The Ministry of Economy has developed a financing guide for Ukrainian agrarians
The Ministry of Economy, Environment, and Agriculture of Ukraine has published a practical guide for the agricultural sector titled “Matrix of Available Financial Resources.” This document contains organized information about all the main opportunities for attracting financing to support and develop agricultural producers, allowing for a quick orientation in various support programs and a pathway from identifying needs to obtaining funds.
This is reported by AgroReview
State Support and Grant Programs for Agrarians
The new guide highlights three key sources of financing for agricultural enterprises. The most extensive direction is state support, which encompasses a wide range of programs from the state budget – from basic subsidies to investment grants and various compensations. In particular, agrarians can receive subsidies for livestock maintenance ranging from 2,000 to 7,000 hryvnias per head, as well as partial reimbursement of costs for the construction or reconstruction of farms at a rate of 25–50%.
A separate block consists of grant programs: up to 16 million hryvnias for the development of the processing industry, up to 10 million hryvnias for planting orchards, up to 7 million hryvnias for greenhouse construction, and up to 20 million hryvnias for creating vegetable storage facilities. Many programs involve co-financing, and improved conditions with a higher percentage of cost coverage apply to enterprises in frontline areas.
“We have systematized all available financing opportunities for agrarians in one tool so that every producer – regardless of the scale of their farm – can quickly find the optimal solution for development, recovery, or scaling of their business,” notes Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
Particular attention in the guide is paid to supporting frontline regions. Compensation mechanisms are available for them: reimbursement of up to 100% of the cost of land demining, up to 60% of insurance premiums, as well as compensation for lost crops and damaged property. An important tool remains the program “Affordable Loans 5-7-9%”, which provides the opportunity to attract preferential loans through banks with state support.
International and Banking Support for the Agricultural Sector
The second important direction is attracting financing from international financial organizations and donor programs. They offer both grants and mixed financial assistance, often in partnership with banks. Among the opportunities are Mercy Corps grants for farm recovery with funding ranging from a few thousand to 150 thousand dollars, EBRD programs to support enterprise activities and reimburse consulting services, Canadian government initiatives to support women in the agricultural sector, as well as UNIDO programs to improve product quality.
Some international initiatives aim to raise safety standards, support exports, and restore processing capacities. Moreover, they often include training, consulting, and technical assistance.
The third direction is banking financing, which complements state and international programs. Banks offer loans for replenishing working capital, financing the sowing campaign, updating equipment, purchasing machinery, and implementing investment projects. Partnership programs with resource suppliers and financial leasing are also common.
The “Matrix of Available Financial Resources” allows agrarians to comprehensively assess all possible sources of financing and choose the optimal combination of tools depending on the needs of the farm, the scale of operations, and the region of work.