Russian grain farmers are poised to increase winter grain plantings – but more in hope of lifting production rather than expectation, a US report has said.

The belief of many analysts that farmers would be discouraged by financial constraints from raising sowings, with grain prices down more than 30% since June, may be misplaced.

A rise in winter sowings by late September, with 11.5 hectares planted compared with 9.1m a year before, and 7.5m hectares in 2007, may reflect raised ambitions as well as faster progress, a report from US Department of Agriculture staff in Moscow said.

"The Russian reality is that many farmers' decisions are driven by [the] necessity to survive and by [the] absence of alternative occupations," the briefing said.

"Thus farmers may once again increase winter grain sown area."

Machinery market slump

While a rise in sowings is in accord with Russian plans to hike grain production, the chances of raised plantings being matched in rising production looked slim, the report signalled.

"It is likely that many [farmers] will not have access to improved seeds, chemicals and fertilizers or new equipment," the report said.

"Bankers report that in 2009, farmers' purchases of new machines dropped by 75%."

The report comes as CNH, the maker of Case and New Holland equipment, finalises a manufacturing and distribution deal in Russia with local truckmaker, Kamaz, while Deere & Co continues plans to build a tractor factory near Moscow.