Ukrainian farmers have faced an acute shortage of working capital due to problems with maritime exports, low purchase prices, and the accumulation of carryover stocks. To conduct the autumn and spring sowing campaigns, make payments to landowners, and service loans, the agricultural sector needs about UAH 500 billion, and without state and international financial support, some farms may reduce their sown areas or even cease operations.

This was stated by the Deputy Chairman of the Ukrainian Agri Council, Denys Marchuk.

According to him, the current logistics situation does not allow farmers to sell their harvest in a timely manner and receive funds to finance field work. Whereas previously the sale of grain provided farmers with resources for fuel, wages, taxes, and loan repayments, now, due to the fall in domestic prices, this model has effectively stopped working.

"Today, about UAH 500 billion is needed to conduct the autumn and spring sowing campaigns. This is a very large amount of money, and we understand that Ukraine's budget will not be able to cope with this on its own. That is precisely why negotiations are ongoing with international partners regarding support for the Ukrainian agricultural sector. We have the desire to work, but producers' margin of safety is not limitless. Within the coming months, funds must be found," Denys Marchuk noted.

The UAC emphasizes that one of the key solutions should be expanding farmers' access to credit resources.

"The first mechanism needed is financing, so that farmers can conduct the sowing campaign. The second is the restructuring of loans, since today many producers simply have nothing to pay either the loan principal or the interest with. State insurance of the credit portfolio is also necessary, so that banks can more actively lend to the agricultural sector. At the same time, the UAC asks not to change the logic of the '5-7-9' program and to leave the possibility of using these funds for current economic activity," the Deputy Chairman of the UAC emphasized.

Insufficient financing of the agricultural sector will have not only production consequences. Millions of owners of land shares may be left without lease payments.

"If sufficient sources of financing are not found, farmers will be forced to leave part of their land fallow, and some enterprises may cease operations. Behind each such farm stand not only its workers, but also the families of landowners who lease out their land. They must receive lease payment for their land shares, but when a farmer is forced to sell products at a loss to themselves, they simply have nothing to pay with. That is precisely why credit support is needed not only for the agricultural sector, but also to avoid negative social consequences," Denys Marchuk emphasized.