Ukraine risks losing 5–7 mln ha of planted area for the next crop — Vysotskyi

Ukraine faces the risk of reducing planted area for the next crop by 5–7 mln ha unless sufficient financial support is provided to farmers. This was stated by Minister of Agrarian Policy and Food Taras Vysotskyi during a meeting with representatives of UN agencies.

The situation in the agricultural sector has deteriorated due to systematic Russian attacks on port and logistics infrastructure in the Greater Odesa area. One of the most pressing challenges is storage for the new crop: according to the Ministry of Agrarian Policy, Ukraine could face a storage capacity deficit of up to 11 mln tons as early as this autumn. Around $44 mln is needed to address the problem.

Providing farmers with sufficient working capital is another critical issue. Even if grain can be stored in temporary grain bags, farms still need to cover operating expenses, pay wages and prepare for the next planting campaign. Vysotskyi identified compensation for loan interest rates as the biggest challenge. Ukraine has already requested €220 mln from the EU to maintain concessional lending programs.

International partners are also helping address the storage shortage. FAO, the World Food Programme and other donors are ready to provide Ukrainian farmers with up to 10,000 grain storage bags as well as modular storage facilities. Around 60% of the temporary storage capacity is expected to be directed to frontline and the most affected regions.

The Ministry of Agrarian Policy and international partners are also working to secure additional financing from the World Bank and private humanitarian funds. FAO is also developing dedicated support instruments for small and medium-sized farms with limited access to traditional bank financing.

Tags: Ukraine, export, sown area, restrictions, war