The Cabinet of ministers of Ukraine has made changes to the resolution on the provision of interest-free loans to family farms without obtaining the status of a legal entity, increasing financing and the loan term by half — up to $36.7 thousand to 10 years
As stated in the message of the ministry of agricultural policy and food of Ukraine, next year, an amount of $4 million has been allocated for this support program with the possibility of increasing the budget.
“As part of the opening of the land market, interest-free loans to unincorporated family farms for the purchase of agricultural land are a significant contribution of the government to support small farmers. For the most part, family farms lack a credit history, which becomes an obstacle to raising funds through banking institutions. The ministry said that these loans would be used to purchase up to 20 hectares of agricultural land through the Ukrainian state fund for support of farms,” the ministry said.
The Cabinet of ministers of Ukraine, by its resolution, determined:
- Changes in the approach to the distribution of funds between regions to provide financial support on a repayable basis;
- To increase the amount of financial support to $36.7 thousand per farm;
- To provide financial support to family farms without obtaining the status of a legal entity for the acquisition of agricultural land;
- The procedure for redistributing funds if the winning farm refuses financial support or it is impossible to agree;
- Provision of irrevocable financial support to farms through the Ukrainian state fund for the support of farms.