Ukraine and the EU are working on a €4 billion support scheme for farmers

Ukraine has called on the EU to help develop a financial support mechanism for farmers facing liquidity constraints and a shortage of storage capacity due to disruptions to seaborne exports. According to Ukraine’s Agriculture Ministry, the closure of the three deep-water ports of Greater Odesa, which normally handle more than 90% of agricultural exports, threatens not only crop sales but also the 2027 planting campaign.

In 2026/27, Ukraine had planned to export around 64.4 mln tons of agricultural products, or an average of 5.4 mln tons per month. However, shipments in August may reach only around 1.6 mln tons. Even as alternative routes gradually expand, their capacity is estimated at no more than 2.9 mln tons per month, potentially limiting total exports for the season to around 29.6 mln tons.

The Agriculture Ministry warns that more than half of the volumes initially intended for export could remain in Ukraine. By November, the shortage of storage capacity could reach 11 mln tons, while more than €10.8 bln could be tied up in unsold agricultural stocks. This would deprive farmers of liquidity needed to purchase fuel and fertilizers, pay wages and land rent, and finance the next planting campaign.

To support agricultural liquidity, Ukraine has proposed a €220 mln EU grant. Rather than being paid directly to farmers, the funds would be used to compensate interest rates and partially cover banking risks under preferential lending programs. According to the ministry, the mechanism could help mobilize around €4 bln in bank loans for the agricultural sector at interest rates of no more than 10% per year.

The ministry said the mechanism should help farmers avoid being forced to sell crops at depressed prices and secure financing for the 2027 planting campaign without redirecting large volumes of Ukrainian agricultural products onto the EU market. The proposal is expected to be developed through the Ukraine Facility and EU guarantee institutions in the coming weeks, before the autumn peak in demand for grain storage.

Tags: support, financial support, support scheme for farmers, Ukraine, EU