Agricultural commodity producers lack financial resources for the autumn harvesting and sowing campaign, as well as for operational activities in animal husbandry.

The Ukrainian Agri Council as part of the Ukrainian Agri Forum appealed to Prime Minister of Ukraine Denys Shmyhal, the Ministry of Finance of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine with a request to support Ukrainian farmers and consider the possibility of providing them with cheap credit resources.

Despite the extremely difficult conditions, working sometimes even under fire, and lack of sufficient working capital, Ukrainian farmers sowed more than 80% of the planned areas this spring. The successful implementation of the spring sowing campaign took place thanks to the coordinated work of business and local authorities, as well as significant assistance from the Government, in particular, the provision of an opportunity for the agricultural producer to obtain loans from banks under state guarantees (80%) with a preferential rate of 0% per annum.

"Understanding his role in ensuring food security not only in Ukraine, but also in the world, a Ukrainian farmer invested all available financial resources to spring sowing and current harvesting campaign, hoping to sell his harvest last year as soon as possible and, thus, replenish his own working capital and fulfill their obligations to banks. However, due to the blockade of sea ports and the high costs of logistics by alternative routes (transportation costs are more than 60% of the price), the export volume of Ukrainian agri-food products is insignificant compared to the pre-war period. A farmer is forced to sell last year's harvest at extremely low prices, which in some cases is lower than its cost price. And in some cases, these funds are not enough even for the harvesting of early grain," is mentioned in the appeal.

In the coming months, agricultural producers must find financial resources for the autumn harvesting and sowing campaign, as well as for the repayment of previously taken loans, which is impossible in the current conditions.

The situation is similar at animal husbandry. As a result of military operations, many livestock complexes have been destroyed and livestock lost, and in some cases, farmers are forced to purposefully reduce livestock due to lack of funds for operational activities. These indicators are increased every day.

Thus, all participants of the agricultural production process are currently on the verge of survival due to a lack of financial resources, which endangers the further conduct of agricultural business in Ukraine.

The leading public associations of the agricultural sector of Ukraine offer:

• to extend the period of providing credit resources under state guarantees until the end of autumn;
• to extend current credit agreements at preferential rates;
• to double (up to UAH120 million) the maximum limit for loans, which is a subject of a reduction in price, so that those who have already received a loan and have not yet been able to sell their products continue their activities.