Government expands support for farmers in frontline areas: optimised grant programme and new subsidies

The Government is bolstering support for agricultural producers in frontline regions. At its meeting on 13 August, the Cabinet of Ministers approved changes to expand financial assistance for farmers in areas of potential or active hostilities where state electronic information systems are operational.

“The Government’s decision enhances two support mechanisms for farmers in frontline regions. We are increasing the share of state funding in grants for investments in orchards and greenhouses and expanding per-hectare subsidies for areas with perennial crops for ongoing production. These new measures will help preserve jobs, maintain and expand cultivated areas, and ensure stable agricultural output,” said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.

Grants for establishing and developing horticulture, berry farming, viticulture, and greenhouse farming

The grant programme for establishing and developing horticulture, berry farming, viticulture, and greenhouse farming has introduced a unified compensation limit for planting costs – up to UAH 400,000 per hectare for all crops, with the removal of differentiated grant amounts based on crop type.

New co-financing conditions have been set:

• Up to 80% of the project cost for planting or constructing modular greenhouses – for entities registered and operating in areas of potential or active hostilities (including active hostilities where state electronic information systems are operational and for which no end date has been determined) or those owning/using land where 80% or more is located in occupied territories.
• Up to 50% of the project cost for planting or constructing modular greenhouses – for all other grants.

The remaining costs (at least 20% or 50%, respectively) are covered by recipients through their own or borrowed funds.

Per-Hectare Subsidies

Budget support has been expanded for areas with perennial crops: a subsidy of UAH 1,000 per hectare has been established for areas of potential hostilities or active hostilities where state electronic information systems are operational.

Background

Grants for establishing orchards, berry farms, vineyards, and greenhouse farming are part of the Government’s eRobota project, launched in July 2022. eRobota is a component of the Made in Ukraine policy and also includes microgrants for starting or developing businesses, grants for veterans and their families, and grants for establishing and developing processing enterprises. These programmes aim to stimulate entrepreneurial activity and job creation.