Financial assistance in the amount of UAH 100.858 million will be provided to 25 agricultural enterprises in Kyiv region as part of the government’s e-Work program to support small and medium-sized businesses, Deputy Minister of Agrarian Policy and Food Denys Bashlyk said on Facebook.
According to him, the funds will be used to develop horticulture, berry growing, viticulture, and greenhouse farming. Thus, farmers will receive grants worth UAH 80.858 million for the development of horticulture and UAH 20 million for greenhouses. So far, UAH 74.401 million has been paid to them.
In addition, since the beginning of the year, 902 farmers in the Kyiv region have received UAH 10.402 billion in bank loans for farm development, the deputy minister stated.
As reported, since the beginning of the year, 12.3 thousand agricultural enterprises have received UAH 65.2 billion in bank loans for development. Of these, 9.6 thousand agricultural enterprises received UAH 37.5 billion in loans under the state program “Affordable Loans 5-7-9”.
Farmers with more than 1,500 hectares of winter crops can insure their crops against war risks with a limit of indemnity from UAH 500 thousand to UAH 2 million in INGO Insurance Company until December 15, the company said in a statement.
“In the world practice, war risks are always included in the list of standard exclusions, and losses are not compensated,” the press release quotes INGO’s Director of Corporate Insurance Serhiy Krivosheev as saying. – “However, now in Ukraine we are ready to revise the rules to create more opportunities for farmers. We understand that not only the economic condition of the agricultural sector, but also many others depend on their success.”
Thus, INGO Insurance Company has expanded its standard winter crops insurance program, which provides protection against negative weather factors (extremely low temperature, ice crust, damping, drought, etc.), to include coverage of crop damage risks resulting from events that were a direct or indirect consequence of military operations.
The company assumes that this will “help agricultural enterprises maintain financial stability.”
It is noted that only winter crops of more than 1500 hectares, which are grown industrially and are located in the unoccupied territory or no closer than 50 km from the combat zone or the state border with Belarus and Russia, can be insured against military risks.
In the event of an insured event, INGO will compensate for the costs of sowing and growing crops damaged or destroyed as a result of military operations, including maneuvers, movement of equipment, construction of defensive structures, and demining costs.
“The company assumes reimbursement of such costs depending on the volume of insured crops with a limit of UAH 500 to 2 million,” the statement said.
According to it, the settlement of insured events for further compensation is carried out according to the standard procedure within 15 days from the date of submission of the necessary documents. A document confirming the fact of occurrence of such an event under military risks should be obtained from the military-civilian administration, the State Emergency Service or the National Police.
INGO Insurance Company has 30 years of experience in the market. Since 2017, the company’s main shareholder has been the Ukrainian business group DCH of Alexander Yaroslavsky.
The company holds 29 licenses for various types of compulsory and voluntary insurance, provides insurance services to corporate and retail clients, and is a full member of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU).
According to the National Bank, as of the middle of this year, INGO Insurance Company was the eighth largest in the market in terms of assets (UAH 3.28 billion). Its net earned insurance premiums for the first half of the year amounted to UAH 971.4 million, insurance payments and reimbursements – UAH 545.6 million, net profit – UAH 152.0 million.
Ukrainian farmers have already harvested 34 million tons of grain, Prime Minister Denys Shmyhal said.
“The harvest is underway. As of today, 34 million tons of grain have been harvested. In particular, 22 million tons of wheat,” Shmyhal said at a government meeting on Friday.
According to the prime minister, the domestic demand is about 6-7 million tons per year, so Ukraine feels quite confident in food security.
“We continue to work on expanding our export potential. It is important for our economy and important for global food security,” he added.
The Victory Harvest Charitable Foundation will receive 10 combine harvesters and five John Deere brand tractors from the foundation of American philanthropist Howard G. Buffett, which will be transferred exclusively for use by Kherson farmers for harvesting and during the next sowing season, the Foundation’s press service has reported.
“Russia’s war against Ukraine has become especially devastating for the people of Kherson region. The flooding of lands caused by the destruction of the Kakhovka dam has now been added to the constant shelling. Our foundation aims to extend support to farmers with these special harvesters and is also working to accelerate demining in the region,” the press service quoted the words of Buffett at a meeting with the head of the Kherson Regional Military Administration during a visit to Kherson region.
