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Direct financing of small and medium farms

published 28 June 2022 11:30

Currently approved support: 

Negotiations with the EU side on this issues are currently under way. It is expected that EU countries will contribute EUR 50 million (approximately USD 53,8 million) for this needs.

Description and Calculations

In Ukraine there are more than 25 thousand farmers covering land bank up to 100 hectares. In total, these farmers cultivate more than 800,000 hectares throughout Ukraine. They play highly important role ensuring food security in rural areas. Unfortunately, due to russia's military aggression they have lost financial and market liquidity, as commodity crediting has been suspended. Sales of products have become much more difficult due to the blockade of seaports. And Ukrainian banks are unable to offer affordable loans this year.

Small and medium-size farmers need funds to pay for resources and for services associated with food produce and support agricultural activities.

Taking into account of aforementioned, we appeal to you to allocate funding and means of production in the following areas:

  • to support the operational activities of small farmers (up to 100 hectares), which according to the current estimate of the Ministry cultivate more than 800 thousand hectares, by providing unconditional payments per hectare, allocating $ 172,8 million at a rate of $ 216 dollars per 1 hectare. The allocation of these funds is due to limited credit capacity; mainly rental land use; expenditure on inputs for rent (landlords are usually households, i.e. rural population) and agrochemicals; potential loss of income per hectare as well as lack of working capital;
  • to allocate $ 108 million at the rate of $ 540 per cow for owners of livestock from 3 to 50 cows for conservation cattle and support biodiversity. The estimated livestock coverage in this area will be 200,000 cows.

Negotiations with the EU side on this issues are currently under way. It is expected that EU countries will contribute EUR 50 million (approximately USD 53,8 million) for this needs.



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