The Food and Agriculture Organization of the United Nations (FAO) has announced the start of accepting applications for the second cycle of a grant program implemented with financial support from the European Union (EU) to restore Ukrainian micro- and small-scale farming.

This strategic initiative aims to support the recovery of Ukrainian farmers facing challenges caused by the impact of war on agribusiness. The goal is to support production, improve efficiency and profitability, and in the long term strengthen national value and supply chains.

Farmers from Lviv, Zakarpattia, Ivano-Frankivsk and Chernivtsi regions will be able to take part in the second cycle of the grant program. Grant recipients will be required to contribute a certain percentage of the total costs. However, the amount they cover will differ depending on the selected value chain - appellation of origin or protected geographical indication.

Grants will be paid in hryvnia (UAH) at the UN exchange rate in amounts up to $10,000 for small agricultural producers and $25,000 for agricultural micro and small enterprises, agricultural cooperatives and associations of producers of products with geographical indications.

Applications are accepted through the State Agrarian Register (SAR) until January 31, 2024.

Christian Ben Hell, Head of the Agriculture Sector at the EU Delegation to Ukraine, explained that the EU-funded grant program is designed to help agricultural producers integrate into sustainable value chains, improve their livelihoods, increase employment and rural development.

According to the head of FAO in Ukraine, Pierre Vauthier, the first grant cycle demonstrated great interest in the project among representatives of the agricultural sector, who are forced to work in an environment characterized by multiple, complex and partial shocks for agribusiness due to the full-scale war unleashed by the Russian Federation against Ukraine.

According to FAO, this initiative showed good results in the first cycle, during which 138 of the 212 applications received by the State Agrarian Register were selected. The total amount of grant support was $1.73 million. The most popular investments were the purchase of tractors, solar panels, specialized production and processing equipment for the corresponding value chain.