AGRICULTURE PROGRAMS

USAID rehabilitates water infrastructure systems
USAID rehabilitates water infrastructure systems and improves the water supply for rural residents for both individual use and for agricultural production in Kherson oblast.

THE CHALLENGE

Ukraine’s capacity for sustainable, broad-based growth is stalled by:

  • Lack of productivity for agricultural SMEs,
  • Limited access to markets for SMEs; 
  • Deficient supporting infrastructure; and
  • Poor enabling environment for investment.

According to the Food and Agricultural Organization of the United Nations, Ukraine’s agriculture is performing at one-third of its production capability and one-half of its potential for contributing to GDP.

Ukraine requires assistance to tap its vast potential in agriculture, which would diversify the economy, leading to a recovery better wealth distribution and improved food security.

PROGRAM OBJECTIVE

To accelerate broad-based economic recovery through a more inclusive and competitive agricultural industry.

OVERVIEW

More than a billion people worldwide suffer from chronic hunger, and without a substantial increase in the global food supply, the number of food insecure people will further increase. Ukraine’s fertile soil and large land resources have the potential to significantly contribute toward feeding a world that, according to the United Nations, will need to produce 70 percent more food by 2050. USAID is helping Ukraine reclaim its role as the “breadbasket” of Europe and catalyze broad-based economic growth by supporting development of a stable, market-oriented policy environment; stimulating agricultural finance; and promoting more effective market infrastructure for small and medium producers.

OUR PROGRAMS

In 2016, USAID will support broad-based, resilient economic growth through more inclusive, competitive, and better governed agriculture that provides attractive rural livelihoods. Alongside private sector partners, financial institutions, other donors, and the Government of Ukraine, USAID will promote agricultural development that contributes to inclusive and sustainable broad-based economic growth and facilitate Ukrainian integration into the EU.

Water for Agri-Sector

USAID rehabilitates water infrastructure systems and improves the water supply for rural residents for both individual use and for agricultural production in Kherson oblast.

Development Credit Authority (DCA) Loan Portfolio Guarantee Program with ProCredit Bank

Launched in September 2015, a DCA loan portfolio guarantee program with ProCredit Bank encourages more long-term financing for agriculture and clean energy while demonstrating the viability of financing in both sectors. The program provides $9.5 million in new lending over eight years.

Development Credit Authority (DCA) Loan Portfolio Guarantee Program for Agricultural SMEs

Launched in September 2014, a DCA loan portfolio guarantee program with five partner credit unions from Kherson, Lviv, and Kharkiv enables credit unions to develop specialized loan products, explore the agriculture sector for eight years under the guarantee, and provide $6 million in new lending to underserved small farmers in their regions.

Agriculture Partnership Initiative (API)

Agriculture Partnership Initiative (API) is a part of the Feed the Future (FTF) Partnering for Innovation (P4I) program. API works with the private sector to co-finance and co-design activities that address long-standing agricultural development challenges in Ukraine. This activity addresses the Mission’s objective of increasing the productivity of agricultural small and medium enterprises (SMEs). With a $4.1 million dollar USAID investment, API leveraged an additional $10 million by awarding 4 grants to private sector partners: Bayer/IFC, Danone/ICF, Agrobonus and Agrico.

PROGRAM HIGHLIGHTS

AgroInvest

  • Helped develop a national agriculture strategy for 2015-2020.
  • Helped 30 Ukrainian agricultural industry associations to provide strategic and coordinated input on policies affecting their businesses.
  • In partnership with Pioneer Dupont, implemented a financial literacy and modern agricultural technologies training program by establishing three demonstration fields for sunflower (in Kharkiv, Kherson, and Lviv), bringing farmers to a model farm during the planting, growing, and harvesting cycles.

Water for Agri-Sector

  • Three water supply improvement sites will start operation in spring 2016
  • Two water supply management cooperatives created and registered
  • Sixty-two people trained on water supply management and cooperative creation, management, and operation

Agriculture Partnership Initiative (API)

  • Delivered four trainings on best farm management and marketing practices for 116 farmers and 32 input distributors.
  • Conducted eight workshops for over 400 small and medium enterprises showing how a timely and accurate soil sampling program can improve crop production.

Last updated: June 03, 2016

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