Financial assistance for medium-sized agribusinesses

The international humanitarian organization Mercy Corps, with support from the Howard G. Buffett Foundation, is expanding the Ukraine Agriculture Support Program to support medium-sized agricultural and related businesses that have been affected by the war and whose recovery is critical for the farming activities of households, other farmers, and the livelihoods of local communities.

The Ukraine Agriculture Support Program will consider applications from businesses operating in the Dnipropetrovsk, Donetsk, Zaporizhzhia, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, Cherkasy, and Chernihiv regions (excluding areas where active hostilities are ongoing, as well as areas with restricted access or high risks to life and business operations). In particular, support for such businesses will be considered in areas with reduced risk of repeated attacks.

The Program is implemented in partnership with local organizations and covers the following regions:

• NGO “East Ukrainian Agricultural Advisory Service” (Donetsk, Poltava, and Cherkasy regions);

• Charitable Organization “PERSHI” Charitable Foundation [formerly NGO “Council of Women Farmers”] (Zaporizhzhia, Dnipropetrovsk, and Kirovohrad regions);

• Charitable Organization “LASKA” Charitable Foundation (Mykolaiv, Odesa, and Kherson regions);

• Charitable Organization “PIDTRYMKA AGRO” Charitable Foundation [formerly Agricultural Cooperative “Zernovyi”] (Kyiv, Kharkiv, Sumy, and Chernihiv regions).

Mercy Corps defines medium-sized agricultural enterprises as legally registered businesses operating in the agricultural sector (e.g., sole proprietors, limited liability companies (LLCs), joint stock companies (JSCs), etc.) that typically own a substantial share of agricultural land (on average from 500 to 3,000 hectares) in the rural communities where they operate. Accordingly, they are key taxpayers to local community budgets through land tax and employee payroll taxes. They also provide additional income for a significant number of households that receive annual lease payments (in monetary and/or in-kind form, such as animal feed).

Financial assistance under the Program will be directed toward replacing destroyed or damaged agricultural machinery, attachments, equipment, buildings, and other essential assets.

Applicants must provide information and evidence demonstrating how the war affected the enterprise’s operations and how financial assistance will support its recovery. Applicants must also include a justification of their financial need and explain why recovery would not be possible without this support.

Applications will also be assessed with consideration of security risks identified by Mercy Corps.

The average amount of financial assistance is USD 150,000, provided in the Ukrainian hryvnia equivalent at the current exchange rate of the National Bank of Ukraine (NBU). The amount of support may be higher or lower depending on the needs and specific circumstances of each selected medium-sized agricultural enterprise. Enterprises receiving financial assistance must conduct proper accounting, reporting, and payment of all taxes in accordance with Ukrainian law.

Program participants will be selected on a competitive basis.

Eligibility criteria for participation in the program:

• official registration and absence of any legal or regulatory restrictions on conducting business activities in accordance with the requirements of Ukrainian legislation;

• investment of own funds of up to 50% of the financial assistance amount. The size of the own contribution is determined individually and depends on the financial capacity of the program participant.

Priority will be given to applications that:

• Come from areas where the agricultural sector has faced a new reality characterized by constant danger, the breakdown of reliable market systems, and widespread destruction and looting of farms in de-occupied territories.

• Will have a positive impact on the recovery of affected communities and contribute to the livelihoods of farming households and rural populations through a socially oriented approach that benefits local residents, including women and vulnerable groups.

• Use a business model that involves mutually beneficial cooperation with agricultural households or other farmers engaged in subsistence agriculture in the area. Examples of such cooperation may include the provision of various agricultural services (e.g., equipment maintenance services); supply or production of agricultural resources (e.g., animal feed, fertilizers, seeds, etc.); purchasing agricultural products; or enabling access to markets, etc.

To apply for the program, you need to register on the official website of the Ukraine Agricultural Support Program https://uasp.mercycorps.org/ and fill out an online form.

The average processing time for applications is 8 weeks. This period may vary depending on the number of applications submitted.

• Provided information and evidence of how the business activity was affected by the war, and how financial assistance will support its recovery;

• Mutually beneficial cooperation with agricultural households or other small farmers. Examples of such cooperation may include: providing services that support farming activities; supplying or producing resources necessary for effective farming; purchasing agricultural products; or ensuring access to markets, etc.;

• Justification of the need for financial assistance;

• and other relevant information.