Extraordinary Genius - Chapter 374 – Supplying Farmers?
After Kirilenko walked out, Mozgov still wanted to drink with Feng Yu. Feng Yu only had one more mug of beer and used the excuse of having to discuss important matters, to stop drinking.
This was a good excuse. Mozgov could tell that the farmer issue, mentioned by Feng Yu, was critical to Kirilenko. Kirilenko and Feng Yu were the owners of companies. He as only working for them. He was also helpless when Feng Yu refuses to drink more. So, he just ate the dishes with Feng Yu.
Feng Yu was enjoying Russian cuisine. He loves Russian food.
When Kirilenko returns, Feng Yu was almost full and had started ordering desserts and fruits.
“Feng, I had made a few phones calls just now to the government officials at the borders. I had discussed with them about the things you told me, and they agree. As long as those farmers abided by the Russian laws, there should not be a problem!” Kirilenko said excitedly.
Feng Yu was helping him to solve the shortage of farmers issue. Then Russia’s agriculture industry will improve. After a few years’ time, Russians will realize that farming was profitable and they will start to farm. Then they would no longer need to rely on the Chinese.
Kirilenko was smart. This way, he could also help some politicians solve this issue, and in return, his business can operate better. He will have more support from the top.
Feng Yu was also happy to help him. He could help Longjiang solve the unemployed farmers’ issue and could still make some profits. Hmmm…… He could also help Zhang Ruiqiang and Uncle Wen gain some political credits.
Of course, Feng Yu would not only gain favors and friendships. He could also get profits from labor supply company and help the Machinery Company enter the Russian market.
“Brother Ki, I will set up a manpower supplying company when I am back. I will contact you after it is set up. The fields I wanted, must be good fields. The land must be flat and cannot be swampy or have hills.” Feng Yu made his requirements very clear. Longjiang province’s farmers were used to farm on flatlands and grow corns, soybeans, and wheat. Hills were not suitable for big farming machinery.
“You can rest assured. I promise that all the fields are good fields. There will still be some uncultivated land too. Your farmers can cultivate those lands if they want. The taxes will be very low.” Kirilenko said.
“Then how long can we rent the land? If it is only for 3 years, the farmers will not be attracted. After all, the farmers had to work away from their homes. I think Russians also do not like to work away from their homes.”
Kirilenko asked: “What about 4 years? 4 years should be sufficient for those farmers to earn some money. Our country is now trying to develop the agriculture industry. We cannot rent the land to you for too long.
4 years? Feng Yu sneered. The first year will be used to cultivate the land. The farmers will still be trying to adapt to their lives there, and they would not have any profits. The second year onwards, the farmers could see some profits. But if they were to buy tractors and other farming equipment, build houses, 4 years will not be sufficient.
If the farmers could not make any money, and Feng Yu still collects their money, then Feng Yu would not be considered helping China’s economy. He would be just earning from his fellow countrymen and making his fellow countrymen work for free!
The duration should be at least 5 years!
Feng Yu remembered that Russia’s agriculture industry starts to recover after Putin rose to power. Russian’s agriculture reform was initiated by Putin when he was the deputy president. Putin was in charge of Russia’s economic developments when Yeltsin was in power.
That would be 6 years later, and there was enough time for the Chinese farmers to make money.
“Brother Ki, I think that our contract should last until the year 2000. The longer the duration, the more focus the farmers will be. They would put in more effort, and their output will be higher. This way, your government will get more crops. We can also set a percentage of the farmers’ crops as taxes and rent. This would be a win-win situation for both the farmers and the government.”
This way, any changes in the prices of the crops will not affect the farmers.
“If we count this year, there will be 9 more years. It is too long. Those politicians will not agree. I can help you persuade the politicians to extend the duration to 5 years. This is the best I can do.” Kirilenko said.
“Brother Ki, I am guessing that after a few years, those officials will take back the land? Although this is good for Russia, I dare to say that your Russian farmers will not be able to make any money. It is not easy to be a good farmer. My family also have a farm. I know more about farming than you. For example, if I ask Mozgov and you to be farmers, are you confident that you can make money?”
Kirilenko and Mozgov looked at each other and knew the answer.
Kirilenko was thinking in his heart. That means after 9 years, the fields were returned to Russia, their farmers will still be clueless about farming.
They still must rely on the Chinese farmers after this duration.
“Brother Ki, it is not up to us to discuss this. I can help you hire farmers from Longjiang province. Why not let the Longjiang government officials discuss with the Russian Officials? We can introduce both parties, and they will still owe us favors.”
Those government officials might be able to get better conditions from the other parties if they sit down and discuss. Furthermore, both Feng Yu and Kirilenko does not want their friendship to sour because of this.
Kirilenko thought for a while and nodded. He only wanted favors from the politician. He was also not interested in this land rental business. How much can this business earn?
Kirilenko had not calculated the profits from this business. There were a lot of profits. If 10,000 hectares of land were to be rented, the yearly profits would be at least a few million. If it were 100,000 hectares, it would be a few hundred million. But the initial investment will be a lot.
Feng Yu could also collect the rental from the farmers upfront and use the money to invest. If the farmers do not have money, they can get a loan from the back. Feng Yu can even be their guarantor.
“Feng, you have helped me again. Cheers!”
Feng Yu raised his half-filled beer mug and knocked on Kirilenko’s full glass of vodka. Without saying a word, Feng Yu chug down his beer. Kirilenko looked at Feng Yu and saw Feng Yu staring at his glass of vodka. Kirilenko had no choice but to finish his drink. He was not as shameless as Feng Yu……