The government is confident in the future profitability of crop production and the restoration of Ukraine's agricultural complex

This year, profitability growth for all types of grain and oil crops is expected in Ukraine. However, this will become possible on the condition that the situation with security and exports by sea transport does not become more complicated, and stabilizes on the European border. The experts of the Ministry of Agrarian Policy in cooperation with the Ukrainian Agrarian Business Club with the support of the Global Fund for Disaster Risk Reduction and Recovery published the relevant conclusions.

In particular, the yield is expected to decrease by approximately 4-5% this year. However, due to the increase in electricity prices, the cost of elevator services increases. A slight increase in land rent due to the opening of the land market for legal entities is also possible.

According to the forecast, among grain crops, wheat will have the minimum profitability, while corn and barley should remain unprofitable. At the same time, it is expected that all types of oil crops will become profitable. However, if this prediction comes true, this year's profitability will still be ten times lower than before the full-scale invasion.

Regarding animal husbandry, it should be noted that experts expect a drop in the profitability of all types of animal products. This will happen because costs, particularly for feed and electricity, will rise faster than the prices of the final product.

In turn, the Ministry of Economic Development stated that the Ukrainian economy is recovering at a faster rate than previously predicted. All institutions are now revising their GDP growth estimates upwards. In the medium term, we can expect economic growth of 3.5% in 2024 and 6.8% in 2025. But even despite such estimates, the economy has greater potential for recovery. In particular, the forecasts for the main sectors of the economy have also been improved. Thus, the harvest of grain and oilseed crops will be larger than last year, and at least 50 million tons of grain and oilseed crops are expected to be exported. In addition, ahead of the big export season, which will start in November with the export of corn, Ukraine plans to introduce two insurance schemes. One will be implemented with the support of the Ukrainian Government, and the other with the support of the EBRD.

Also, the draft law "On the State Agrarian Register" was registered in the Verkhovna Rada of Ukraine. This document proposes to improve the mechanism of providing support at the expense of state and local budgets, international technical assistance, grants in agriculture or other assistance. In particular, it is possible to register for organizations of water users, subjects of the agro-industrial complex, domestic machine-building enterprises for the agro-industrial complex.

Let us add that the state budget for the current year provides for the financing of a number of state support programs that farmers will be able to use. In particular, the Ministry of Agrarian Policy plans to allocate UAH 205 million to support agricultural producers. UAH 200 million will go to support agricultural producers who use reclaimed land, and another UAH 5 million will be used to compensate family farms for the paid ESS. Another 80 million hryvnias are reserved for providing loans to farms. Another 796 million hryvnias are planned to be allocated to support farms and other producers of agricultural products. In addition, the Ministry of Economic Development plans to provide UAH 1 billion for partial compensation of the cost of domestically produced agricultural machinery and equipment. Another 3 billion hryvnias will be used to compensate costs for humanitarian demining of agricultural lands, and 1.37 billion hryvnias will be used to provide grants for business creation or development. A number of additional programs from the Ministry of Economic Development are also planned, which are aimed not only at farmers, but they can also take advantage of them. This is the provision of UAH 18 billion for the implementation of lending programs, UAH 1 billion for state incentives for the creation of industrial parks, and UAH 3 billion for supporting domestic demand for domestic goods and services.