USAID continues to bolster Ukraine’s agricultural recovery
Despite the catastrophic impacts of Russia’s full-scale invasion on Ukraine’s agricultural sector, Ukraine produced 23 million metric tons of wheat this growing season. That’s enough wheat to bake over 39 billion loaves of bread.
However, fields littered with missile debris and unexploded ordnance are just one of the challenges Russia’s brutal war has caused for Ukrainian farmers. Disrupted export routes and increased operational risk have created extra hurdles, making access to finance one of the biggest problems facing Ukraine’s agriculture sector today. Without capital to purchase seeds, fertilizers, and equipment, fields will remain unsown and crop yields will fall.
Overcoming these challenges in the context of Russia’s illegal war requires significant support from the international community.
This support not only aids immediate recovery efforts but also strengthens Ukraine’s economy for the future, reducing the need for long-term assistance.
U.S. support to boost Ukraine’s economy includes technical assistance and grants to Ukrainian businesses, and financial mechanisms such as partial loan portfolio guarantees for financial institutions. These guarantees help reduce risk for financial lenders by covering a portion of losses in the case of borrower default. In addition to bolstering Ukraine’s economic resilience and recovery efforts, this support fortifies food security across the globe.
To help Ukrainian farmers access the financial and physical resources they need, USAID is using every tool in its toolkit.
Providing Access to Finance for Agribusinesses in Western Ukraine
Agriculture remains the export engine of the Ukrainian economy. As the country’s eastern regions are ravaged by one of the worst landmine crises since World War II, western Ukraine’s farmland has become increasingly important to producing the grains and crops needed to keep feeding the world.
That’s why USAID, in collaboration with the U.S. Development Finance Corporation (DFC), has provided $35 million in loan portfolio guarantees since the start of Russia’s war to help Bank Lviv — a major bank for small and medium enterprises in western Ukraine. This support makes it possible for Bank Lviv to offer essential access to finance to over 13,000 businesses, with a strong focus on the agriculture sector.
For the 500,000 businesses in western Ukraine that lack adequate access to finance, this opportunity is crucial.
USAID’s loan portfolio guarantees help everyday Ukrainian entrepreneurs access the credit they need to continue investing in their businesses. Loan portfolio guarantees enable farmers like Anna from Lviv region to continue sowing even after a Russian missile exploded in her field. Bakers like Ihor in Ivano-Frankivsk can still send bread from their bakeries to Kyiv every day under rocket attacks. And export specialists like Mykola can continue shipping their goods to market while using their own fleet of vehicles for humanitarian needs.
These stories are testaments to Ukrainian resilience, and there are thousands more.
Restaurateurs, berry producers, food processors, grain exporters, and countless other Ukrainian agribusinesses benefit from U.S. support in overcoming barriers to accessing finance. As a result, they are able to work tirelessly, continuing to resist Russia’s aggression while securing a prosperous future for their families and future generations.
Expanding Access to Critical Agricultural Inputs
Through the Agriculture Resilience Initiative (AGRI)-Ukraine, USAID provides financial support to credit unions throughout the country — including through the USAID Liquidity Fund. Through this fund over 1,000 agribusinesses have accessed loans enabling them to get their goods to market.
In addition to providing critical access to finance, USAID supports farmers in western Ukraine with critical vegetable seed, fertilizer, and other agricultural input donations. Through AGRI-Ukraine, USAID has helped one-third of the country’s farmers through donations. For example, the All-Ukrainian Association of Communities delivered 10 tons of vegetable seeds to 476 communities across Ukraine, enabling over 200,000 households to put food on the table this year.
Since the start of Putin’s illegal war, AGRI-Ukraine has leveraged over $510 million in private sector and donor investments to Ukraine’s agriculture sector. These efforts have helped millions of farmers continue their vital work to resist Russia’s aggression while feeding Ukraine and feeding the world.
Support for a Strong, Independent Future
USAID’s support, alongside contributions from the international community — including AGRI-Ukraine partners like Japan and the Republic of Korea — plays a crucial role in empowering Ukraine’s small businesses to withstand Russia’s aggression while laying the foundation for a prosperous and democratic future.
USAID’s assistance is essential for job creation and sustaining vital goods and services, gradually reducing Ukraine’s dependence on external aid by fueling long-term economic growth.
The United States stands firmly with Ukraine and is committed to supporting its path from crisis to future opportunity.
Bank Lviv