The Ukrainian farmers in 2016 will finance 90% of the costs of the autumn field works, which totals UAH 89.7 billion, from its own funds, according to the forecast of the Ministry of Agrarian Policy and Food.
The remaining 10% of the funds needed will be attracted by farmers through bank loans (UAH 4,9 billion) and commercial loans (almost UAH 4 billion), according to the report.
”As of July 29 of this year, the actual expenditure of agricultural enterprises total UAH 21.8 billion, accounting for 24.3% of the planned demand, including UAH 19.5 billion of own funds spent, which is 24.2% of the demand, and loans attracted worth UAH 2.3 billion, or 25.9% of demand,” the ministry says.
The Ministry of Agrarian Policy said that interest rates on loans for farmers for their autumn field works range between 17.5% and 30% per annum.
As UNIAN reported earlier, the Agrarian Ministry estimates the cost of the spring field works this year amounted to UAH 79.3 billion, while in 2015, the authorities estimated their cost at UAH 65 billion. Autumn field works in 2015 cost UAH 80 billion.
The ministry has repeatedly stressed that the annual interest rate on loans in the Ukrainian banks is too high for agricultural enterprises, which forces the government to develop alternative ways of lending to agricultural sector.
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