REUTERS
Most of the funds will be distributed to farmers in Odesa region.
The economy ministry sees the need to allocate monetary compensation to farmers for lost crops over drought at the rate of UAH 4,500-UAH 5,000 (US$169-US$187) per hectare of affected crops, says Ukrainian Deputy Minister for Development of Economy, Trade and Agriculture Taras Vysotskyi
"We see the need to allocate non-refundable one-time aid. That is about UAH 4,500-UAH 5,000 per hectare, according to our estimates. Although there won't depend on regions, we understand that assistance to Odesa region will account for 70%-75%, or even 85% [of the funding]," the official told an online conference on May 15.
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According to Vysotskyi, the compensation tool should be as simple as possible: agricultural producers shall confirm their status, while the Ukrainian Weather Forecast Center shall additionally confirm the area of the crops that have been damaged.
At the moment, the ministry is seeking for a way to implement the idea.
"We are looking for a legal way how to do it faster. We can allocate money from a fund formed to fight against coronavirus, considering this [drought] as force majeure. There is an opportunity [to allocate] funds from the budget, but this is a longer procedure," Vysotskyi added.
As UNIAN reported earlier, farmers in Odesa region expect that grain crops will shrink by 50%, to 1.2 million tonnes, due to the spring drought. According to official figures, Ukrainian farmers lost about 234,000 hectares, or 2.6% of the total sown area under winter crops in March-April.
The economy ministry believes that rains in May will partially improve the situation with the 2020 harvest, projecting a 65-68 million tonnes gross yield.