Ukraine's state grant program aimed at bolstering agricultural development by supporting the establishment of greenhouses and fruit-berry plantations has yielded disappointing results in its first year and a half. The program, launched in July 2022, saw only 42 grants approved for greenhouses and 160 for orchards, totaling 2300 hectares.
Grants covered up to 70% of the costs for greenhouse construction or orchard planting, with maximum amounts ranging from 2 to 7 million hryvnias. However, stringent project timelines and financial oversight by authorized banks over five years posed challenges.
Despite favorable terms, farmers were reluctant to engage due to complex application procedures, high levels of scrutiny, and program management instability. Many felt constrained by program conditions, leading to distrust and diminished participation.
The leader in terms of the amount of funds received and the area of planted orchards is the Zakarpattia region, whose representatives received 29 grants. In second place is Kyiv region, where 23 applications were approved. Third is the Lviv region, where 16 farms have planted orchards with grant funds.
Zakarpattia also led in greenhouse grants, while Lviv excelled in blueberries. Kyiv region has established only five greenhouses in 1.5 years against a planned 143.
The program's effectiveness has sparked debate. Alexander Matviets, head of the "Ukrsadprom" association, emphasized that ongoing farm monitoring deters farmer-state cooperation. Farmers highlighted unattractive program conditions and lengthy approval processes as deterrents.
Despite some successes, the program's overall impact fell short of expectations. As discussions continue, policymakers aim to address issues to support agricultural growth better.
Source: epravda.com.ua