The Ukrainian agricultural sector, especially in the frontline areas, is operating in unprecedented conditions. Shelling, drought, mined fields, and the risk of losing property complicate the work of farmers who continue to ensure the country's food security. Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), called on the government and the banking sector to provide more substantial support to producers by suspending loans for the temporarily occupied territories, increasing payments and guaranteeing access to finance, and bringing back the employee reservation program.

In the areas near the front line, many producers have lost crops and equipment. At the same time, the state support per hectare remains insufficient to cover the costs.

“Today's payments of UAH 2,000 per hectare do not take into account the increased risks and cost of resources. Farmers work in extreme conditions, risking not only their crops but also their lives. We see that many of them are not even able to accumulate their harvest because of the constant shelling. The government should review the payment rates so that producers can continue their activities,” emphasized Denys Marchuk.

The problem of the credit burden on farmers remains an urgent question. Many farmers took out loans before the full-scale invasion, but the loss of farms and crops made it impossible to repay their obligations.

“It's the third year of the war, and the problem of loans for farmers from the temporarily occupied territories has not been resolved. People who have lost their farms, equipment and crops are still left with obligations to banks. The Verkhovna Rada has registered a draft law to suspend these loans and 55 deputies supported it. However, it is important for us to adopt it before the end of the year so that farmers will feel real state protection starting from 2025,” emphasized the UAC Deputy Chairman.

Another serious problem is access to loans in the so-called “red zones” where banks are reluctant to provide financing due to high risks.

“Banks refuse to work with farms in the frontline regions because they assess the risks of collateral as too high. In this situation, the state should act as a guarantor, providing financial guarantees to banks. This will allow farmers to get loans even in difficult conditions,” added Denys Marchuk.

The issue of reservation of employees for military deferment remains one of the most painful for farmers. The process has been effectively suspended, making it difficult to plan and execute seasonal work.

“Since October, the reservation of employees for military deferment has been suspended, which creates serious problems for the agricultural business. We used to be able to reserve up to 50% of employees, which ensured the continuity of the production cycle. Agricultural work is a constant process, from planning the fall sowing season to harvesting. Today, farmers do not know whether their workers will be available at key moments of the sowing campaign, so we expect the government to issue a new resolution that will solve this problem,” the Deputy Chairman of the UAC said.

Denys Marchuk also emphasized the importance of extending the 5-7-9 soft loan program. This tool has helped many farmers to re-lend in the face of losses caused by the war. However, there is a risk that the program will end in March 2025.

“The 5-7-9 program has become a lifeline for many producers who have lost equipment, crops and resources. It allows them to re-lend and continue production even in difficult conditions. There is a possibility that the program will not be extended in 2025, so it is important to lay the base for its continuation now. In addition, it is necessary to increase the credit limit from UAH 90 million to UAH 150 million, as production costs have increased and the current funding levels no longer meet the realities,” he emphasized.

Supporting farmers in the frontline areas is not only an economic but also a strategic issue. These regions play an important role in ensuring Ukraine's food security, so their support should be a priority for the government.

“Our farmers demonstrate heroism and patriotism every day. They work for the good of the country, despite the risks to their lives. We must respond to them with real actions, not words, by suspending loans, increasing payments, returning reservations and providing access to financing,” summarized the Deputy Chairman of the UAC.