Opens in a new tab
News
Дата публікації: November 4, 2026

Net Support to Ukrainian Farmers Averaged Just 0.1% of Gross Farm Receipts in 2023-2025, Compared with 14.3% Across OECD Countries — KSE Institute

Published: November 4, 2026
Research
KSE Institute

Support to agricultural producers in Ukraine averaged 0.1% of gross farm receipts in 2023–2025, compared with 14.3% across countries of the Organisation for Economic Co-operation and Development (OECD). The figures are presented in the new report, “Agricultural Policy Monitoring and Evaluation 2026: Enhancing Resilience in a World of Interconnected Risks”, which examines agricultural policies in 56 countries. Analysts from the Center for Food and Land Use Research (KSE Agrocenter) contributed data and analytical material to the Ukraine chapter.

Agricultural producer support reflects government payments, tax concessions, and the effects of agricultural policies on producer prices. In Ukraine, this indicator has remained close to zero in recent years. It stood at −1.16% of gross farm receipts in 2023, increased to 0.62% in 2024, and reached 0.64% in 2025. Export restrictions affect these figures by reducing the prices farmers can receive for their products relative to international markets.

Over the past decade, domestic prices for oats, rye, sunflower, and milk in Ukraine have generally remained below international reference prices. Export restrictions have been an important factor for oats, rye, and sunflower, while market conditions have played a greater role in milk prices. Import tariffs on sugar and pig meat, by contrast, have helped maintain domestic prices above international levels. In 2023–2025, market price support and subsidies for the use of variable inputs without restrictions accounted for 40% of transfers to farmers. The OECD identifies these measures as among those with the greatest potential to distort agricultural production and trade.

The gap between Ukraine and other countries is particularly pronounced in public spending on agricultural research, infrastructure, and services. In 2023–2025, support for these purposes amounted to 0.8% of agricultural production value in Ukraine, compared with an average of 2.4% across the countries covered by the report. Most of Ukraine’s spending was directed towards inspection and control. Expenditure on agricultural knowledge and innovation has fallen by more than half relative to the sector’s size, while infrastructure spending has declined to a near-zero share of production value. Total support to agriculture amounted to 0.2% of GDP in 2023–2025, down from 0.4% two decades earlier.

In 2025–2026, Ukraine continued supporting agricultural producers operating under wartime conditions. The working-capital component of the Affordable Loans “5-7-9%” programme was extended until March 2027. For farms cultivating up to 500 hectares, the Partial Credit Guarantee Fund increased guarantee coverage from 50% to 80% of loan amounts. Access to assistance was also simplified for more than 3,000 producers across eight frontline and border regions, introducing a single payment of UAH 1,000 per hectare in areas affected by hostilities.

Additional measures focused on restoring production capacity and clearing agricultural land of mines and other explosive ordnance. In 2026, the government introduced co-financing of up to 30% of the cost of constructing fruit and vegetable storage facilities, rising to 50% in war-affected areas. The measure aims to address an estimated storage capacity shortfall of 340,000 tonnes. Support for irrigation was also expanded, including assistance for Water User Organisations. Agricultural land demining efforts grew through an increase in certified operators and greater use of electronic procurement. The GRIT platform, launched in late 2025, supports the planning and monitoring of clearance activities.

Preparing the agricultural sector for EU accession has become another important area of reform. An upgraded trade agreement between Ukraine and the EU entered into force in October 2025, expanding market access for Ukrainian agricultural and food products. Earlier that year, in April, Ukraine signed a modernised free trade agreement with the European Free Trade Association (EFTA). Agricultural support procedures are also changing: registration in the State Agrarian Register has become mandatory for most government support programmes. Ukraine is gradually introducing EU systems for collecting farm-level data, verifying agricultural payments, and monitoring the use of funds.

The future growth of Ukrainian agriculture will depend heavily on restoring transport, storage, and export infrastructure, improving access to finance, and helping producers meet European market requirements. The OECD also identifies agricultural research, the adoption of modern technologies, product quality, and access to advisory services as important priorities. Progress in these areas would help Ukrainian farmers benefit from new trade opportunities, improve productivity, and reduce their exposure to risks arising from the war and changing global market conditions.

Read the full report: https://doіi.org/10.1787/2c7f3be1-en