State support and financing of agriculture in Ukraine in 2025: what's new and how it works for farmers
Agriculture in Ukraine remains one of the main sectors of the economy, including not only domestic food security, but also part of exports. In 2025, the state will continue to actively support farmers, implement new programs, adapting to the challenges of war and global trends. This article shows how state support and financing of agriculture in Ukraine works in 2025, some changes will occur, and farmers will be able to take advantage of the available opportunities. We will analyze the necessary program, the amount of funds allocated, the conditions for providing assistance and give practical advice for farmers.
Why is government support so important in 2025?
Ukraine is going through difficult times: recovery from the devastation, climate challenges and the need to compete with international markets require significant resources. Agriculture, despite all the problems, remains resilient. According to the Ministry of Agrarian Policy and Food of Ukraine, in 2024 the agricultural sector will account for about 60% of foreign exchange earnings from exports. However, without state assistance, many farmers, especially small and medium-sized farms, would not be able to cope with the consequences of the war, such as mined fields, destroyed infrastructure and rising fertilizer prices.
In 2025, the government sets ambitious goals: to increase production volumes, return damaged lands to circulation, and support small farms. Over 5 billion hryvnias have been allocated from the state budget for these tasks, which is 11% more than last year. Additionally, funds from international partners — the EU, the USA, and the World Bank — are being attracted, which makes support programs more diverse and accessible.
Main areas of state support in 2025
This year, state support is provided in several priority areas. Here are the key ones:
- Compensation and benefits for affected farms
One of the topics under discussion remains assistance to farmers whose land has been damaged by hostilities. A land demining program is in effect since 2025: the state reimburses up to 80% of the costs of clearing fields of explosives. This is especially relevant for the eastern and southern regions, where, if necessary, about 20% of agricultural land is still unsuitable for use. For example, a farmer from the Kherson region can receive up to 300 thousand hryvnias for demining 10 hectares if he contacts the local agricultural register. - Soft loans under the "5-7-9%" program
The program "Affordable Loans 5-7-9%", launched in 2020, continues to operate in 2025. Rates remain at 5–9% per annum, and the maximum loan amount has been increased to 90 million hryvnias for a large farm. Small farmers can count on loans of up to 5 million hryvnias with a simplified package of documents. In 2024, more than 12 thousand loans worth 25 billion hryvnias were allocated under this program, and a 15% increase is expected in 2025. The funds can be used to purchase equipment, seeds, or construction storage facilities. - Livestock subsidies
Livestock remains a priority, as countries have been hit hard by agricultural and logistical problems. In 2025, the state allocated 1.2 billion hryvnias for subsidies for milk, meat and egg producers. For example, farmers with more than 50 cows can receive up to 15 thousand hryvnias per head of livestock each year. This contributes to the restoration of livestock and an increase in domestic production. - Supporting innovation and digitalization
In 2025, the implementation of technologies in the field of e-farming is actively promoted. Farmers can receive grants of up to 1 million hryvnia for the purchase of drones, precision farming systems or farm management software. The program is co-financed by the EU, and more than 300 farms have already taken advantage of it in 2024. For example, a farmer from Vinnytsia region, who grew drones in the fields of Diptykh, reduced fertilizer costs by 20%. - Compensation for costs of machinery and equipment
The state continues to compensate up to 25% of the cost of domestic agricultural machinery. 800 million hryvnias have been allocated for this program in 2025. This allows manufacturers to update their fleet of equipment, which is especially important in the conditions of wear and tear of old machines, many of which have not been repaired since the beginning of the war.
How to get government support: step-by-step instructions
To take advantage of one of the programs, farmers must act quickly and complete the paperwork correctly. Here is a simple algorithm:
- Registration in the State Agrarian Register (SAR)
All programs are available only to registered participants. Registration is free and takes up to 3 days via the website gar.gov.ua. You need to provide data about farms, land plots and an identification code. - Program selection
is shown with a list of available programs on the website of the Ministry of Agrarian Policy or at the local administration. For example, if you are engaged in livestock farming, apply for subsidies, and if you plan to purchase a tractor on electric technology. - Preparation of documents
The standard package includes: application, passport and TIN registration, extract from the GAR, land or livestock documents, as well as a financial plan (for loans or grants). For demining, additional information from local authorities is required. - Submitting applications
Applications are submitted through the GAR or in paper form to local authorities. The processing time is up to 30 days. In 2025, the process may be simplified through the GAR mobile application, which will speed up processing. - Receiving funds
After approval, the money is transferred to the farmer's account or compensated through tax benefits. For example, the compensation for training lasts for 2 months after the purchase.
What's new in 2025?
This year, the government introduced several innovations that have already caused a wide resonance among farmers:
- Increased support for small farms : Farmers with up to 100 hectares can now qualify for additional subsidies of 10,000 hryvnias per hectare. This is in response to criticism that large agricultural holdings receive more benefits from the state program.
- "Green Farmer" Program : As part of commitments to the EU, an initiative has been launched to support organic farming. Farmers who switch to ecological standards receive grants of up to 2 million hryvnias and tax breaks.
- International grants : The World Bank has allocated $500 million to restore Ukraine's agricultural sector in 2025. Some of the measures are aimed at directly addressing the needs of farmers affected by the war.
Problems and challenges
Despite the positive changes, the support system is not without its shortcomings. Farmers often complain about bureaucracy: collecting documents takes time, and payments are sometimes delayed. In 2024, about 15% of applications were rejected due to errors in processing. In addition, small farms in remote areas have difficulties with limited access to information programs.
Another problem is insufficient funding. Although the budget has increased, experts believe that three times as much money is needed to fully restore the industry. For example, clearing all contaminated land is estimated at $35 billion, and the current program covers only a small part of this amount.
Practical tips for farmers
- Follow the news : Program terms may be changed. Subscribe to the Ministry of Agrarian Policy newsletter or join the local agricultural community.
- Join cooperatives : Cooperatives have priority in the distribution of grants and subsidies. This is especially beneficial for small farmers.
- Invest in technology : even small investments in digitalization will give you a competitive advantage and quick support.
- Consult the experts : Free consultations are available through business support centers in each country.
Future prospects
State support for agriculture in 2025 is not only a way for the industry to survive, but also an investment in its development. If the program is implemented effectively, Ukraine will be able not only to restore pre-war production volumes, but also to become a leader in niche segments, such as organic production and innovative technologies. However, success depends on the coordinated work of states, farmers, and international partners.
In 2025, farmers should actively use available opportunities to strengthen their positions. This is a time of calls, but also a time of opportunities. State support is your chance not only to overcome difficulties, but also to reach a new level.
