The government is preparing crop-secured loans for farmers due to the suspension of sea exports

Agricultural producers will be able to attract affordable financing secured by the harvested crop in order to conduct autumn sowing and not sell grain at low prices.

This was announced by the Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi.

According to him, due to the suspension of exports through the ports of Great Odesa, the supply of grain on the domestic market significantly exceeded demand, which caused a drop in purchase prices.

The government has instructed to urgently develop an affordable lending program for farmers. The Ministry of Agrarian Policy has already held consultations with representatives of the industry and banks, and the relevant decision is being worked out jointly with the Ministry of Economy and the Ministry of Finance.

“They will be able to attract funds secured by existing grain, get through the crisis period and not sell grain at prices significantly lower than its cost on international markets,” Vysotskyi noted.

The ministry estimates the agricultural sector’s resilience reserve at several months. At the same time, the harvest continues to accumulate, and in November there may not be enough storage capacity.

According to the minister, the ports of Great Odesa provide about 90% of the export of grain, oilseeds and their processed products. Alternative routes via the Danube, railway and road transport cannot provide even half of the required volumes.

If sea exports do not resume, more than 27 million tons of agricultural products may remain unexported in Ukraine. Even after the resumption of the sea corridor, the country will need time to export the accumulated volumes before the start of the new marketing year in the summer of 2027.

Read also: Suspension of the ports of Great Odesa. What market participants expect and how they adapt