MADISON, Wis.–A $100,000 loan reimbursement program made possible by the Worldwide Foundation for Credit Unions’ (WFCU) Ukrainian Credit Union Displacement Fund has already provided targeted aid to 100 farmers facing a food security crisis brought on by Russia’s war in Ukraine, according to WOCCU.
Since launch in June through the World Council of Credit Unions' Credit for Agriculture Producers (CAP) Project and Ridnia, a Ukrainian NGO, 100 farmers have been reimbursed on 10% of their principal payments for agricultural loans they took out at Ukrainian credit unions from Feb. 24-April 30, according to the Worldwide Foundation.
These types of loans typically average 50,000 UAH (US $1,700).
The organization reported that Podolska Persha Fermerska Kredytna Spilka (PPFKS), a credit union headquartered in the western Ukrainian city of Kamianets-Podilskyi, has partnered with the CAP Project and specializes in providing affordable agricultural loans through a simple application process.
Two PPFKS member farmers who received loans from the credit union since the start of the war have already benefitted from the reimbursement program, the Worldwide Foundation said.
One Farmer’s Story
According to the Foundation, Boris Sohatiuk, who runs a poultry farm, faced a significant increase in feed and transportation costs, along with a reduction in poultry sales due to the war. That combination contributed to a loss in profits.
“Nevertheless, thanks to the compensation (reimbursement) received, I was able to fulfill my credit liabilities faster," Sohatiuk told the Foundation.
The Foundation also shared the story of Volodymyr Prysiazhnyi, who grows soy and buckwheat on his 20-acre plot of land, who is facing higher fuel costs and uncertainty about future sales prices as a result of the war. But the Foundation said he has managed to stay afloat due to the reimbursement fund and remains optimistic.
“Such support from the global credit cooperative community inspires hope for the future," said Prysiazhnyi.
The Next Steps
According to the Worldwide Foundation, the next stage of the program will provide reimbursement to farmers who received agricultural loans from Ukrainian credit unions between May 1 and June 30.
The $100,000 made available through the program is expected to reimburse at least 585 farmers.
Below, Volodymyr Prysiazhnyi in Ukraine.