Ukraine is preparing compensation for farmers for lost crops

The Cabinet of Ministers of Ukraine has approved the government’s action programme, which provides for new support mechanisms for the agricultural sector. Key measures include compensation for lost crops, support for relocated producers and payments for land occupied by fortifications.

The Ministry of Agrarian Policy and Food is expected to develop a mechanism for verifying crops lost as a result of hostilities and provide compensation to affected agricultural producers. Separate compensation is also envisaged for crops damaged or lost due to natural and man-made emergencies.

The government also plans to introduce support for agricultural producers relocated from temporarily occupied territories. The programme is expected to cover agricultural production on around 30 thsd ha.

A separate mechanism will apply to land used for the construction and maintenance of fortifications. Such land is expected to be exempt from taxation, while owners and land users will receive compensation. The government expects around 70% of owners and users of such land to start receiving payments from 2027.

In addition, the government plans to expand farmers’ access to financing by allowing agricultural land lease rights to be used as collateral for agrarian notes. Overall, the programme aims to preserve the agricultural sector’s production potential and gradually expand Ukrainian producers’ access to EU agricultural support instruments.

Tags: crops, The Cabinet of Ministers of Ukraine, Ukraine, farmers, compensation