"It was only last April that we visited another new pig breeding facility in the Leningrad Region. This project in the Pskov Region is also quite impressive. An entirely new facility has been built from the ground up. I see that the staff is optimistic as well. The new farm has created 2,000 jobs and intends to provide housing for its workers. The investor's plans for the future are so far-reaching and ambitious as to take your breath away. It's a good thing that large projects such as these are being implemented in Russia's northwest, including the Pskov Region. The government supports and will always support such investors" Mr Zubkov emphasised.

The first deputy prime minister pointed out the importance for large pig breeding facilities to observe strict veterinary requirements, considering the threat involved with the spread of the African swine fever virus. Local production of fodder will help in complying with safety requirements.

The Pskov Region farm is the largest pig facility in northwestern Russia, with a capacity of 480,000 pigs. In the future, the number of animals may be increased to one million. Investment in the project totalled 14 billion roubles, with one-third of that amount consisting of the investor's own money. "Thirty percent is a good contribution," Zubkov said.

Zubkov also went to Velikiye Luki where he visited the State Agricultural Academy, examined its social infrastructure and research labs and spoke with students. While answering one of their questions, Zubkov called upon the young people to take rural jobs. "It's better to work in production than to be office clerks in the city, shuffling a bunch of papers around," Zubkov said. "I have never regretted working in agriculture for so many years," he added.

The first deputy prime minister went into detail about the government's policies to support young people living and working in rural areas, adding that all of the support programmes will continue. "This year alone, 1.2 million square metres of housing will be commissioned in rural areas," he said. "It is especially important that regional authorities take part in these programmes."

During his meeting with the students, Zubkov also mentioned that government support has helped Russian rural workers overcome the consequences of the financial and economic crisis and the drought of 2009-2010. According to him, this year's net grain harvest will reach 92-93 million tonnes, while the gross sugar beet harvest is expected to reach a record high of 48 million tonnes. This amount will be processed into 5.2-5.5 million tonnes of beet sugar, meaning Russia will not have to import raw sugar this year.

Mr Zubkov continued the discussion of the future development of Russian agriculture at a meeting with agricultural producers in the Pskov Region. He noted the encouraging results in national agriculture from January-September 2011. "With the government's support, Russian agricultural producers have managed to overcome the consequences of the economic and financial crisis and the drought of 2009-2010. They have shown positive results in most market segments, including grain, potatoes, soybeans and vegetables," he said.

According to Zubkov, financial assistance provided under the 2008-2011 state programme has increased the financing of national agriculture by over 50% of the planned amount. "A total of 635.5 billion roubles have been provided, up from the 421.3 billion roubles that was planned. This is a great deal," Zubkov noted.

He emphasised that the government intends to continue all of the current support measures next year. As in previous years, 3.5 billion roubles will be allocated for development in livestock-breeding. Investment loan subsidies will grow by 7 billion roubles to reach 52.5 billion roubles. Small farms will receive 6.3 billion roubles in assistance, an increase of 400 million roubles from 2010.

In 2012, the government will maintain the discount on fuel and lubricants for agricultural producers, Zubkov said. "We will absolutely keep this going," he assured his audience. This policy was first introduced in 2009. The discount has been as high as 30% in some of the regions. Farms have been able to purchase 2.7 million tonnes of fuel at a discounted rate, cutting production costs by about 10 billion roubles, Zubkov added.

He also praised the regional government's contribution to local agricultural development: "The Pskov Region has received 700-800 million roubles in state support since 2008, but it also provides co-financing of more than 20%, effectively channelling over one billion into the sector. The results in the region have been good. During the first nine months of 2011, the regional agriculture grew 17% year on year. Local pig farming showed a record growth of 18.5%. It is important to continue building a procurement infrastructure in the dairy segment as well, and the regional government is working on this now: a chain of milk purchasing offices has been set up. This helps involve individual farmers and small businesses who produce raw milk in marketable foods production, and it improves the quality of the product and raises the purchasing price of milk. This policy will eventually make milk farming more profitable. These improvements are being achieved through the coordinated efforts of the regional government, the governor and his team, farmers, investors and businesses.

"The region's government is also successfully working to address the problem of attracting young professionals to work in agriculture. We have just examined a new building of the local agrarian university, which is outfitted with modern equipment and provides many opportunities for developing practical new skills. We have spoken with students who said they would be willing to live and work in rural areas. But we must continue to support them. We will work to further raise their living standards and improve the quality of life in rural areas and their living conditions, speed up connection to household gas distribution grids, and to build roads, schools and hospitals. The federal government has already provided substantial allocations towards these purposes. We will increase federal financing under our new state programme for social development of rural areas. The Social Development Programme will be expanded, so it is essential that the regional authorities recongnise its importance and provide co-financing for this programme.

"The Pskov Region has successfully implemented several large development projects. This is a good start to a lot of work.

"On the whole, people seem very optimistic. It has been many years since the region has supported agricultural development. Things changed three years ago when the new governor took over.

"Rosselkhozbank and Rosagroleasing, the two main development institutions in national agriculture, are actively involved in this work. A recent agreement between the Pskov Region and Rosagroleasing will enable local agribusinesses to take full advantage of the leasing company's potential to buy machinery and equipment and to develop animal husbandry.

"I believe that this meeting will give a fresh impetus to the development of the Pskov Region's agriculture and the regional economy as a whole," Viktor Zubkov said.