Lending to Ukraine’s agricultural sector has exceeded pre-war levels, reaching $3.9 billion USD. At the same time, more than 70% of the loans agricultural producers now secure are no longer for covering current needs, but for modernizing production and updating equipment. This shows that the sector is shifting from survival to investment in development.
The main driver of these changes remains the state program “Affordable Loans 5-7-9%.” It currently accounts for nearly half – 45% – of all agricultural lending in the country. For farmers in frontline areas, where risks are extremely high, this program has become the only lifeline. In Sumy region, 81% of all loans to agricultural producers are issued under the “5-7-9%” program; in Kherson region, this share reaches 98%; and in Donetsk region, the state program covers a record 100% — without it, financing for agribusiness there would simply be impossible.
In January 2022, the total credit portfolio of agricultural producers stood at $2.8 billion. The full-scale invasion and the blockade of ports pushed the sector to the brink: according to World Bank estimates, agricultural producers lost nearly $25 billion.
It was loans that helped the sector withstand these first years. Agricultural producers began actively securing financing, and within a year, by January 2023, the credit portfolio had grown by 11% in dollar terms and by 42% in hryvnia terms.
“In the early years of the full-scale war, loans helped farmers preserve production, carry out sowing campaigns, and sustain the operation of enterprises amid unprecedented challenges. Today, lending has not just grown — its very nature has fundamentally changed. The share of short-term loans has fallen by half, while 72% of the portfolio now consists of ‘long’ money, with terms exceeding a year. Agricultural producers are securing funds to purchase new equipment and modernize capacities. This is the best evidence that the agricultural sector has adapted and is planning for the future,” said Taras Vysotskyi, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
Long-term loans represent an opportunity not just to sow and harvest crops, but to build plants, launch processing, and produce value-added products.
The growth in lending and the shift toward long-term investment demonstrate the resilience of Ukraine’s agricultural sector even amid the war — and lay the groundwork for technological modernization, the development of processing, and the strengthening of the competitiveness of Ukrainian agricultural exports.
Source: https://me.gov.ua
