Thursday, March 13, 2014, 10:11 Ukrainian farmers preparing for the spring planting have 80% of the funds needed. However, the direct deficit equals UAH 8bn, the Ministry of Agriculture and Food announced in a statement. The ministry estimates the total funds for spring field work at UAH 42.8bn. Planned expenses for spring field works per hectare of arable land is UAH 2,087.3, which is UAH 234.5 more than in 2013. "Out of the total demand for funds, provided companies provided UAH 34.8bn (81.3 %) with their own resources. Thus, the direct shortage of own funds is UAH 8bn," says Minister Ihor Shvaika. Shvaika noted that the deficit will be covered by borrowed funds, including bank loans totaling UAH 4.7bn and commercial loans of UAH 3.1bn. "We are in talks with representatives of the National Bank, commercial banks and other financial institutions for maximum support on the issue of domestic lending to farmers during the planting season. And we note a mutual understanding," said Shvaika . "Another acceptable source of covering the deficit of own funds to farmers is concluding forward contracts with the State Food and Grain Corporation of Ukraine and the Agrarian Fund and receiving an advance payment from them," the ministry said in the statement. With that move, the Agrarian Fund continues the trend of forward purchases of grain from the next harvest which started in November 2013. The total volume is estimated at 1.2 million tons. As of March 7, agricultural producers declared 436,000 tons of grain to be sold. The Agrarian Fund granted the applications of 248 growers, according to which the appropriate agreements for the supply of 409,000 tons were signed. "As a part of these agreements, advance payments totaling almost UAH 366mn are already transferred. Payments are made within one business day, if a certain number of documents are provided... In turn, as of March 7, the private company DPZKU "contracted and purchased more than 3.103mn tons of grains and oilseeds, and financed local farmers with more than UAH 4.317 bn", reports the ministry’s press service.
The original text is on Ukrainska Pravda at: http://www.epravda.com.ua/news/2014/03/11/426637/
