Recently, an event took place that laid a new vector for the development of non-state financial support for Ukrainian farmers, combining agrarian receipts and leasing.
The International Finance Corporation (IFC), in partnership with the Ukrainian Union of Lessors (UUL), has held a seminar for lessors-members of the UUL.
The purpose of the seminar was to reach the full depth and possibilities of using agrarian receipts as an additional payment when transferring machinery and equipment to agrarians for leasing.
The leasing market in Ukraine has been actively developing in recent years. And the share of agriculture in this development in terms of assets occupies the first place in the amount of 28%, overtaking the share of transport, which was 25% – according to the National Financial Services Commission in the first half of 2019). And the growth rate of leasing in agriculture amounted to 25% compared to the first half of 2018, – the source indicates. As a result of the same activities of UUL members in the first half of 2019, the share of their assets in agriculture amounted to 36% versus 37% in transport.
Such dynamics indicate an increasing demand for leasing among farmers. That is why there is a need for new opportunities for the development of leasing in the agricultural sector, namely – the use of agrarian receipts in leasing operations.
During the event, IFC specialists revealed the methodology of existing and promising business models in the agricultural machinery and equipment sector using agricultural receipts.
During the lively discussion, the participants of the event positively assessed the attraction of agricultural receipts not only as an effective risk management tool but also as an additional effective opportunity for creating unique market offers. As a result, it will make it easier for farmers to access up-to-date and highly efficient agricultural machinery and equipment.
So, we expect from the lessors new attractive leasing offers, which involve agrarian receipts. Keep up with our news – we will be sure to inform you of such suggestions from the Association members.
Reference:
Agrarian Receipts – a sales document that records the unconditional obligation of an agricultural producer to deliver agricultural produce or pay cash. The first agrarian receipts in Ukraine were issued in 2015 in Poltava region. In 2015-2017, a pilot register of agrarian receipts was worked in several regions. With the launch of the National Register of Agrarian Receipts in early 2018, the use of the instrument has been extended to the whole territory of Ukraine.
Agrarian Receipts in Ukraine Project
Kyiv, 01010, Dniprovsky Uzviz, 1st, 3rd floor
tel. 044 490 6400
fax. 044 490 6420
[email protected]
Association “Ukrainian Union of Lessors“ – established in 2005 as a voluntary association of professional participants in the leasing market. From the same year, the Association is part of the LEASEUROPE Confederation with its headquarters in Brussels, which brings together the Association of 31 European countries. The Association includes participants that generate 80% of the Ukrainian leasing portfolio.
Contacts:
+38 044 529 46 90
+38 093 381 51 00
[email protected]
www.uul.com.ua