Grants for the agricultural sector: the government has updated the terms
23 April 18:34
The government has updated the mechanisms for providing grants to support the development of horticulture, berry farming, viticulture, and greenhouse farming, as well as the construction of vegetable and fruit storage facilities. This was reported by the Ministry of Economy, Environment, and Agriculture, according to "Komersant Ukrainian".
What has changed
The document provides for a number of innovations. In particular:
- mandatory verification of funding recipients is being introduced in accordance with the requirements of the Framework Agreement between Ukraine and the EU;
- grant recipients must disclose the source of funding using the EU emblem and the label “funded by the European Union – Ukraine Facility”;
- a ban is imposed on granting funds to entities subject to EU sanctions.
“At the same time, opportunities for agricultural producers have been expanded. In particular, a classification of storage capacity has been introduced, opening access to funding for small farms, and the list of regions suitable for almond cultivation has been expanded,” the statement reads.
According to the agency, grants will be provided exclusively for the new construction of vegetable and fruit storage facilities on land plots. The minimum capacity of the facilities is 500 tons of simultaneous storage. The maximum grant amount is up to 20 million UAH and depends on capacity:
- from 500 tons – up to 4 million UAH;
- from 1,500 tons – up to 7 million UAH;
- from 3,000 tons – up to 10 million UAH;
- from 6,000 tons – up to 20 million UAH.
Requirements for job creation are also stipulated: for storage facilities of 500 tons or more—at least 6 permanent employees; for 1,500 tons or more—at least 8; for over 3,000 tons—at least 12; and for over 6,000 tons—at least 16 employees.
How expenses will be monitored
The areas of grant use have been clarified separately, and spending controls have been tightened: mandatory expert review of project cost estimates is being introduced, along with additional oversight of the cost of equipment and materials.
These changes are expected to increase the transparency and accountability of grant programs, prevent individuals under sanctions from accessing funding, and strengthen control over the use of state resources.
In addition, the updated support mechanisms will stimulate the development of agricultural processing, the creation of new businesses and jobs, and will contribute to regional economic growth.
“We are systematically improving grant programs so that they comply with European rules while maximizing their contribution to the development of Ukraine’s agricultural sector. This involves both access to financing and the creation of added value, the development of agricultural processing, and the strengthening of the economy’s overall resilience,” noted Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
Overall, the proposed changes make state support more targeted and accessible to small and medium-sized producers, while maintaining the principles of co-financing and the effective use of budget funds. At the same time, they will contribute to the development of modern storage infrastructure, the reduction of post-harvest losses, the improvement of the quality and competitiveness of agricultural products, and the creation of new permanent jobs in the regions, the Ministry of Economy noted.
