Investments in the Agricultural Sector of Ukraine Grew by 33%

Capital investments in the agricultural sector of Ukraine increased by 33% in the first 9 months of 2021. During the specified time, more than 33 billion hryvnias were invested. Capital investment growth in the first 9 months of 2021 is observed in all areas – 23.8%, compared to the first 3 quarters of 2020. However, in the agricultural sector, it is the most active.

This year was able to reverse the decline in capital investment. In 2019 and 2020, the volume only decreased, and in 2020, the decline occurred by 43.5% – almost twice. UKAD analyst Svitlana Lytvyn believes that this happened due to the expectation of the opening of the land market. Investors chose to prepare capital and defer investments in other projects. In addition, the weak harvest of the 2019/20 season also had a negative impact.

However, the worst expectations for the land market did not materialize, and many farmers were able to renew their leases. Therefore, the accumulated financial resources could be invested in updating the material base of farms. In addition, the harvest for the 2020/21 season was much better than the previous year, which gave an additional boost. Svetlana Litvin noted that due to good harvests, the largest part of investments was made in the third quarter, and another increase in the volume of investments is expected in the fourth quarter.