Ukrainian farmers are on the brink of survival: some farms may have to close
Ukrainian farms are going through a difficult financial period due to challenges in selling their crops and low purchase prices. Under these conditions, some farms may cease operations as early as next year.
According to him, farmers are currently forced to sell grain at prices that do not cover production costs. At the same time, farmers need funds to repay loans and prepare for the next planting season.
“It’s shameful to hear that they’re offering just over 3,000 UAH per metric ton for food-grade wheat, when the cost of production is about 7,000 UAH,” Goncharenko noted.
He explained that farms do have grain stocks, but there are virtually no opportunities to sell them. With bank loan repayment deadlines approaching, producers are forced to look for ways to sell their products even at unprofitable prices.
According to the head of the Farmers’ Association, the situation could be alleviated by making loans available not only to producers but also to companies involved in the processing of agricultural products.
The Association has proposed that the Cabinet of Ministers extend some of the loan programs intended for agricultural producers to processing enterprises. At the same time, Goncharenko believes that such support should be provided under certain conditions.
“We have proposed to the Cabinet of Ministers that the loans currently available to agricultural producers be shared with processors. This is because processors are asking for low-interest loans, but banks do not always accommodate them. However, we propose that these loans be available only on the condition that the processor purchases food grain from farmers at a price of no less than 9,000 UAH per metric ton. This will ensure jobs for processors, food security, and provide farmers with the funds they need to plant their crops. “Farmers need to have at least a small profit margin, because they’ll have to buy mineral fertilizers, seed, and pesticides, and they’ll also have to pay taxes. Otherwise, many farms may simply not survive until next year,” he emphasized.
Goncharenko also criticized the stance of some processors who are trying to take advantage of the drop in purchase prices. In his view, this approach could lead to the bankruptcy of producers and create problems for the country’s food security.
“Processors, unfortunately, think only in the short term. If they can buy cheaper, they want to buy cheaper, and they don’t care whether the producer goes bankrupt or not. They say the market regulates economic processes on its own, but those who are responsible for this must still exercise human responsibility—thinking about how we’ll live in a year or two. The war will end, and we must provide our people with food so they don’t go hungry. Because hungry people are no less of a disaster than people under bombardment,” said the head of the Farmers’ Association.
Preparing for the upcoming planting season remains a separate challenge. According to Goncharenko, the vast majority of farmers are currently unprepared due to a lack of working capital and labor. The situation remains most difficult for small farms.
“Let me put it this way—at this stage, the vast majority of farmers are not ready for planting season. There is no working capital, no workers, and no way to pay wages, even if they manage to hire someone. Small farmers are suffering the most,” he noted.
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