Manageability rather than hectares: a new approach to lending to the agricultural sector in 2026

Landlord, 16.01.2026

Natalia Porvina, Head of Agro Business Support and ESG Department at Credit Agricole Bank

In 2026, the war is no longer a temporary factor in our work with the agricultural sector. Instead, it is incorporated into our risk models, credit decision-making structure, and customer assessment approaches. This is not a theoretical approach, but rather the result of our experience in recent years, when we had to maintain financing amid high uncertainty.

Starting in 2022, our bank continued to lend to agricultural companies, leveraging a combination of government programs and cooperation with international financial organizations. It was the risk-sharing mechanisms with the EBRD and IFC that made it possible to support agribusiness at a time when access to finance was limited and risks were at their highest. As of the end of 2025, a significant portion of the funds raised under these programs was directed specifically to the agricultural sector.

At the same time, our financing priorities have changed. While in the early years of the full-scale war, the key task was to help customers get through the season and maintain liquidity, today we are looking much further ahead. The focus is on the company’s ability to plan its activities in the medium term, manage costs, work with technologies, and reduce climate and energy risks.

The Agri-agro sector is historically not homogenous in terms of creditworthiness. The difference between companies goes beyond the size of their land bank. It lies in the quality of management, transparency of financial reporting, cash flow structure, and willingness to change the business model. These factors are increasingly becoming decisive in credit decisions.

Access to financing at our bank isn’t determined by declarations or the scale of the business. It’s determined by the agricultural company’s ability to demonstrate manageability, predictability, and willingness to operate in conditions of long-term risk. Moving forward, I would like to explain how this logic works in practice at our bank and what requirements it sets for agribusiness.

Scope and logic of our work with the agricultural sector

Our approach to the agricultural sector is not based on declarations, but on practical experience working with a large number of agricultural companies in different regions of the country. As of November 2025, the volume of financing for agricultural producers in our bank exceeded UAH 8 billion. This portfolio was formed during a period of full-scale war, taking into account increased risks and limited access to capital.

Cooperation with international financial organizations played a key role in maintaining the ability to lend to the agricultural sector. The total amount of the bank’s agreements with the EBRD and the IFC as of December 2025 reached EUR 440 million. Much of these funds were directed specifically to financing agribusiness. In 2025, we signed a EUR 100 million risk-sharing agreement with the International Finance Corporation, and at the end of the year, the EBRD expanded its portfolio risk-sharing program, which will allow Ukrainian borrowers to receive additional loans of EUR 150 million.

We have also been actively working through government programs. As of January 1, 2026, financing under the “Affordable Loans 5–7–9%” program amounted to UAH 7 billion, and UAH 2.2 billion under the government portfolio guarantee program. In addition, since September 2025, UAH 75.6 million has been financed to such customers under the “Affordable Leasing 5-7-9%” program. For many customers, this financing has been critical to maintaining liquidity and getting through production seasons.

Today, our agricultural portfolio includes financing for seasonal needs, machinery and equipment upgrades, energy efficiency projects, and climate change adaptation. We have been working with agribusiness for over 15 years and currently serve more than 2,650 agricultural companies.

How we assess the manageability of agribusiness

In our credit analysis of agribusiness companies, we assume that financial indicators alone do not provide a complete picture of risk. Therefore, when working with customers, we use tools that allow us to assess the extent to which a business is capable of managing factors that directly affect its stability.

One such tool is a specialized ESG questionnaire developed by the bank’s agro-experts in collaboration with the ESG team. It is adapted to different types of businesses: crop production, livestock farming, combined farms, and processing. The customers does not receive a universal list of questions, but a form that corresponds to their specific operating model. This allows us to quickly gather relevant information without unnecessary formalities.