The donated John Deere equipment includes five S770 combines, five S760 combines and five 8430 tractors and has an estimated commercial value of more than $5 million.
The Howard G.Buffett Foundation also donated two DOK-ING minesweepers, along with metal detectors, vehicles and other demining equipment, to the State Emergency Service of Ukraine. Thanks to this equipment, more than 20 hectares of land in Kherson region have already been cleared and more than 72 explosive items objects have been removed.
This donation to the Foundation is the addition to agricultural equipment previously donated to the Victory Harvest Foundation with a total value of more than $27 million.
The war in Ukraine and its economic consequences have caused significant damage to the production and income of small farmers, which exceeded USD3.85 billion, according to a report by the UN Food and Agriculture Organization (FAO) published Monday.
“The data from this assessment will help FAO, the Ukrainian government and its partners to identify the urgent needs and geographic areas for investment and support to smallholder farmers, so that they can meet the challenges of the current situation and resume their activities quickly,” said Pierre Vauthier, Head of FAO’s office in Ukraine.
In a nationwide survey 1927 smallholders, who specialize in crop and livestock production, have a land area of up to 250 hectares and are located in 23 regions, including parts of Donetsk, Kharkiv, Kherson and Zaporizhzhia regions under the control of Ukraine, participated in the FAO survey.
Among the key factors that led to the suspension and/or reduction of farms, the FAO cited temporary cessation of activities, loss of control over farmland, death of owners and land sales caused by or related to the escalation of war.
According to the survey, the number of small producers in Ukraine has decreased by almost 80%, of which 1% are livestock producers who stopped producing small amounts of crops, and almost 7% are crop producers who stopped their production completely.
The FAO estimated the total amount of losses and losses for smallholders at USD 3.85 billion in the crop and livestock sectors.
According to the FAO, about 12% of small farms reported that some of their land was potentially contaminated by unexploded ordnance. Frontline areas were most affected, with 32% of respondents confirming this information.
Almost 90% of small crop producers reported a decrease in income, with more than 70% of them recording significant and 25% sharp declines. Small livestock producers were less affected, but more than 60% of them reported a decrease in income, with 46% citing it as significant or drastic.
According to the survey, small farmers have increased their debts compared to the same period before the war, from 6% in 2021 to 9% in 2022.
The FAO noted increased problems due to disruptions in agri-food value chains. On average, 9% of respondents reported that resellers had stopped their operations or were unable to procure more produce.
Most producers surveyed cited difficulty accessing agricultural inputs due to high prices, lack of workers, lack of fuel or electricity to power farm machinery, or even lack of access to electricity. In addition, there is a collapse of markets for agricultural resources (fertilizers and seeds), particularly in frontline areas.
According to the FAO, the greatest needs reported by respondents for continued production are provision of fertilizer, fuel and seeds, access to feed or forage, restocking of livestock and access to markets.
The FAO used an adapted methodology for assessing agricultural losses and damages. The survey was assisted by the Kyiv School of Economics, the All-Ukrainian Association of Rural, Village Councils and United Communities, the East Ukraine Agricultural Advisory Service for the survey in Donetsk Oblast, and the Office of Prospective Development for the survey in Zaporizhzhia Oblast.
Farmers in Romania and Bulgaria staged protests on Friday against the European Union’s decision to exempt agricultural products from Ukraine, which has oversupplied local markets and contributed to lower prices, the Associated Press (AP) reported on Friday.
“Farmers in Romania and Bulgaria organized protests on Friday over the European Union’s stance on excessive supplies of Ukrainian agricultural products that have flooded local markets and weakened prices,” AP reports.
Protests were held in Bucharest and other cities in Romania. In Bulgaria, farmers blocked several border crossings.
“There are less than three months left before the new harvest and there is a danger that the products will not be able to be sold above the production price,” AP quoted Liliana Peron, executive director of the Romanian Farmers Association, as saying.
In recent weeks, Polish farmers have also been protesting against the EU’s duty-free supplies of Ukrainian grain to European markets, forcing the country’s Agriculture Minister Henryk Kowalczyk to resign.
Last year, the EU abolished customs tariffs for Ukraine to allow for freer grain supplies.
On Monday, the European Commission announced its desire to help the population of Ukraine by organizing the export of Ukrainian grain, but it is making sure that the EU market does not suffer too much from Kyiv’s support measures.
