Support in demining, increasing lending limits under the 5-7-9 program, expanding the possibilities of agricultural receipts, and for farms in the de-occupied territories, state support per hectare and the lowest possible interest rates on loans should be introduced. These key areas of state support for the agricultural sector should be included in the budget for 2024. This issue was stated by Denys Marchuk, the UAC Deputy Chairman, on the air of the national telethon.
"The farms in the de-occupied territories and in the zones of hostilities are the most affected today. Their facilities have been destroyed as a result of hostilities, were looted, and fields were mined. At the same time, they can work: pay taxes and provide jobs. Therefore, the state should make sure that they can work. We believe that the budget for 2024 should provide funding for such farmers in the range of 3,000-4,000 UAH per hectare," Denys Marchuk said.
A reimbursement program for demining should be launched at the state level. According to the Kyiv School of Economics, the cost of demining 1 hectare is currently $3,000, which is an unaffordable amount for farmers.
"Today, our international partners provide us with about UAH 2 billion for demining. At the same time, this is very little compared to the cost of demining areas that are potentially contaminated with explosive devices. Reimbursement of demining costs would speed up the process. Interest rates on loans should also be reduced for farmers in the de-occupied territories. It is expected that it will be 1% per annum for the first two years after taking a loan, and then 3%," said Denys Marchuk.
The terms of state support for other farmers should also be expanded. For example, the limits under the state program "5-7-9" should be increased from UAH 90 million to UAH 130-140 million. And the possibilities of using agricultural receipts should be increased.
In order to increase the number of borrowers, it is necessary to give the right to issue loans under agrarian receipts against the right to lease land. This will allow farmers to attract additional financing outside of banks. This requires legislative changes. Draft Law No. 9352 has already been registered in the Parliament.
"In order for farmers to attract additional financing, it is necessary to change the legislation regarding agricultural receipts and allow farmers to pledge land lease rights. Before, the draft law No. 9352 "On creating conditions for raising funds for agricultural production" has already been registered in the Parliament. It will significantly increase the interest in agrarian receipts from suppliers of plant protection products, seeds, fertilizers and traders," added Denys Marchuk.
Tuesday, 17 October 2023