The government offsets the credit rate and provides government guarantees for loans to farmers for sowing

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Small and medium agricultural producers with a turnover of up to 20 million euros per year during martial law will be able to benefit from an interest-free loan for six months of up to 50 million UAH as part of a government guarantee of 80% of its sum to secure the sowing campaign.

“The government has unanimously supported the introduction of a government guarantee mechanism for these agricultural producers.” A resolution on amendments to some laws of the Cabinet of Ministers of Ukraine on providing credit support to agricultural producers has been adopted, the Ministry of Agrarian Policy announced on Sunday.

According to the ministry, the state fully compensates the interest rate of these loans.

According to the calculations of the Ministry of Agrarian Policy, these are agricultural enterprises that cultivate up to 10,000 hectares.

The ministry said that to receive a loan, a business entity must be an agricultural producer as defined in the Law on State Support to Agriculture of Ukraine.

“Applicants should apply to the financial institution where they were served,” the Ministry of Agrarian Policy said.

As Minister Roman Leschenko said, in the spring farmers always need additional funds for the sowing season, and after the start of the war the problem worsened due to the inability to sell the last year’s export crop, because the entire port infrastructure of the country was blocked by the aggressor.

According to the Ministry of Agrarian Policy, the total need for funds for the sowing campaign is about 100 billion UAH.

The ministry recalled that in order to provide agricultural producers with seeds for sowing in Ukraine during martial law, additional procedures for the certification of seed material were canceled and the use of agricultural machinery without their registration was allowed.

Furthermore, the agrarian platform of the Ministry of Agrarian Policy has been launched to collect the actual needs of farmers for sowing in real time https://agrostatus.org and an online platform has been created to improve the logistics routes of farmers under martial law https://prodsafety.org.

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