Corteva Agriscience, an international agricultural company operating on the Ukrainian market, has started using crop receipts to ensure financing of Ukrainian farmers in the conditions of the volatile market.
According to a press release from the company, crop receipts are available for the purchase of seeds and crop protection products of Corteva Agriscience in Ukraine. “Using this tool, farmers get the opportunity of increasing the credit limit for the purchase of Corteva Agriscience products and defer payment if necessary, and also protect themselves from the impact of changes in product prices,” the company said.
Corteva Agriscience said that issuing a crop receipt will take up to three days and will cost an average of 0.3% of the amount of the financial obligation under the receipt paid for the notary endorsement service.
A prerequisite for issuing a crop receipt is that the farmer owns or leases a sufficient number of officially registered farmland. The sown area for a crop receipt is determined by a special formula that takes into account the expected yield of the client for two years, the price of agricultural products and the amount of the obligation.
“Obligations of a producer on the crop receipt are guaranteed by a pledge – the future harvest of crops such as corn, sunflower and wheat. The amount of the obligation is determined by the formula agreed upon by the farmer and Corteva Agriscience, taking into account prices for agricultural products in a certain quantity and quality, but cannot be less than UAH 1.5 million, which is the minimum amount for using the crop receipt,” the company said.