Ukraine asks EU for hundreds of millions of euros for affordable loans for farmers

The Ministry of Agrarian Policy and Food of Ukraine has appealed to the European Commission with a request to consider allocating €220 million in non-repayable support. The money is needed to compensate interest on loans for small and medium-sized agricultural producers.

The funding is proposed to be channeled through the state program "Affordable loans 5-7-9%". According to the ministry's calculations, the EU contribution will allow to form a loan portfolio of up to €4 billion, and the final rate for farmers will not exceed 10% per annum.

The assistance is intended to ensure liquidity for enterprises that, due to Russian attacks and the blocking of the Greater Odesa ports, have lost the ability to export products unhindered.

"Thousands of Ukrainian farmers cannot sell the already grown crops and obtain funds to continue operations. The compensation of loan interest will allow farmers to maintain liquidity, conduct the autumn sowing campaign, and avoid the forced sale of products at reduced prices", - said Minister of Agrarian Policy and Food Taras Vysotskyi.

In the 2026/2027 marketing year, Ukraine expects to export about 64.4 million tons of agricultural products. Due to prolonged restrictions on the operation of seaports, the export volume may decrease almost by half - to 29.6 million tons.

The biggest risks concern wheat: its exports could fall from 17.6 million to 8.3 million tons. The ministry also forecasts that as early as October, the effective storage capacities for the harvest could be fully occupied, and by November, over 9 million tons of grain, oilseeds and meal will be left without the necessary warehouse capacities.

According to estimates by the Ministry of Agrarian Policy, during the marketing year, the agri-sector will receive approximately €6.4 billion in cash receipts with operating costs of €11.2 billion. By November, about €10.8 billion worth of products could be accumulated in unsold stocks, while the minimum working capital requirement for the industry will be around €4 billion.

The credit support will be available to small and medium-sized agricultural producers that meet the program conditions and the criteria of environmental and social responsibility. The loans can be used to pay salaries, rent land, store and process the harvest, and prepare for the sowing campaign.

Earlier, the Cabinet of Ministers expanded the "5-7-9%" program to support farmers. Meanwhile, industry representatives warned that port blockages have collapsed domestic grain prices and created the threat of a wave of bankruptcies.

Based on materials from: Ministry of Agrarian Policy and Food of Ukraine