YEREVAN, JULY 25, ARMENPRESS. Farming businesses acquired around 2150 new agricultural equipment within the framework of the Agricultural Equipment Leasing Support Program which is implemented through government subsidy.

The purpose of the program is to increase the agricultural output and cut the farmers’ expenses.

Ministry of Economy Agricultural Program Development, Resource Use and Cooperative Development Department Chief Ira Panosyan told ARMENPRESS that they launched the program in 2017 as the agricultural equipment used by farmers was old and required upgrade.

The government is subsidizing the interest rate of the leasing. The banks issue 14% interest rate leasing, 12% of which is subsidized by the government so that the leasing is accessible to the farmers for 2%. The leasing is issued for a 10-year term, depending on the value of the equipment. The average term is 6 years.

However, farmers working in border towns and those who suffered disabilities in the military and are now in the farming business get a full subsidy.

Panosyan said the program is giving good results and the agricultural equipment in Armenia is being gradually upgraded.

“Since the beginning of the program around 2150 units of equipment were issued as part of 10 billion dram leasing. And only as of the 6 months of this year, 1,4 billion drams of agricultural leasing has already been issued,” she said.

Aside from increasing output and cutting spending, the program has an ecological goal given the emissions from old equipment.

Interview by Anna Grigoryan