AGCO-RM (a joint venture of AGCO, the international manufacturer of agricultural equipment, and the Russian corporation “Russian Machines”, part of the Basic Element Industrial Group) and the Ministry of Agriculture of the Russian Federation have signed an agreement for provision of subsidies for tillage and seeding equipment under Challenger brand. The subsidies will cover up to 30% of the machinery value.
On July 13, the Ministry of Agriculture of the Russian Federation and AGCO-RM joint venture signed a cooperation agreement under the government subsidy program for manufacturers of agricultural machinery. According to government decree No. 1432 “On Approving the Rules on Granting Subsidies to Producers of Agricultural Machinery” dated December 25, 2012, the government provides financial support to Russian manufacturers of agricultural machinery by subsidizing up to 30% of the produced machinery value. The agreement signed between the Ministry of Agriculture of the Russian Federation and AGCO-RM covers the Challenger 1435-30 disk harrows 9.1 meter wide, one of the most popular modifications in the market. This agricultural equipment is used for seeding preparation, return of crop residues and land restoration.
Mutual interest in improving Russian farmers’ fleet by providing modern, reliable, high-performance, Russian made equipment at an affordable price and with low operating costs was the reason behind the agreement. Following the agreement, the price for the government-subsidized machinery will be fixed for the whole year 2016.
The Challenger disk harrows 1435-30 have been produced at AGCO-RM plant in Golitsyno (GOLAZ) since October 2014. The manufacturing capacity is 300 harrows machinery units a year. The plant also assembles seeders, low-, medium- and high-power tractors as well as combines. AGCO-RM plans to further localize a wide range of machinery. GOLAZ manufacturing capacity allows producing 5 thousand tractors and 800 combines. (RM/Business World Magazine)