Crop Receipts Project Ukraine, Phase II

Ukrainian farmers struggle with access to finance to boost their production due to lack of collateral and undeveloped capital markets. The first phase of the Ukraine Crop Receipt Project successfully established a financial instrument to facilitate farmers’ access to finance using the future crop as collateral. However, creditors have hit their limits and cannot facilitate more loans. To extend additional credit to farmers, creditors need to get access to fresh capital. The securitization of crop receipts will fulfill this purpose and contribute to capital market delopment.

The second phase will facilitate the development of an agricultural capital market in Ukraine through the securitization of crop receipts. Further increase of access to finance for small and medium scale farmers will be facilitated through the securitization of crop receipts which improves the liquidity of creditors. Phase II will support this process by 1) create an enabling legislative and regulatory environment for crop receipts securitization- 2) build the capacity of the financial sector and 3) improving public awareness and outreach. In addition, the project will 4) produce feasibility studies and research to develop crop receipts in other ECA markets.

The legislative/ regulatory framework for domestic an international securitization of crop receipts is established

Crop receipt register is harmonized with the national depositary system enabling crop receipts securitization

Originators and investors understand how to issue and invest in bonds backed up crop receipts and other agricultural receivables originated in Ukraine

Awareness of crop receipts securitization among key stakeholders in Ukraine and abroad is increased

Increased awareness of crop receipts issues among key stakeholders in the country

Crop receipts securitization and access to capital market finance becomes an increasingly common theme in the press

Expected results:  

Number of laws/amendments/regulations drafted/contributed to drafting

Number of new financial products/capital market instruments designed

Number of training modules and new products developed

Number of entities receiving in-depth advisory services

Number of workshops, training events, seminars, conferences, etc.

Number of participants in workshops, training events, seminars, conferences, etc.

Number of participants providing feedback on satisfaction

Number of participants reporting satisfied or very satisfied with workshops, trainings, seminars, conferences, etc.

Number of women participants in workshops, training events, seminars, conferences, etc.

Results from previous phases:  

The project facilitated the issue of over 4700 crop receipts to over 3'800 small and medium scale farmers for a total value of USD 1.2 billion over four years.

The project established a fully operational national Crop Receipt Register to promote transparency, monitor performance and allow for the exponential development of the instrument. Crop receipts have doubled each year, with the exception of the last year, where crop receipts growth rate was over 600%.

The project promoted innovation such as worldwide the first pre-harvest financing market to specifically address smaller farmer-focused value chains. At project end, 90% of crop receipts are issued by MSME covering 43 different crops.

The project developed 35 training modules and reached over 55’000 farmers. The strong digitalization campaign allowed additional farmers to benefit from crop receipt even during the COVID-19 lockdown.

Phase 2 01.12.2020 - 31.12.2024   (Active)