The creation of the fund will provide state guarantees for small and medium-sized farms. In addition, the government established the authorized capital of the fund at UAH 200M ($7.15M). Earlier, Minister of Agrarian Policy Roman Leshchenko explained that thanks to the Fund, farmers who cultivate up to 500 hectares would have guarantees from the state to obtain loans from financial institutions. The Fund will provide guarantees of up to 50% of the outstanding principal amount and is guaranteed for the term of the loan agreement, but not for more than ten years.