Ministry of Agrarian Policy and Food of Ukraine

Ivan Slobodianyk: The European partners are ready to provide one billion euros.


Chairman of the Ukrainian State Farmers Support Fund - Ivan Slobodianyk presented the concept of creating a payment agency to finance the agricultural sector and rural development on the basis of Ukrstatefund . The presentation took place within the national agricultural conference "How to successfully implement the agrarian reform", which held in Glukhov of Sumy region on the initiative of the legendary man – descendants of a famous sugar manufacturer, mayor of Glukhov Michel Tereshchenko. The conference was also attended by representatives of the agricultural business, experts, bankers and diplomats. 

According to Ivan Slobodianyk, the purpose of creation of such an organization is to set up a service-type structure that will provide different types of family-focused farmers with direct financial. A distinctive feature of these organizations is minimal corruption component, due to the  so-called principle of four eyes, which is reflected in the structure and job descriptions of the organization. Four eyes principle is this: one take somechooses particular documents and examines them on formal grounds, others take decisions on them and finally the last group of people make payments. Different people in these organizations are responsible for supervising. This practice takes place in each EU country.

"The recipients of such aid can be usual residents of villages, small agricultural producers, villages, small agricultural producers, who have more than 1 hectare of land in their farm, agricultural producers groups, enterprises of process manufacturing, forestry, fishing industry representatives, entrepreneurs, and even local governments. For example: 2.3 million subjects of assistance is registered in the Polish Paying Agency registry of manufacturers (as of 2015), most of them are individual persons", - said the Ukrstatefund’s Chairman.

At the same time, according to Ivan Slobodianyk, the forms of support for agricultural producers by Agency may be different, for example, direct payments of financial aid to farmers, compensation funds for investment projects, payment of subsidies, partial payment of interest on loans, payment of bonuses "young farmer". Such assistance can be issue in particular on the development of agricultural enterprises, improvement of infrastructure in rural areas, economic support in areas unsuitable for agriculture, processing of goods, and even for activities related to training and counseling.

During Ivan Slobodianyuk's speech, Justifying the need for the creation of the Agency, he drew attection of participants to the fact that the European partners are ready to give about one billion EUR to our country for support small farmers, but it needs the institutional capacity in the form of payments agency.

" We are talking about the creation of a payment agency which will not be «usual» new structure. This is a full formatting of the existing system to support the agricultural sector, the creation of institutional instruments providing the direct financial support to the agricultural sector in accordance with EU practice and requirements", - said the chairman of Ukrstatefund.