The Ministry of Economy, Environment and Agriculture of Ukraine has prepared a practical guide for farmers – “Matrix of Available Financial Resources”. It systematizes all key opportunities for attracting financing for farm development. The document will help agricultural producers quickly navigate the support tools and go from identifying the need to receiving funds.
“We have systematized all available financing opportunities for farmers in one tool so that each producer – regardless of the scale of the farm – can quickly find the optimal solution for developing, restoring or scaling their business,” says Deputy Minister of Economy, Environment and Agriculture of Ukraine Taras Vysotsky.
The guide identifies three main sources of financing.
The most large-scale direction is state support. It covers a wide range of programs from the state budget: from basic subsidies to investment grants and compensations. For example, farmers can receive subsidies for livestock – from 2 to 7 thousand UAH per head, partial reimbursement of costs for construction and reconstruction of farms in the amount of 25-50%.
A separate block is made up of grant programs: up to 16 million UAH for the processing industry, up to 10 million UAH for planting gardens, up to 7 million UAH for the construction of greenhouses and up to 20 million UAH for the creation of vegetable storage facilities. A significant part of the programs provides for co-financing, and for front-line territories there are improved conditions – a higher percentage of cost coverage.
A separate emphasis is on supporting front-line regions. Available compensation mechanisms: up to 100% of the cost of land demining, up to 60% of insurance premiums, compensation for lost crops and damaged property. An important tool remains the program “Affordable Loans 5-7-9%”, which allows attracting preferential lending through banks with state support.
The second direction is international financial organizations and donor programs. They provide both grant and mixed support, often in partnership with banks. Among the possibilities are Mercy Corps grants for the restoration of farms with funding from several thousand to 150 thousand dollars, EBRD programs for financing the activities of enterprises and compensation for consulting services, initiatives of the Canadian government to support women in the agricultural sector, UNIDO programs to improve product quality, and others.
Separate international programs are aimed at developing product safety standards, supporting exports, and restoring processing facilities. They often include not only financing, but also training, consulting, and technical assistance.
The third direction is bank financing, which complements state and international instruments. Banks provide loans to replenish working capital, finance sowing, modernize machinery, purchase equipment, and implement investment projects. Partnership programs with resource suppliers and financial leasing are also common.
The matrix allows farmers to comprehensively assess all available sources of financing and choose the optimal combination of instruments depending on the needs of the farm, the scale of activity and the region of operation. (Economy Ministry)