Due to problems with storing and exporting the harvest caused by the closure of Black Sea ports, there is a risk that the planted area for the upcoming harvest could be reduced by 5–7 million hectares, said Taras Vysotsky, Minister of Agrarian Policy and Food.
“The biggest challenge today is compensating for interest rates on loans. If we do not support the financial stability of farmers, there is a risk that the area sown for the upcoming harvest will be reduced by 5–7 million hectares,” the Ministry of Agrarian Policy’s press service quoted Vysotsky as saying during his meeting with the UN System Coordinator in Ukraine, Matthias Schmale, and the leadership of the Food and Agriculture Organization of the United Nations (FAO) and the World Food Programme (WFP).
The minister emphasized that Ukraine currently faces two key challenges: preventing the spoilage of the harvest that has already been gathered, ensuring storage capacity, and providing farmers with working capital.
“According to our estimates, the storage capacity deficit could reach 11 million metric tons as early as this fall, and the funding requirement for this area is $44 million,” he noted.
According to Vysotsky, Ukraine has sent an official request to the European Union for the allocation of EUR220 million to compensate for interest rates on bank loans for farmers.
Another important topic of the talks, he said, was the willingness of UN agencies to become more actively involved in resolving systemic problems caused by the war and overcoming its consequences, the statement noted.
UN representatives confirmed their readiness to respond promptly to Ukraine’s urgent requests, mobilize resources from the international community, expand operational assistance, and support Ukraine in overcoming humanitarian and economic challenges.
Following the meeting, the parties agreed on a joint action plan to attract additional donor funding from international financial institutions, including the World Bank, as well as private humanitarian foundations.
