Since the onset of the full-scale invasion, the economy of Ukraine has confronted new and intricate challenges that have significantly affected all industries, forced to make arduous and occasionally unanticipated decisions. All of them had to adapt their processes to these conditions and maintain operations under these new circumstances. Each industry has undergone and continues to undergo this transformation in a distinct manner, given the influence of both internal and external factors that significantly impact development.
Agriculture has been one of the sectors most severely impacted by the ongoing crisis. The occupation of territories where agriculture was a major industry, active hostilities, logistical challenges, and a high degree of uncertainty have led to a significant decline in harvests and a substantial reduction in production capacity. According to the State Statistics Service of Ukraine, the area designated for winter crops, including grain and green fodder, for the 2024 harvest is estimated at over 6.19 million hectares. This area represents a 1.1% decrease compared to the planted area for the 2023 harvest (6.26 million hectares) and a 31.9% reduction from the planted area for the 2022 harvest (9.09 million hectares).(1)
Furthermore, the challenges faced by the Ukrainian agribusiness sector have been exacerbated by several factors, including labor shortages, rising costs of fertilizers and fuel, the blockade of Black Sea ports, and declining exports.
In the face of these challenges, support from the state and donors is crucial for the survival of agricultural enterprises. To this end, on August 16, 2022, the Cabinet of Ministers of Ukraine adopted Resolution No. 918, which established the “Procedure for Utilizing Funds Allocated in the State Budget to Support Farms and Other Agricultural Producers”. This procedure delineates the mechanism for utilizing the funds allocated in the state budget under the program “Support to Farms and Other Agricultural Producers”. The program was initiated to provide budgetary subsidies and grants in several areas: financial support for land cultivation, subsidies for cattle, goats and sheep, as well as special subsidies for farms in regions where military operations have ended. The program’s primary objective is to ensure food security, stabilize the agricultural sector, and foster the development of small and medium-sized farming enterprises.
The State Budget of Ukraine for 2025 allocated over UAH 6 billion to support the agricultural sector. The funds were allocated in the following areas:
The state support gives agricultural enterprises the opportunity not only to survive but also to thrive in the face of war. To assist agricultural enterprises in monitoring market trends and implementing global sustainable development practices, the Agricultural Sector Industry Group at BDO in Ukraine is actively engaged in analyzing and forecasting market trends. In addition to supporting agrarians, we are constantly looking for opportunities to attract funding through participation in state and international programs that allow enterprises to expand their activities and improve their efficiency. Given the results and trends identified, it is advisable to pay attention to the following government and donor programs that help support agricultural enterprises in Ukraine.
The agricultural sector is critical to Ukraine’s economy and global food security. In response to the challenges posed by the war, the government is actively implementing support programs to ensure the sustainability and development of agriculture. In addition to non-repayable financial assistance, the state program “Affordable Loans 5-7-9%” is in place, which in 2025 alone was utilized by over 800 agricultural entrepreneurs for a total of more than UAH 3.7 billion. In 2024, this figure amounted to almost UAH 47 billion. These initiatives, which include financial assistance, concessional lending, and infrastructure projects, have enabled farmers to maintain their operations even in challenging conditions. International partners provide significant support by investing in Ukrainian agribusiness and facilitating its integration into global markets.
Therefore, it is advisable to allocate more resources to researching various programs and participating in them. This will generate opportunities to support and develop business, as well as to support employees and their families who continue to conduct agricultural activities and contribute to the Ukrainian economy.
Please be advised that when preparing grant applications, it is essential to adhere to the stipulated requirements of the grantors. For a thorough overview of the grant application process, please refer to our previous article.
BDO in Ukraine is well-positioned to provide expert consulting services in grant proposal preparation. The joint efforts of the state and the international community are crucial for strengthening the agricultural sector, ensuring food security, and promoting economic stability in Ukraine.
The material was prepared at the request of Liga.Zakon
Furthermore, the challenges faced by the Ukrainian agribusiness sector have been exacerbated by several factors, including labor shortages, rising costs of fertilizers and fuel, the blockade of Black Sea ports, and declining exports.
In the face of these challenges, support from the state and donors is crucial for the survival of agricultural enterprises. To this end, on August 16, 2022, the Cabinet of Ministers of Ukraine adopted Resolution No. 918, which established the “Procedure for Utilizing Funds Allocated in the State Budget to Support Farms and Other Agricultural Producers”. This procedure delineates the mechanism for utilizing the funds allocated in the state budget under the program “Support to Farms and Other Agricultural Producers”. The program was initiated to provide budgetary subsidies and grants in several areas: financial support for land cultivation, subsidies for cattle, goats and sheep, as well as special subsidies for farms in regions where military operations have ended. The program’s primary objective is to ensure food security, stabilize the agricultural sector, and foster the development of small and medium-sized farming enterprises.
