• Українською
  • To support Ukrainian agricultural sector, large-scale simplified lending is needed, – Mykola Solsky
    Ministry of Agrarian Policy and Food of Ukraine, posted 06 December 2022 10:52

    Currently, the main problem of the domestic agricultural sector is the minimum liquidity of agricultural products. The selling price of grain is quite low, logistics has become much more expensive, so farmers suffer significant losses. All these are the consequences caused by the military invasion. This was stated by Minister of Agrarian Policy and Food of Ukraine Mykola Solsky in his speech during a round table titled “Urgent needs of the Ukrainian agricultural sector for sustainability and recovery”.

    The event was organized with the support of the European Union and the World Bank. The meeting was attended by representatives of the Government, the Parliament, specialized associations of agricultural producers, community associations and international partners, who discussed the urgent needs of the Ukrainian agricultural sector, as well as the prospects for providing support to agricultural producers in 2023.

    According to Mykola Solsky, the problems of the agro-industrial complex are extremely acute and require urgent solutions.

    The Minister also spoke about a number of key factors that allowed to support the agricultural market this year.

    The first is the work of the grain corridor, which allowed to restore the export opportunities of the agricultural sector.

    The second is the simplification of farmers’ access to credit resources. The main collateral was grain and the state was providing a guarantee to a bank for a borrower.

    The third is the simplification of the procedure of grain export at all borders.

    The fourth is the implementation of a program of assistance to small agricultural producers, which was financed from the budget support of the European Union. Distribution of aid was carried out online only, through the State Agrarian Registry. Under the terms of the program, non-refundable assistance could be received by farmers who cultivate 1 to 120 hectares of agricultural land or keep 3 to 100 cows.

    Mykola Solsky also noted the assistance provided by international partners in grain storage. The program to provide farmers with grain storage sleeves was implemented jointly with the UN Food and Agriculture Organization (FAO) with the support of the governments of Japan and Canada. Under the program, in addition to the sleeves, farmers can receive a set of equipment for loading grain.

    The Minister also spoke about the ongoing program of non-refundable grants for creation of gardens and greenhouses based on the principle of co-financing. Mykola Solsky noted that, with the assistance of the World Bank, funding for the implementation of these programs next year has already been provided.

    In addition, the Minister expressed hope on the possibility of implementing a large-scale program of lending to farmers next year. He noted that simplified lending will provide farmers with the financial support necessary to prepare and conduct the sowing campaign. Currently, negotiations are underway.

    Besides, Mykola Solsky outlined the forecasts for the agricultural sector for the next season. In particular, he said, the area of corn sowing is expected to decrease. This is due to the high cost of nitrogen fertilizers, late harvesting of the current crop, and hence the impossibility of high-quality preparation of agricultural land for the next season. Instead, Ukrainian farmers will give more preference to sunflower and soybeans. There is a decrease in the area under wheat and barley crops. At the same time, rapeseed should keep last year’s figures.