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The government actively supports the agricultural sector and the agrarians. Thus, special financial instruments have been introduced to provide rural areas with the required funds for the spring and autumn field work, and the harvest. For several years, farmers have received interest-free funds, through participation in the forward programs. In addition, the villagers are given the opportunity of using the mechanism of warehouse receipts, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
This is particularly important given the fact that about 25% of foreign exchange revenue to the state budget from exports are provided by the agricultural sector. At the same time Ukrainian food has become an integral component of global food security. And this is not only due to our country's global leadership on the market of grain and oilseed. Recently, Ukraine has been actively increasing the export of finished agricultural products.
As noted by government analysts, at the president’s request, for several years the Ministry of Agrarian Policy and Food has been searching for the best ways of raising funds for farmers.
“Clearly, the loans offered by commercial banks are a burden for producers, and international grain traders are in no hurry to finance future harvest. And so the state assumes those functions. In particular, the mechanism of financing the agro-industrial complex in the high seasons — spring and fall field work, as well as the harvest, is still being developed,”Minister of Agrarian Policy and Food Mykola Prysyazhnyuk said.
Among the optimal financial instruments that are available for farmers, experts called primarily the forward purchases and warehouse receipts. According to the relevant ministry, about 1 million tons of grain for over 1 billion UAH are bought annually by the Agrarian Fund of forward mechanisms. The State Food and Grain Corporation, with loans and commitments to China, performs the forward procurements as well. In this case the agricultural producer gets about 2 billion UAH without interest.