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Record harvest ruins farmers in Russia

Russia is expected to have a record grain harvest, but farmers are facing bankruptcy due to market oversaturation and low prices. Expenses for fertilizers and equipment maintenance have increased, while grain prices have fallen. Farmers are considering storing the grain in barns, but not everyone can afford to do so. Restrictions on grain export abroad are still in place.

31 December 2022 31 December 2022

A record grain harvest is expected in Russia, but it threatens farmers with ruin. According to the forecasts of the Ministry of Agriculture, the grain harvest may reach 130 million tons. By August 7, farmers have already harvested 55 million tons. The Saratov region is also talking about unprecedented indicators.

“This is a very serious crop. I think that the Saratov region this year will overtake all the regions in terms of grain harvest. I am sure of this, because in my 31 years there has not been such a crop of only a peasant farm, this is from 50-60 centners of a hectare, ”comments Alexander Zharikov, a farmer from the village of Nevezhkino, Saratov Region.

He recalls that last year the yield of winter crops did not exceed 12 centners per hectare. In this same year, the weather was ideal for all grain crops, everything grew: both spring and winter crops. However, after the harvest, Russian farmers risk being left with nothing because of the oversaturation of the domestic market, prices have collapsed.

On the contrary, the costs of farmers have increased. Contrary to official information, fertilizers have risen in price; doubled and the price tag for the maintenance of equipment. Farmer Zharikov sees one way out of the situation - not to sell cheaper grain, but to put it in barns.

Fortunately, in the past “fat” years, an experienced farmer prepared himself and built storage facilities for himself. In the meantime, it remains to focus on other cultures. But far from all farms can afford to "hold back" the harvest, and farmers are forced to work without profit, while world grain prices are breaking all records - it reaches $500 per ton. But farmers will not see this money: on March 15, 2022, the Russian authorities banned the sale of grain abroad.

The restrictions did not affect only a few companies. And although the ban was lifted on June 30, Russian farmers have no real opportunity to sell surplus crops abroad.

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