Since Worldwide Foundation for Credit Unions (WFCU) in June tapped its Ukrainian Credit Union Displacement Fund to launch the $100,000 Agricultural Loan Reimbursement Program, the USAID/WOCCU Credit for Agriculture Producers (CAP) Project has worked with its partner credit unions to spend $60,000 to reimburse 800 member micro farmers on 10% of their principal payments for agricultural loans taken out between February 24 and September 30.
Although micro agricultural producers’ activities are mostly local and small in scale, they make a great contribution to Ukraine’s food security. Statistically, around 35% of the total country’s agricultural products are produced by micro farmers.
Amid Russia’s war against Ukraine, decreasing the financial burden on those producers is a key priority to stimulate their continued operations and ensure food is available for their local communities.
“For us, rural people, this is significant support. Using the reimbursed funds, I was able to purchase additional fodder for livestock and poultry. I am sincerely grateful for this,” said Ms. Tetiana, the owner of a small farm with 50 chickens and cows, and a member of Credit Union Koriukivska in Chernihiv Oblast.
Chernihiv Oblast is located in the north of Ukraine. It was liberated by the Ukrainian army in early April, prompting Koriukivska to restore its operations and participate in the WFCU Loan Reimbursement Program.
“Credit unions, unlike other financial institutions, do not aim to make profits, but to provide financial support and improve the well-being of their members,” added Ms. Tetiana.
The program will continue to reimburse farmers on 10% of their credit union agricultural loan principal payments until the allocated pool of funds has been fully disbursed.