Deputy Chairman of the All-Ukrainian Agrarian Council warned about the risk of default by farmers
Denis Marchuk announced the possible shutdown of enterprises and a reduction in acreage due to lack of government support
Quick Look
Deputy Chairman of the All-Ukrainian Agrarian Council Denis Marchuk warned that without state support after the New Year, a significant part of Ukrainian farmers will face default, which could lead to a reduction in crops by 40% and an increase in product prices.
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Why It Matters
Ukrainian farmers face difficulties when exporting products through the Black Sea ports due to military risks. The All-Ukrainian Agrarian Council previously called on the authorities to take anti-crisis measures.
A significant part of farmers in Ukraine will be forced to default and close their enterprises if they do not receive funding from the state after the new year, Deputy Chairman of the All-Ukrainian Agrarian Council Denis Marchuk said in an interview with the Ukrainian portal Novosti.live.
“A significant part of commodity producers will be forced to declare a default and close their enterprises,” Marchuk said in a video published on the portal’s Telegram channel.
According to him, Ukrainian farmers face the risks of non-fulfillment of loan obligations, the inability to pay taxes and land rent. As Marchuk said, in this case, during the spring sowing campaign in Ukraine, a reduction in crops by more than 40% is possible. Marchuk also noted the risks of rising prices for agricultural products within 10-15%.
On July 28, the All-Ukrainian Agrarian Council said that due to problems with the shipment of products in Ukrainian ports, there is a threat of bankruptcy of agricultural enterprises and called on the authorities to urgently take anti-crisis measures. On July 23, Minister of Agrarian Policy of Ukraine Taras Vysotsky announced that ships had stopped calling at Ukrainian ports, traffic was suspended by decision of shipowners.
Open Questions
- Will government funding be allocated to farmers?
- What anti-crisis measures is the government considering?
