Seed subsidy – subsidy given for the sale of certified 1st and 2nd reproduction seeds and seedlings produced in the country;
The seed subsidy is determined by applying coefficients to the base amount for each kilogram of certified 1st and 2nd reproduction seeds produced and sold in the country, and for each number of seedlings. The amount of seeds and seedlings sold to the farmer in the calculation of the seed subsidy is determined according to the need for sowing or planting, which is calculated according to the land area used. Forecasts on areas and quantities of seed and seedling production are entered into SIS by June 1, information and documents on sale of seeds and seedling by December 10 and approved by AKIA.
Uncle Mammad produces 1st reproduction wheat seeds in a 4 ha seed farm in Meyniman village of Hajigabul district. What should he do to get seed subsidy?
Uncle Mammad applies for subsidy through SIS. The seed rate for wheat is 0.0004, the quota for wheat seed is 9000 tons. Planting needs equal to 220 kg for 1 ha. The amount of seeds produced by Uncle Mammad from 4 ha and sold to 20 people for 50 ha of arable land is 12 tons.
Calculation of seed subsidy:
0.0004 x 200 = 0.08 AZN for 1 kg or 80 AZN for 1 ton
Uncle Mammad can provide only 11 tons (50 x 220 kg) for 50 ha for seed subsidy.
A total of 10,000 tons of 1st reproduction wheat seeds were submitted to the seed subsidy.
Uncle Mammad will receive a seed subsidy of 80 x 11 x 9000 /10000 = 792 AZN.