10:09 14.03.2022

Govt to compensate credit rate, give govt guarantees for loans to farmers for sowing

2 min read

Small and medium-sized agricultural producers with a turnover of up to EUR 20 million per year during martial law will be able to receive an interest-free loan for six months in the amount of up to UAH 50 million under a government guarantee of 80% of its sum to secure the sowing campaign.

"The government unanimously supported the introduction of a mechanism for providing government guarantees to such agricultural producers." A resolution on amendments to certain acts of the Cabinet of Ministers of Ukraine on providing credit support to agricultural producers was adopted, the Ministry of Agrarian Policy said on Sunday.

According to the ministry, the state fully compensates the interest rate on such loans.

According to the calculations of the Ministry of Agrarian Policy, it is about agricultural companies that cultivate up to 10,000 hectares.

The ministry said that to receive a loan, a business entity shall be an agricultural producer in the meaning given in the law on state support for agriculture of Ukraine.

"Applicants need to apply to the financial institution where they were serviced," the Ministry of Agrarian Policy said.

As Minister Roman Leschenko said, in the spring, farmers always need additional funding for the sowing season, and after the start of the war, the problem worsened due to the impossibility of selling last year's crop for export, since the entire port infrastructure of the country was blocked by the aggressor.

According to the Ministry of Agrarian Policy, the total need for funds for the sowing campaign is about UAH 100 billion.

The ministry recalled that to provide agricultural producers with seeds for sowing in Ukraine during martial law, additional procedures for certification of seed material were canceled and the operation of agricultural machines without their registration was allowed.

In addition, the agrarian platform of the Ministry of Agrarian Policy was launched to collect the actual needs of farmers for sowing in real time https://agrostatus.org and an online platform was created to improve the logistics routes of farmers under martial law https://prodsafety.org.