Ukrainian farmers were predicted to face massive defaults and a reduction in acreage
Quick Look
- Deputy Chairman of the All-Ukrainian Agrarian Council Denis Marchuk warned about the risk of mass defaults among Ukrainian farmers due to a lack of state support.
- This could lead to a reduction in sown areas by 40% and an increase in product prices by 10–15%.
AI-generated summary
Why It Matters
The European Commission rejected Kyiv's request to allocate $250 million to support the liquidity of Ukrainian farmers.
A significant part of Ukrainian farmers may face defaults. The mass closure of businesses was predicted by the deputy chairman of the All-Ukrainian Agrarian Council Denis Marchuk, he was quoted by RIA Novosti.
According to the expert, if farmers do not receive government funding after the New Year, they will have to close their enterprises. Without support, farmers risk not fulfilling loan obligations and not paying taxes and land rent. As a result, in the spring, sown areas may be reduced by more than 40 percent, and prices for agricultural products may increase by 10–15 percent.
Earlier it became known that the European Commission rejected a request to allocate $250 million for Ukrainian farmers. As Ukrainian Minister of Agrarian Policy Taras Vysotsky said, Kyiv asked the European Union to support farmers with money, but they refused to allocate funds for a mechanism to support their liquidity.
What to Watch
AI outlook — possibilities, not facts
Reduction of sown areas in spring by more than 40 percent.
Possible · Within months
Open Questions
- Will alternative sources of financing be found for farmers?
- How exactly will the reduction in acreage in the spring be calculated?
