Affordable Loans 5-7-9%: Expanded Preferential Financing Opportunities for Farmers

Ukrainian agricultural producers are gaining additional opportunities to access preferential financing under the state-run Affordable Loans 5-7-9% programme. The need to revise lending conditions has become more urgent amid disruptions to maritime logistics and growing demand for working capital to finance field operations. In early August, the Government announced a package of financial measures for the agricultural sector, and on August 6 the Cabinet of Ministers approved part of the proposed changes.

The main objective of state support is to preserve the continuity of the agricultural production cycle. For a farming enterprise, delays in selling harvested crops mean not only postponed revenues but also a shortage of funds for fuel, seeds, fertilisers, lease payments, machinery repairs and preparations for the next sowing campaign. This is why access to working capital becomes particularly important when traditional export channels operate under unstable conditions.

Maritime logistics have increased farmers’ need for financing

In early August, the Ministry of Agrarian Policy and Food announced that it was preparing a package of financial and logistics measures together with the Ministry of Finance, the Ministry of Economy and Environment, the National Bank of Ukraine, the banking sector and specialised agricultural associations.

The immediate trigger was the temporary suspension of vessel calls at the ports of Greater Odesa following Russian attacks on civilian ships. According to the Ministry of Agrarian Policy, the resulting problems for maritime exports are comparable in scale to the challenges faced at the beginning of the full-scale invasion.

For agriculture, logistics restrictions quickly translate into financial pressure. If grain or other agricultural products remain in storage for longer, producers receive sales revenue later, while the next production cycle must already be financed. As a result, a cash-flow gap emerges between harvesting and the start of the next round of field operations.

One of the mechanisms intended to address this problem is additional financing, including loans secured against already harvested crops. According to Minister of Agrarian Policy and Food Taras Vysotskyi, this approach should help farms complete the autumn sowing campaign on time and prepare for spring fieldwork.

The 5-7-9% programme terms for farmers have already been revised

Among the measures initially discussed were the extension of preferential lending under the Affordable Loans 5-7-9% programme for working-capital needs, the use of state guarantees and more flexible requirements for agricultural producers as borrowers ahead of the 2027 sowing campaign. The Ministry of Finance was also working on the allocation of state guarantees among banks, while the National Bank was preparing corresponding lending conditions for the agricultural sector.

On August 6, the Cabinet of Ministers approved amendments to the procedure governing state financial support for businesses.

One of the most important changes concerns the use of loan funds for working capital. Previously, under the programme’s priority lending areas, no more than 20% of the loan amount could be allocated to such needs. This restriction has now been removed for agricultural producers.

As a result, farming enterprises have greater flexibility in using borrowed funds for current production expenses. These may include the purchase of seeds, mineral fertilisers and fuel, lease payments and other costs directly related to agricultural production. At the same time, the overall lending limit remains unchanged.

Working-capital interest rate reduced to 10%

Another important change concerns the cost of borrowing. For loans issued to agricultural producers to replenish working capital, the interest rate has been set at 10% per year instead of the previous 15%. The difference between the bank’s commercial interest rate and the rate actually paid by the borrower is compensated by the state.

It is worth noting that the name of the programme itself can be misleading if interpreted literally. Affordable Loans 5-7-9% has long been the established name of the government’s business support mechanism, but actual rates for individual lending categories may differ from the figures included in the programme’s title. Following the changes introduced in August 2026, the applicable rate for agricultural working-capital loans is 10%.

The Government estimates the total lending capacity under the expanded agricultural support mechanism at up to UAH 80 billion. Preferential financing is expected to help farms cover the cost of field operations, maintain production and avoid a situation in which export disruptions force producers to reduce the next production cycle because of insufficient working capital.

The programme remains one of the largest business financing channels

The scale of the Affordable Loans 5-7-9% programme has grown considerably in recent years. By the end of July 2026, Ukrainian businesses had received around 22,700 loans worth UAH 104.5 billion since the beginning of the year. Since the programme was launched in February 2020, a total of 157,600 loans worth UAH 566.6 billion have been issued, of which UAH 477 billion were provided during the period of martial law. Agriculture remains among the sectors receiving the largest volumes of financing.

The programme is implemented by the National Development Institution through a network of authorised banks. Its mechanism is designed to reduce the cost of borrowing for micro, small and medium-sized businesses through state compensation and government guarantees.

For the agricultural sector, such an instrument is particularly important because of the seasonal nature of production. A significant share of expenditure occurs long before revenue from the future harvest is generated. Therefore, access to working capital directly affects sowing areas, the intensity of production technologies and a farm’s ability to carry out agricultural operations on time.

Financing will be complemented by alternative logistics

Lending alone cannot eliminate the root cause of the problem — limited export capacity. For this reason, the financial support package is being considered together with measures to diversify transport routes.

Ukraine continues negotiations with international partners aimed at restoring stable operation of the maritime export corridor. At the same time, greater use of the Danube route and overland transport corridors is being considered. According to the Ministry of Agrarian Policy, more than ten new dry ports have been established along Ukraine’s western border since the beginning of the full-scale war, expanding the country’s capacity for transshipment and agricultural exports.

This approach effectively combines two instruments for stabilising the agricultural sector. Preferential loans are intended to provide producers with the time and working capital required to continue production, while the development of alternative logistics should accelerate product sales and the return of funds into the operating cycle of agricultural enterprises.

For this reason, the changes to the Affordable Loans 5-7-9% programme are important not merely as a way to reduce the cost of bank financing. Under unstable export conditions, they become a mechanism for maintaining the entire agricultural production cycle — from selling the harvested crop to purchasing production inputs and preparing the next season’s harvest.