A 25% compensation program continues to operate: Ministry of Economy approves payments for 65 more units of Ukrainian agricultural machinery and equipment
The Ministry of Economy of Ukraine has approved the next allocation of funds under the 25% compensation program for Ukrainian agricultural machinery and equipment. Based on the applications submitted in May, 50 agricultural producers will receive compensation totaling over UAH 6.8 million.
"In May, another 50 agricultural enterprises applied for compensation for 65 units of Ukrainian agricultural machinery worth over UAH 27 million. The state will compensate them over UAH 6.8 million. The 25% compensation program (excluding VAT), as a tool of the “Made in Ukraine” producer promotion policy, systematically generates additional domestic demand for Ukrainian agricultural machinery and equipment, which means new orders for companies, increased production capacity and stable employment for employees. For farmers, this is an effective mechanism for updating their machinery on favorable terms. I would like to remind you that the program operates throughout the year, although applications for payments within the current budget are accepted until December 1. So there is time and opportunity to plan a purchase and receive compensation for it. But you should not hesitate," said Andriy Teliupa, Deputy Minister of Economy of Ukraine.
Agricultural producers purchased a wide range of agricultural machinery and equipment made in Ukraine: cultivators of various types, seeders, sprayers, harrows, choppers, plows, truck scales, rollers, vacuum tanker semi-trailers, fertilizer spreaders, grain elevators, storage bins, equipment for keeping dairy herds, manipulators and additional equipment.
In May, agricultural enterprises from 17 regions of Ukraine joined the program. Most applications were submitted by farmers from:
- Dnipropetrovsk region - 7 applications
- Mykolaiv region - 6 applications
- Kyiv and Cherkasy regions - 5 applications each.
Compensation payments under the submitted applications will be made through 9 banks participating in the program. The largest amounts of compensation will be transferred through:
- Ukrgasbank - UAH 2.89 million,
- PrivatBank - UAH 2.46 million,
- Ukreximbank - UAH 0.83 million.
In total, 34 banks participate in the program.
In early April, the Government changed the rules for participation in the program to compensate 25% of the cost (excluding VAT) of Ukrainian agricultural machinery and equipment: now only agricultural producers registered in the State Agrarian Register (SAR) will be eligible to use it.
In 2024, 5,311 units of machinery worth over UAH 4.2 billion were purchased under the 25% compensation program. The state compensated almost UAH 877 million.
How the program works
Compensation of 25% of the cost (excluding VAT) is provided for agricultural machinery and equipment containing at least 60% of Ukrainian materials and components. Special conditions apply to certain categories of machinery, such as combines, tractors, self-propelled sprayers and grain carriers.
To benefit from the 25% compensation program, agricultural producers must select machinery or equipment from the official list on the Ministry of Economy's website, purchase it and submit an application through an authorized bank.
As of June, the List includes 13,807 technical items from 157 manufacturers. The list is constantly expanding - 10 new manufacturers have recently joined and 524 new items have been added. The compliance of manufacturers is determined in accordance with the criteria set out in the Resolution of the Cabinet of Ministers of Ukraine No. 130 dated March 1, 2017 (as amended).
Manufacturers wishing to include their products in the list can apply for the program by submitting an application on the Ministry's official website.
The program operates in accordance with CMU Resolution 130 and is one of the tools for implementing the “Made in Ukraine” policy aimed at supporting domestic production, localization and development of industrial potential.