sedrakyan said that the government, on its side, should provide
comprehensive support to new cooperatives by providing them
agricultural machinery for free and seeds, fertilizers and diesel at
preferential prices in the first year.
The expert also finds it necessary to revise terms of lending to
farms. In particular, interest rates on preferential agricultural
loans should be lowered from the present 14% to 5%, and maturity term
should be prolonged to five years.
On April 1, 2011, the government decided to subsidize 4% of 14-percent
interest rate on agricultural loans. The total amount of subsidies
is AMD 200 million.
These loans are extended in Armenian drams. An average amount of one
loan is AMD 625,000.
Grace period lasts six months, after which only interests are paid
and other payments are made within the next six months.
There are 3,737 industrial and 307 consumer cooperatives
in Armenia now. ($1 - AMD 407.50). ---0--- - See more at:
http://arka.am/en/news/economy/expert_farms_in_armenia_should_merge_into_cooperat ives_more_intensively/#sthash.PHY4u2h0.dpuf
YEREVAN, October 11. /ARKA/. Farms in Armenia should merge into
cooperatives more intensively, Sarkis Sedrakyan, chairman of the
Farmer Movement nongovernmental organization, said Friday at a news
conference.
"Land cultivation on small areas in Armenia is not effective, and
therefore farms should merge into cooperatives to enhance their
labor efficiency," he said adding that there are 315,000 farms in
Armenia now.
In his opinion, cooperatives will make it possible to cut expenses,
to lower prime costs of products and to enhance productivity of the
cultivated land.
Sedrakyan said that the government, on its side, should provide
comprehensive support to new cooperatives by providing them
agricultural machinery for free and seeds, fertilizers and diesel at
preferential prices in the first year.
The expert also finds it necessary to revise terms of lending to
farms. In particular, interest rates on preferential agricultural
loans should be lowered from the present 14% to 5%, and maturity term
should be prolonged to five years.
On April 1, 2011, the government decided to subsidize 4% of 14-percent
interest rate on agricultural loans. The total amount of subsidies
is AMD 200 million.
These loans are extended in Armenian drams. An average amount of one
loan is AMD 625,000.
Grace period lasts six months, after which only interests are paid
and other payments are made within the next six months.
There are 3,737 industrial and 307 consumer cooperatives
in Armenia now. ($1 - AMD 407.50). ---0--- - See more at:
http://arka.am/en/news/economy/expert_farms_in_armenia_should_merge_into_cooperat ives_more_intensively/#sthash.PHY4u2h0.dpuf