Government Prepares Additional Support for Farmers in 20-Kilometer Frontline Zone – Sobolev

The Ukrainian Cabinet of Ministers is taking significant steps to create additional support mechanisms for farmers working in frontline zones, especially in particularly dangerous areas situated within 20 kilometers of the front line. This announcement was made by Oleksiy Sobolev, the Minister of Economy, Environment, and Agriculture, in a Facebook post following a meeting with representatives from the agricultural business sector.

Sobolev emphasized that the agricultural sector is a vital component of the country's economy, contributing approximately 17% to the gross domestic product (GDP). He highlighted the crucial role that agriculture plays in ensuring economic stability, export potential, and food security for Ukraine. However, in the context of war, the agricultural sector faces numerous risks associated with the destruction of production facilities and loss of crops. The situation is further complicated by a fuel crisis arising from events in the Middle East, coinciding with the onset of the spring planting campaign, which has already begun in nearly all regions of Ukraine.

The Minister stressed the importance of maintaining dialogue between the government and agricultural producers to address the most pressing issues faced by entrepreneurs. During the meeting, discussions were held on topics related to irrigation, worker reservations, logistics, and ensuring farmers have access to fuel and ammonium fertilizers. Additionally, access to radio-electronic means (REM) and other protective measures for equipment and personnel working in the fields was specifically addressed.

Oleksiy Sobolev also noted that a number of effective support tools for agricultural producers are already being implemented in Ukraine. To facilitate the recovery of agricultural producers following shelling, relevant grants are in place. Farmers who have suffered damage or destruction to their facilities can receive compensation of up to 16 million hryvnias, with the state covering 80% of the costs and the remaining 20% being the responsibility of the entrepreneur.

Furthermore, the Minister reminded stakeholders about the government program aimed at compensating for losses due to war risks, which is being implemented by the Export Credit Agency (ECA). This program includes partial compensation for property costs in 10 frontline regions, as well as reimbursement of insurance premiums.

In addition, Sobolev announced that as part of targeted support for farmers, a payment of 1,000 hryvnias per hectare is currently being used to settle debts for over 3,500 applications, totaling 1.73 billion hryvnias. He emphasized that the government understands that the existing mechanisms may not be sufficient to fully compensate for losses and meet all the needs of the agricultural sector, and therefore will continue to work on new opportunities in ongoing dialogue with agricultural producers.

It is worth noting that Prime Minister Yulia Svyrydenko, following a meeting with the agricultural business community, also reported that the government has decided to increase compensation for the purchase of Ukrainian agricultural machinery for farms operating in combat zones from 25% to 40%. Additionally, compensation for the restoration of irrigation infrastructure has been raised to 80%, and payments of 4,700 hryvnias per hectare for lost crops in the Kherson region have been established. There are also plans to launch special subsidies for the maintenance of cows, goats, and sheep through the State Agricultural Register.