Lending to agricultural producers at the beginning of the year plays a significant role in the production of gross agricultural output.
"The result of the whole season of agricultural work depends on how well we will be able to organize spring field work ",- said Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko.
The Minister stressed that in the spring farmers always need additional funding for the sowing period. In addition, today agricultural producers do not have the opportunity to sell last year's harvest for export because the entire port infrastructure of the country is blocked by the aggressor. As a result, today farmers have a crisis of liquidity of working capital for agricultural activities.
They faced the urgent issue of attracting other sources of funding, primarily for spring field work. According to the Ministry of Agrarian Policy and Food of Ukraine, the total need for funds for such works is about 100 billion hryvnias.
Therefore, the Ministry of Agrarian Policy and Food of Ukraine initiated the resolution and the Government unanimously supported the introduction of a mechanism for providing state guarantees to such agricultural producers, - the Resolution of the Cabinet of Ministers of Ukraine "On Amendments to Certain Acts of the Cabinet of Ministers of Ukraine on Provision of Credit Support to Agricultural Producers" was adopted.
What support will the state provide for farmers in 2022:
- Exclusively small and medium-sized agricultural producers with a turnover of no more than 20 million euros per year, which is the equivalent of an enterprise that cultivates up to 10,000 hectares.
- Compensation of interest rate on borrowed loans.
- The maximum amount of the loan to which the interest rate compensation applies is UAH 50 million.
- Lending is provided for agricultural activities (sowing) for the period of martial law.
- In order to receive a loan, a business entity must also be an agricultural producer in the meaning given in the Law of Ukraine "On State Support of Agriculture of Ukraine".
- The loan is valid for 6 months.
- The maximum amount of the state guarantee for portfolio loans up to 80% has been set.
Applicants must contact the financial institution where they were served!
The Ministry of Agrarian Policy and Food of Ukraine is doing everything possible to simplify procedures and facilitate the sowing campaign:
- in order to provide agricultural producers with seeds for sowing in Ukraine, additional procedures for certification of seed material have been abolished during martial law;
- operation of agricultural machinery is allowed without their registration for the period of martial law
- in order to provide agricultural producers with seeds for sowing in Ukraine, additional procedures for certification of seed material have been abolished during martial law https://agrostatus.org;
- operation of agricultural machinery is allowed without their registration for the period of martial law https://prodsafety.org.