The Ukrainian Agri Council appealed to Prime Minister of Ukraine Denys Shmyhal, First Vice Prime Minister of Ukraine - Minister of Economy of Ukraine Yulia Svyrydenko and Minister of Agrarian Policy and Food of Ukraine Mykola Solskyi with a request to extend the state program of preferential lending "5-7-9" for agricultural producers for 2024.

The UAC noted that the agricultural sector is currently in a critical situation. According to preliminary estimates, the losses of the crop production industry this year amount to at least USD3 billion, and most of the enterprises have real risks of bankruptcy. This has been driven by a radical increase in the cost of export logistics due to military risks in the Black Sea, as well as constant disruptions in exports across western borders. The increase in production costs was also driven up by higher prices for fuel, agrochemicals, and spare parts.

At the same time, one of the most popular state support programs among farmers, the 5-7-9 concessional loan program, will expire for farmers (except for the affected regions) on March 31, 2024.

CMU Resolution No. 28 of January 24, 2020 "On Provision of Financial State Support" stipulates that the maximum term of loans for financing agricultural producers under which state support is provided should not exceed the period until March 31, 2024.

"Under the current conditions, the only effective and widespread instrument of the state support for the agricultural sector is concessional lending to agricultural producers under the 5-7-9 program. However, the area of such support as financing for farmers will expire on March 31, 2024. It is by this date that the maximum term of lending to agricultural producers under the 5-7-9 program is determined," is mentioned in the statement.

The UAC urged the Cabinet of Ministers to extend the maximum lending period for preferential loans which are provided to agricultural producers for agricultural activities for at least one more year - until March 31, 2025.

"Such an initiative will help to preserve the industry and ensure the next sowing season is carried out smoothly," the UAC noted.

Such changes should be adopted as soon as possible so that from the beginning of the next year, farmers will be able to receive loans for the sowing season, with the term of such loans not for several months (until March 2024), but for the period until March 31, 2025.