The United States Agency for International Development (USAID) has announced an expansion of its Agricultural Sustainability Initiative of Ukraine (AGRI-Ukraine), attracting nearly $1.75 billion in additional investments. This significant funding boost is designed to strengthen Ukraine's agricultural industry by providing essential resources to farmers across the country.
New Partnerships Fuel Investment
According to a press release from USAID, the additional funds will be sourced through partnerships with nine new entities from the private sector, international financial institutions, and other donors. The new partners include:
- Astarta
- BEST Leasing
- Credit Agricole Bank
- U.S. International Development Finance Corporation (DFC)
- International Finance Corporation (IFC)
- IMC
- OTP Bank
- Universalna Insurance Company
- U.S. Department of State's Office of Weapons Removal and Abatement
These collaborations have propelled the total investments raised under the AGRI-Ukraine initiative since July 2022 to over $2.26 billion.
Supporting Ukrainian Farmers
USAID emphasized that the expanded funding will enable the initiative to reach more farmers and provide greater support. Since its inception in July 2022, AGRI-Ukraine has assisted over 15,000 Ukrainian farmers, representing 34% of the country's registered farmers. The support includes access to:
- Seeds
- Fertilizers
- Plant Protection Products
- Storage Solutions
- Financing for Crop Production
This comprehensive assistance aims to enhance agricultural productivity, ensure food security, and stimulate economic growth in Ukraine's rural communities.
Impact on Ukraine's Agricultural Sector
The AGRI-Ukraine initiative focuses on:
- Increasing Production: Providing farmers with the inputs they need to maximize crop yields.
- Improving Storage and Processing: Enhancing infrastructure to reduce post-harvest losses.
- Facilitating Access to Financing: Offering financial services to help farmers invest in their operations.
- Promoting Innovation: Encouraging the adoption of modern agricultural practices and technologies.
By addressing these key areas, the program seeks to build a more resilient and sustainable agricultural sector in Ukraine.
Statements from USAID
USAID highlighted the importance of the agricultural sector in Ukraine's economy and the livelihoods of its people. The agency noted that the expanded initiative would:
"Empower Ukrainian farmers by providing the necessary tools and resources to overcome current challenges and contribute to global food security."
Background
Ukraine is known as one of the world's leading grain producers and exporters. However, the sector faces challenges due to geopolitical tensions, economic constraints, and infrastructural needs. USAID's AGRI-Ukraine initiative is part of a broader effort to support Ukraine's sovereignty, economic development, and integration into global markets.
About USAID
The United States Agency for International Development (USAID) is a U.S. government agency that provides international economic and humanitarian assistance. USAID works in over 100 countries to promote global stability, support economic growth, and improve lives through various programs and initiatives.
