The Government of Ukraine has expanded farmers' access to financial support under the program "Affordable Loans 5-7-9%", allowing agricultural producers specializing in vegetable growing to receive compensation for the interest rate on loans for the construction of vegetable storage facilities and potato storage facilities. The relevant resolution, developed by the Ministry of Agrarian Policy and Food, was approved by the Cabinet of Ministers.
Minister of Agrarian Policy Vitaly Koval announced the changes in the program, emphasizing the importance of expanding support specifically for vegetable producers, who were previously outside the scope of state compensation. Now farmers will be able to receive up to 150 million hryvnia in assistance in the form of interest coverage on bank loans taken out for the construction of modern storage facilities.
Until now, only representatives of the livestock industry or enterprises engaged in the processing of agricultural products could receive such compensation. The expansion of the program’s beneficiaries was a response to the acute challenges faced by the agricultural sector during the war, in particular due to the loss or destruction of a large part of the infrastructure.
According to government estimates, Ukraine currently has a critical shortage of vegetable storage facilities — the shortage reaches approximately 60% of the needs. The total volume of new storage facilities needed to preserve the harvest is estimated at over 340 thousand tons. This imbalance poses a threat not only to the economy of farms, but also to food stability in the domestic market.
The initiative is aimed at improving logistics, preserving the harvest and reducing seasonal product losses. The availability of adequate storage facilities for vegetables and potatoes will allow farmers to manage supplies more effectively, avoid dumping during the harvest period and maintain stable prices in the off-season.
In addition, strengthening the storage infrastructure directly affects the country’s food security. Preservation of strategic reserves of products and support for small and medium-sized farming create the basis for the development of agricultural potential in war conditions and the further restoration of Ukraine.
e-finance.com.ua