“The Ukrainian farmers can increase their production by 50% more than of today” – IFC Program Manager on financing of the agricultural sector Leah Soroka said. “But to reach this goal they should get better access to financing. Indeed, this would allow them to have access to high-quality seeds, fertilizers and other so much needed resources of high quality.
And all this will have positive impact on future yields.” In this sense, the agricultural receipts are kind of a godsend for small and medium farmers. As far as a new type of lending involves pledge agreement of the future harvest, which is convenient for the borrower and for the lender. The first gets access to logistical and financial resources, and the second one – a guarantee of loan repayment.