The Cabinet of Ministers of Ukraine has approved a decision to launch a new programme to support the agricultural sector, known as the «Agrarian Thousand». It provides for compensation for the cost of purchasing mineral fertilisers and increased funding for land reclamation systems, which is particularly important for regions near the front line.
- The Cabinet of Ministers is launching the ‘Agricultural Thousand’ scheme for farmers.
- The government will reimburse the cost of mineral fertilisers.
- The maximum compensation is up to 1,000 UAH per hectare.
- Funding will be indexed annually from 2027 onwards.
The Agricultural Thousand: Key Terms of the Programme
Farmers can receive up to 1,000 UAH per hectare in non-repayable financial assistance. The programme provides funding solely for the purchase of compound mineral fertilisers manufactured in Ukraine.
- Limits and standards: The subsidy is calculated using the following formula: up to 7 tonnes of fertiliser per 100 hectares of agricultural land.
- How to apply: All processes have been digitised. Applications will be collected via the State Agricultural Register (DAR), which will minimise red tape and eliminate the risk of corruption.
The «agricultural thousand» is expected to boost demand for products from Ukrainian companies, in particular PJSC «Sumykhimprom». It will also reduce the cost of growing cereals and oilseeds for small and medium-sized farms.
A major upgrade to land reclamation and irrigation
The Cabinet of Ministers is expanding its programme to support land reclamation systems. This is part of the ongoing reform of water resources management, which includes the modernisation of irrigation systems in the Odesa region. The government is increasing the maximum amount of compensation:
- The whole of Ukraine: up to 30,000 UAH/ha.
- Frontline areas: up to 48,000 UAH/ha.
The government assures us that this initiative is not a one-off measure. The mechanism for indexing the aid will enable farmers to forecast their costs years in advance. After 2027, the amount of financial aid will be indexed annually in line with macroeconomic indicators.
Comprehensive support for the agri-food sector in Ukraine
«The »Agrarian Thousand’ programme complements the existing support measures:
- Discounts on agricultural machinery: Farmers in frontline regions receive increased compensation – 40% of the value of Ukrainian agricultural machinery.
- European grants: Applications totalling 1.1 billion UAH have been received via the DAR from small farmers under EU programmes.
