The United States Agency for International Development (USAID) is providing a $1 million grant for a program aimed at supporting micro, small, and medium-sized businesses. Within the framework of this program, farmers will be able to access loans backed by crop insurance guarantees.
]This announcement was made by Paul Oliver, a representative from the USAID Office of Economic Growth, during a press conference at Ukrinform.
“USAID is allocating $1 million to the insurance company UNIVERSALNA for insuring the crops of small farmers. This insurance will serve as collateral for loans from PrivatBank for borrowers with limited access to financing,” he stated.
It is expected that the new program will provide financing for around 220 small and medium-sized agricultural producers, with an average loan amount of 2.6 million UAH. Specifically, it is planned that farmers will be able to secure loans totaling 570 million UAH.
Oleksiy Muzychko, the CEO of the insurance company UNIVERSALNA, added that the program encompasses the insurance of crops and future yields of winter wheat and rapeseed throughout the entire cultivation period, including overwintering. The harvest will be insured against over 30 major agricultural risks, including adverse weather conditions (freezing, hailstorms, heavy rainfall, etc.), plant diseases, and pests, as well as against unlawful actions by third parties (theft and others). The program does not cover insurance against war risks.
Micro, small, and medium-sized agricultural entrepreneurs from across the country, except for the occupied territories and areas close to combat zones, are eligible to participate in the program. To take part, entrepreneurs must submit an application for a loan to PrivatBank and commit to insuring the future yield. Following this, the insurance company will assess the crops and enter into an insurance contract with a premium rate of 6.4%.
Agricultural enterprises will be required to pay 0.2% of the premium rate, while the remainder will be covered through grand funds from USAID. In the event of an insured incident, the company will make insurance payouts depending on the incurred loss.
Source: AgroPortal