Due to the war, export logistics has become significantly more expensive for Ukrainian farmers, while prices for agricultural products have fallen. Farmers are running out of working capital. This was stated by Denys Marchuk, the UAC Deputy Chairman on Channel 7.

According to him, legislative changes in the field of financing farmers could be a way out of the situation.

"Logistics routes are too expensive today. In some places, transportation of agricultural products takes 50% of its value. Also, the domestic price of grain is lower than the cost price. Even the price of sunflower is unprofitable. However, many farmers have relied on sowing oilseeds in the hope of reaching the cost price. Every month it becomes more difficult for farmers," emphasized Denys Marchuk.

His words were confirmed by Anatoliy Artemenko, Chairman of “Garant” agricultural enterprise in Odesa region. Although the situation in this southern region is better than in the eastern ones, he has to negotiate with suppliers to defer payments for seeds, fertilizers and plant protection products to develop his farm.

"This is the second year that we have been sowing and harvesting in the condition of a full-scale invasion. The first year was difficult, when exports were disrupted. The 5-7-9 financing program helped us. It allowed us to work without debts to suppliers, tax authorities and shareholders. Now we have adjusted to the new conditions. We have grain stocks in our warehouses and are waiting for the best price to sell it. We are waiting for news from our Armed Forces that exports from the Black Sea ports will be allowed on a permanent basis. Yes, it is difficult. But even in these conditions, we have managed to invest in irrigation and next year we will have 450 hectares under irrigation. I am grateful to the suppliers who understand our situation and postpone payments," said Anatoliy Artemenko, Chairman of “Garant” AE.

According to Alla Stoyanova, Director of the Department of Agrarian Policy, Food and Land Relations of the Odesa Regional State Administration, farmers in the frontline regions need the most attention, although farmers in Odesa region also have problems with working capital.

"Today, farmers' working capital is taking longer to be returned than it was before the full-scale invasion. Due to the difficulties in exporting the products, it takes longer to return the funds invested in the sowing and harvesting campaigns. The biggest difficulties with financing are faced by those farmers who are in the zone of hostilities. In addition to direct problems related to the war, banks refuse to provide loans to farmers in these areas. And suppliers won't deliver seeds and fertilizers even for money," said Alla Stoyanova.

"The way out of this situation could be loan limit increase according to the 5-7-9 lending program and amend the law on agricultural receipts," explained Denys Marchuk. "This would allow farmers to raise funds, grow products, sell them, pay off loans and interest on them, and attract foreign exchange earnings for the state"

"Today, the UAC pays a lot of attention to opportunities to attract additional financing to the agricultural sector. The 5-7-9 lending program is effective, but it is limited to a limit of UAH 90 million. Many agricultural producers have already exhausted this limit. That is why it is important to envisage raising the limit to UAH 130-140 million in the budget for 2024. Another important tool for raising funds could be the adoption of the draft law 9352 "On Agricultural Receipts". The innovations will allow farmers to raise funds under this financial instrument under the guarantee of the right to use leased land. In turn, this will make agrarian receipts attractive to lenders," said Denys Marchuk, adding that without stable export routes and financing, we will see a wave of farm closures.