During a meeting with the President Volodymyr Zelenskyi, Alla Stoianova, a member of UAC board from Odesa region, explained the extremely critical situation in the southern districts of Odesa region due to the drought, which has lasted for two years in a row, and the need for state support. The participant of UAC noted that the state program "Affordable loans 5-7-9%", unfortunately is unattainable for them.

They are used by the whole of Ukraine, but not us. Farmers in the south of Odessa region are in negative accounts for the third year in a row. Moreover, when the bank takes our credit history and sees a "minus" at the end of the year, of course we are denied. We had a meeting at the level of the head of the region with farmers and banks’ representatives. The banks are ready to lend, but not ready to take risks. Therefore, we really need the support of the state. In addition, what is very important - right now, when it is necessary to sow the fields again. The President promised to look into the matter," Alla Stoianova said.

The participant of UAC gave to the President farmers’ statement with the detailed description of a situation and losses of farmers.

This week, President of Ukraine Volodymyr Zelenskyi explained this situation during a conference and mentioned that he expected proposals from the Minister of Economic Development, Trade and Agriculture to help farmers and agrarians who suffered because of the draught now, but not only in the future.

UAC has repeatedly explained that there are mechanisms for compensation for farmers:

The Government, by amending its resolution of February 8, 2017 № 77, may redistribute the funds of the budget program “Financial support for agricultural producers”, for which 4 billion UAH has been allocated. 1.2 billion UAH is provided for one of the directions of this program - "Financial support of measures in the agro-industrial complex by reducing the cost of loans". These funds are intended to compensate for interest on loans that farmers will take to buy agricultural land. However, the launch of the land market instead of October 2020 should take place only in July 2021. Part of the funds in this area can be used to compensate for losses to farmers suffered because of the drought.

Funds for agricultural producers can also be allocated from the reserve fund of the budget. The terms of use of such funds provide for their return. However, due to amendments to paragraph 11 of the Procedure for the use of the reserve fund of the budget, it is possible to provide for the allocation of funds on a non-refundable basis to economic entities. In particular, in the situation of a threat to Ukraine's food security caused by the consequences of natural emergencies.

UAC calls on the Ministry of Economic Development, the Government and the Parliament to use both proposed mechanisms for allocating funds!

Wednesday, 16 September 2020

 

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