Chamber member companies support the improvement of legislation on crop receipts initiated by Draft Law #2805-d amending the Law “On Crop Receipts” and some other legislative acts on the functioning and circulation of crop receipts (Draft Law #2805-d) and call on the Members of Parliament to vote for passing it in the first reading.
The Draft Law #2805-d aims to improve the legislation on agricultural receipts that will simplify usage, efficiency, reliability of agricultural receipts, as well as expand the scope of their use. Inter alia, proposed amendments will increase the use of agricultural receipts in the segment of agricultural products trade by:
- transferring of the instrument into the form of electronic non-issue security in order to increase its reliability and reduce the cost of registration;
- functioning of the bona fide purchaser principle. In practice, it means that a bona fide purchaser, particularly a grain trader, will not be prosecuted for debts that arose through no fault of his own;
- introduction of an enforcement procedure for “international” crop commodity receipts.
Proposed legislative amendments will have a positive impact on both the agricultural finance market and agricultural sector as a whole, particularly by:
- better conditions for cooperation between agricultural producers and creditors;
- development of access to finance for small farms, niche segments, and processors;
- saving time and other resources throughout the process of agricultural receipts application;
- timely funding that will allow the introduction of advanced technologies;
- new technologies implementation that will increase the productivity of economic entities and their income.
The Chamber member companies’ experts support Draft Law #2805-d and call upon the Verkhovna Rada of Ukraine to pass it in the first reading.
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