Ministry of Agrarian Policy Requests €220 Million in Non-Repayable EU Support for Farmers

This was reported by the press service of the Ministry of Agrarian Policy and Food of Ukraine.

The funds are proposed to be channelled through the state «Affordable Loans 5-7-9%» programme to ensure liquidity for businesses that, due to russian attacks on the ports of Greater Odesa, have lost the ability to export their products without disruption and require financing to continue operations and carry out the autumn sowing campaign.

«Because of russia’s blockade of maritime exports, thousands of Ukrainian farmers are unable to sell the products they have already grown and receive the funds needed to continue their operations. That is why we have appealed to the European Commission with a proposal to support Ukrainian producers by compensating interest on loans. This will enable farmers to maintain liquidity, carry out the autumn sowing campaign, and avoid being forced to sell their products at depressed prices,» stressed Taras Vysotskyi, Minister of Agrarian Policy and Food of Ukraine.

The prolonged disruption of port operations is creating a large-scale financial crisis for the agricultural sector. In the 2026/27 marketing year, Ukraine is expected to export about 64.4 million tonnes of agricultural products. However, due to the prolonged restrictions on the operation of seaports, exports could almost halve to around 29.6 million tonnes.

This means that substantial volumes of grain and oilseed crops will remain within the country. As early as October, effective storage capacity may be fully occupied, and by November more than 9 million tonnes of grain, oilseeds, and meal could remain without adequate storage facilities. The greatest risks concern wheat exports, which could decline from 17.6 million tonnes to 8.3 million tonnes.

Unable to sell their products, farmers are being forced to accumulate stocks without receiving revenue from sales. According to estimates by the Ministry of Agrarian Policy and Food of Ukraine, during the marketing year the sector will receive about €6.4 billion in cash inflows, while operating costs will amount to €11.2 billion. By November, unsold inventories worth almost €10.8 billion are expected to accumulate, while the agricultural sector’s minimum working capital requirement will reach approximately €4 billion.