Based on the survey results, we generate a rating that we use for two practical purposes. The first is an internal assessment of the customer’s level of risk in terms of environmental, social, and governance factors. The second is to develop a list of specific actions that can mitigate these risks. In our practice, these may include recommendations on procedures for handling complaints from local communities, approaches to occupational safety, personnel management, or environmental processes. Each of these recommendations is practical in nature and aimed at improving business predictability.

It is imperative for us that risk identification is not an automatic stop factor for financing. If a company recognizes problem areas and is willing to work with them, we consider this a positive signal. It was based on this logic that we decided to finance a small farmer in a dangerous area near Kharkiv, despite his weak financial performance. The decisive factor was his credit discipline and willingness to fulfill his obligations even after losing equipment due to the war.

This approach allows us to work not only with “ideal” borrowers, but with businesses that demonstrate responsibility and manageability. These characteristics are key for us when making credit decisions.

Agribusiness areas we are ready to finance in 2026

In 2026, we do not look at financing the agricultural sector as a set of separate loan products. We offer comprehensive solutions. The overall business context is important to us: its structure, strategic goals, and ability to invest in sustainability. This approach shapes our financing priorities.

We work not only with companies’ current needs, but also with their investment plans. This may be a combination of financing seasonal expenses, upgrading equipment, infrastructure solutions, and projects aimed at improving production efficiency. This approach allows us to better assess risks and structure financing based on the real capabilities of the business.

We also prioritize projects related to climate change adaptation and sustainable development. In 2025, we launched a program to adapt agriculture to climate change in partnership with eAgronom and Agrosem LLC. The program targets agricultural producers who are ready to change their soil cultivation technologies and implement practices that reduce climate risks. Under this program, companies can enter into contracts, receive funding, and earn additional income from carbon certificates. In some cases, these revenues can partially or fully offset the cost of the agricultural equipment needed to change technologies.

We pay special attention to projects related to energy efficiency and reducing energy dependence. Specifically, these include solar power plant projects for the personal needs of agricultural producers. Such investments make it possible to reduce production costs and increase business predictability, which is critical in long-term financing.

Projects without clear business logic and transparent financial calculations remain less of a priority for us. We do not consider financing large investments without a detailed business plan and understanding of debt servicing sources. Practice shows that superficial planning is one of the most common reasons for loan refusals.

Stop factors vs. factors that increase the chances of financing in 2026

In 2026, financing for agricultural companies will not be tied to geography. Projects will be considered in both western and eastern regions of Ukraine, even if they involve a higher level of risk. The decisive factor is not location, but a set of parameters that determine the stability of the business.

Clear restrictions apply only to industries that are on our international group’s restrictive list. In all other cases, decisions are based on an individual assessment of the project.

The most common stopping factor remains the lack of clear business logic. Applications for significant amounts are considered if there is a business plan, cash flow calculations, and a clear vision of debt servicing sources. We have implemented a simplified approach for companies with small and medium-sized land banks, with analysis based on analytical data from our agroteam. Our goal is to provide our customers with simple, convenient, and understandable financing solutions and tools. That is why our agro experts spend a lot of time in the fields, because the closer you are to the client, the better you understand their needs, requests, and wishes.

Another area of focus is working with small farms. In 2025, the minimum land bank threshold for financing was reduced from 200 to 100 hectares, and pilot products with a simplified package of documents for customers with up to 500 hectares were launched in the Poltava and Kirovohrad regions. Subject to positive results, this practice will be extended to other regions.

A factor that significantly increases the chances of attracting financing is the position of the agricultural company itself. A business that assesses its own limitations, works with risks, and is ready for gradual changes looks much more predictable to the bank than one that relies solely on favorable market conditions. This logic determines the approach to lending to the agricultural sector in 2026.

The position of the agricultural company itself is a factor that significantly increases the chances of attracting financing. A business that recognizes its own limitations, works with risks, and is ready for gradual changes looks much more predictable to the bank than one that relies solely on favorable market conditions. This logic determines the approach to lending to the agricultural sector in 2026.