The current situation in the agricultural sector is significantly more difficult than in 2022. The blocking of maritime exports, the sharp fall in purchase prices, the shortage of working capital, and problems with logistics are jeopardizing the sowing campaign and global food security. This was stated by a member of the board of the Ukrainian Agri Council (UAC), Serhii Rybalko.

"Right now, practically no one is buying wheat or grain, and it is almost impossible to sell oilseed crops. And if it is possible to sell, then it is 30-40% cheaper than planned. Previously, wheat cost about UAH 10,000 per tonne, and today it is almost impossible to sell it even at UAH 7,000. And this is already the price at the elevator. After logistics costs, practically nothing is left for the producer," Serhii Rybalko noted.

According to him, the critical situation on the sales market is leading to the depletion of the financial resources of agricultural enterprises. Due to the rising price of fuel, high logistics costs, and the absence of the ability to sell the harvest profitably, farmers are forced to sell their products immediately after harvesting, without the ability to build up stocks or accumulate funds for the next production cycle.

"The current situation is significantly more difficult than in 2022. Back then, farmers still had a certain margin of safety: there was working capital, it was possible to sell part of the products. Today, the financial gap may become catastrophic for many farms. Producers have run out of working capital, and no one has canceled the payment of obligations. It is necessary to pay lease payments, loans, and to settle up with seed and agrochemical companies. There is effectively no money to conduct the autumn sowing campaign. This is a very dangerous story, where Ukraine may be left with unsown fields. This is precisely one of the biggest risks today," he emphasized.

One of the key ways out of the crisis should be affordable lending to farmers.

"To conduct the autumn sowing, farmers need about UAH 200 billion. Ukraine has already made a corresponding request to its European partners. The assistance of European countries will be extremely important," Serhii Rybalko noted.

The UAC emphasizes that the consequences of the situation extend beyond the agricultural sector. If producers do not have the ability to finance the sowing campaign, this will lead to a reduction in the production of agricultural products, a decrease in Ukraine's export potential, and an increase in the risks of global food instability.