The State Budget of Ukraine for 2025 allocated over UAH 6 billion to support the agricultural sector. The funds were allocated in the following areas:
- UAH 1 billion for the livestock and agro processing industry development. These funds will be generated from the Land Bank project to the state budget from auctions for the lease of state agricultural land;
- UAH 4 726 million for paying subsidies per hectare to agricultural producers and for the maintenance of cows, sheep and goats;
- UAH 200 million for the restoration and construction of reclamation systems. Another UAH 5 million will be allocated to compensate family farmers for the unified social tax. Additionally, UAH 80 million will be allocated to provide preferential interest-free loans to farmers;
- 1.37 billion for grants, particularly for gardens and greenhouses;
- UAH 1 billion for demining of agricultural land.
The state support gives agricultural enterprises the opportunity not only to survive but also to thrive in the face of war. To assist agricultural enterprises in monitoring market trends and implementing global sustainable development practices, the Agricultural Sector Industry Group at BDO in Ukraine is actively engaged in analyzing and forecasting market trends. In addition to supporting agrarians, we are constantly looking for opportunities to attract funding through participation in state and international programs that allow enterprises to expand their activities and improve their efficiency. Given the results and trends identified, it is advisable to pay attention to the following government and donor programs that help support agricultural enterprises in Ukraine.
Government programs available to farmers
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Grant for the development of horticulture, berry growing and viticulture
The Garden Grant program is implemented at the initiative of the Government of Ukraine as part of its support to the agricultural sector and is provided through the Diia portal. The grant amount is up to UAH 400 thousand per hectare. Both legal entities and individual entrepreneurs engaged in horticulture, berry growing or viticulture can apply. To participate, you must own or lease a plot of land suitable for growing crops, and submit a detailed development project with a plan for planting, maintenance, and expected results. In addition, applicants must confirm the financial viability of the project through their own resources or other funding sources. Compliance with these requirements will contribute to the efficient use of grant funds and the development of agribusiness in Ukraine. -
Grant for processing enterprise
The Grant for Processing Enterprise program was initiated by the Government of Ukraine to provide support to entrepreneurs in establishing and developing processing enterprises. The program is open to citizens of Ukraine, individual entrepreneurs, and legal entities planning to establish or develop processing enterprises. The maximum grant amount is UAH 8 million, which can be used for the purchase of equipment, its delivery and commissioning, as well as for working capital replenishment. Grant recipients are obligated to create 5 to 25 new jobs, depending on the grant amount, and ensure the operation of the enterprise for at least three years. The level of state co-financing depends on the region: for most regions, the state covers 50% of the costs, while for territories experiencing active hostilities or de-occupation, the state covers up to 80% of the costs. Applications are accepted on an ongoing basis through the Diia portal. The schedule for 2025 can be found at this link. -
Grant for greenhouse
The Greenhouse Grant program, initiated by the Government of Ukraine, aims to support the development of greenhouse farming and generate new employment opportunities. Individual entrepreneurs and legal entities that do not operate in the territories of active hostilities or the temporarily occupied territories of Ukraine are eligible to apply. Applicants must possess or have long-term lease agreement for a land plot intended for greenhouse construction, with the requirement of being used for agricultural purposes for a minimum of seven years. The amount of the grant is dependent on the size of the greenhouse: for 0.4-0.6 hectares — UAH 2 million; for 0.8-1.2 hectares — UAH 3.5 million; for 1.6-2.4 hectares — UAH 7 million, with the maximum being 70% of the project cost. Grant recipients are obligated to create a minimum of 4 permanent and 10 seasonal positions per 1 hectare of greenhouse, ensure the availability of a water intake source and irrigation system, and maintain operational continuity for a period of at least three years following the completion of construction. To apply for a grant, interested parties must complete the designated form on the Diia portal. -
Subsidy for cultivated land
From February 12, 2025, the applications are accepted for a budget subsidy per unit of cultivated land to support farmers and agricultural producers. The amount of the subsidy is UAH 4 thousand per hectare, and farms with 1 to 120 hectares of agricultural land are eligible. Funding is provided by the state budget of Ukraine and is aimed at the development of small and medium-sized farms. The program aims to increase the efficiency of agricultural production and promote the sustainable development of the country’s agricultural sector. The application can be submitted through the State Agrarian Register (SAR) under the conditions, in particular, that the farmer has not received similar support in 2024. The Law of Ukraine “On the State Budget of Ukraine for 2025” allocates UAH 4 726 million to finance this program.
