The high art of planting a garden։ what, why, how

In the first half of 2022, the economic activity indicator increased by 11.8% compared to the same period last year. During the same period, agriculture decreased by 5.5% and exports decreased by 10,000 tons.

Farmers say that the reason is not only in the late spring and developments in the main consumer market, in Russia, but also in the financial component. Only imported fertilizers have risen in price by up to 80 percent over the past year.

According to one of the Armavir farmers, an intensive walnut orchard planted three years ago gave its first harvest this year. If there is no force majeure, they will reach self-sufficiency in two years, after they will receive income. From one hectare of the garden, you can get up to 5 tons of dry nuts, which is a good result for Armenia. In the meantime, it remains to tighten the belts and invest.

Farmers in all regions of Armenia face the same problems. many of them remain unresolved for decades. In particular, there are no centers for the wholesale sale of agricultural crops, a number of regions still have an agricultural insurance program, the debit of groundwater is declining, and the issue of land consolidation has not yet been resolved. When starting a garden, a potential farmer prefers not to consult with a specialist, but to get information on the Internet. As a result, tree species with high yields are often chosen, but not adapted to the climatic and geographical conditions of Armenia and ... fail.

But be that as it may, the acquisition of financial resources is the most important of these problems, because at least it allows you to solve the problem with the drip irrigation system, anti-hail networks, reducing the possibility of climate-related damage.

According to professional estimates, it takes up to $12,000 to create one hectare of a garden in Armenia. After the establishment, annual expenses can reach 2-3 million drams.

With the exception of some large investment projects, farms are created mainly at the expense of credit resources. What financial institutions offer, how to navigate?

No matter how ridiculous it may sound, but the interest rate should not always be considered as the main selection criteria the difference in interest rates and maturities is small. And if we are talking about programs subsidized by the state, then the terms of lending are the same. In this regard, it must be remembered that the principal amount of the loan is given not by the state, but by a financial institution, the agreement indicates the rate of lending to the village of this structure, say, 15%. Another clause stipulates that you pay at the rate set by the government program, say 5%. The remaining 10 percent is compensated by the state.

Banking system experts note: if the differences in the interest rate and term are insignificant, make a choice based on the possibility of obtaining additional benefits. from flexibility, from the availability of a grace period for repayment, from the ability to repay interest not proportionally monthly, but according to a schedule convenient for you, use banking products on preferential terms or arrange refinancing.

Another opportunity offered by some structures is advice and support throughout the entire lending process.

Converse Bank provides agricultural lending both within the framework of government programs and offers its own products, offering its customers a flexible approach, competitive financing and additional opportunities, regardless of the type of loan.

The bank is controlled by the Central Bank.