In addition to ongoing programs, the government, in cooperation with international donor organizations, introduces grant competitions and programs to help farmers overcome seasonal difficulties. These programs are temporary and implemented during periods of need for specific inputs. Examples of such programs include:
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Grants to support aggregation models in berry and vegetable growing
The program was launched by the Food and Agriculture Organization of the United Nations (FAO) with the support of the EU and in cooperation with the Ministry of Agrarian Policy and Food of Ukraine for small and medium-sized agricultural enterprises. The program aims to develop aggregation models that will help farmers integrate more effectively into supply chains, improve storage and processing of products, and expand access to domestic and international markets. The total budget for the initiative is USD 150 000, and applications will be accepted through the State Agrarian Register (SAR) until March 17, 2025. Priority will be given to farms in the Lviv, Zakarpattia, Ivano-Frankivsk and Chernivtsi regions that use environmentally sustainable practices. In addition to financial support, participants will receive technical assistance, expert advice, and access to training programs. -
Assistance to Ukrainian farmers in purchasing grain seeds
FAO’s program to support small farmers in the regions of Ukraine most affected by the war. The initiative is funded by the governments of Germany and France and provides USD 1000 vouchers for the purchase of quality grain seeds. The program currently supports 550 farmers cultivating between 10 and 300 hectares in the Chernihiv, Donetsk, Kherson, Odesa, and Zaporizhzhia regions, with a focus on female farm managers and farmers operating near the front line. Applicants can submit requests for the program through the State Agrarian Register (SAR) until January 26, 2025. The program is temporary and was developed to address the seasonal needs of farmers. Those for whom the issue is relevant should take this into account and review the data for updates. -
Program providing sleeves for temporary storage of grain with a capacity of 200 tons each
The initiative has received support from the governments of Canada, Japan, and the United States, as well as the Australian charity Minderoo Foundation through USAID. The program is available to agricultural producers who cultivate 50 to 10 000 hectares in nine regions of Ukraine. The objective of the program is to provide farmers with the resources needed to store their crops. This program is a temporary initiative that was implemented during the harvest period to address the seasonal needs of farmers. For this reason, it is advisable to monitor future updates. -
Financial assistance to households engaged in agricultural activities and to small farmers Mercy Corps
The international humanitarian organization Mercy Corps, with the support of the Howard G. Buffett Foundation, has initiated the Ukraine Agriculture Support Program. This program aims to support local families and internally displaced persons affected by the war, helping them to restore their agricultural activities. Assistance is available to individuals registered in areas affected by hostilities and residing in government-controlled regions. The program’s coverage extends to Dnipropetrovska, Donetska, Zaporizka, Mykolaivska, Kharkivska, and Khersonska oblasts, with the exception of areas experiencing active hostilities or presenting a high risk to life. The average financial assistance amount is set at USD 3000 in UAH equivalent at the NBU exchange rate, with the possibility of adjusting the amount according to the needs of households. The deadline to apply is December 29, 2025. More information about the program is available here. -
Financial assistance to SMEs in the field of agriculture Mercy Corps
Another program from the international humanitarian organization Mercy Corps. This program provides assistance in restoring agricultural activities and overcoming the consequences of war for affected families, internally displaced persons, farmers and agribusinesses. The program’s target participants are small and medium-sized enterprises operating within the agricultural sector that have been adversely affected by the war and have or plan to establish cooperative relationships with small farmers or households. The average financial assistance is USD 75 000, but the amount is adjusted according to the business’s needs. The program’s coverage extends to the Dnipro, Donetsk, Zaporizhzhia, Mykolaiv, Kharkiv, and Kherson regions, with the exception of areas experiencing active hostilities or restricted access. The deadline to apply is December 29, 2025. More information on financial assistance for small agribusinesses can be found here. To find out more about financial assistance for medium-sized agribusinesses, please click on the link below.
The agricultural sector is critical to Ukraine’s economy and global food security. In response to the challenges posed by the war, the government is actively implementing support programs to ensure the sustainability and development of agriculture. In addition to non-repayable financial assistance, the state program “Affordable Loans 5-7-9%” is in place, which in 2025 alone was utilized by over 800 agricultural entrepreneurs for a total of more than UAH 3.7 billion. In 2024, this figure amounted to almost UAH 47 billion. These initiatives, which include financial assistance, concessional lending, and infrastructure projects, have enabled farmers to maintain their operations even in challenging conditions. International partners provide significant support by investing in Ukrainian agribusiness and facilitating its integration into global markets.
Therefore, it is advisable to allocate more resources to researching various programs and participating in them. This will generate opportunities to support and develop business, as well as to support employees and their families who continue to conduct agricultural activities and contribute to the Ukrainian economy.
Please be advised that when preparing grant applications, it is essential to adhere to the stipulated requirements of the grantors. For a thorough overview of the grant application process, please refer to our previous article.
BDO in Ukraine is well-positioned to provide expert consulting services in grant proposal preparation. The joint efforts of the state and the international community are crucial for strengthening the agricultural sector, ensuring food security, and promoting economic stability in Ukraine.
The material was prepared at the request of Liga.Zakon