The Ukrainian Agri Council (UAC) participated in the first thematic meeting of the Council on Entrepreneurship Support on the development of agriculture and food security, which took place on August 7, 2025, and declared its readiness to cooperate in the context of supporting the agricultural sector.

“We welcome the creation of the Council as a platform for interaction between business and government agencies. It is important that entrepreneurs can influence the regulation of the industry, and we are ready to contribute to this process. Thank you for the opportunity to be part of the dialogue with the authorities and for your efforts to support entrepreneurs,” said the UAC Chairman Andrii Dykun.

Among other issues, the meeting participants emphasized the importance of legislative regulation of the possibility of suspending loans for farmers from frontline and temporarily occupied territories during the war.

The Ukrainian Agri Council expresses its gratitude to Andrii Yermak, Head of the Office of the President of Ukraine and Chairman of the Council for Entrepreneurship Support, for the influence of this consultative and advisory body. For ensuring that the voice of business was heard by the authorities.

The President of Ukraine has signed the long-awaited law “On Amendments to the Section ‘Final and Transitional Provisions’ of the Civil Code of Ukraine,” which allows for the suspension of fines and debt collection for farmers during the period of martial law and for one year after its termination.

As part of further cooperation, the UAC is ready to participate in in-depth expert support and the development of a number of key initiatives for the industry, namely:

1. Introduction of patronage dividends for agricultural cooperatives.

The introduction of a patronage dividend mechanism, as implemented in most developed agricultural countries, will ensure financial stability and sustainable development for small and medium-sized agricultural producers. Such an instrument not only stimulates cooperation but also creates a level playing field in the agricultural market.

2. Completion of the hydraulic reclamation reform.

In the context of deteriorating climatic conditions, rising average annual temperatures, and increased evaporation, leading to an increase in the area of land suffering from moisture deficiency, this reform is strategically important for Ukraine's food security.

At the same time, the area of irrigated land in Ukraine has decreased from 2.3 million hectares in the late 1980s to 540,000 hectares at the start of the war and 134,000 hectares as of early 2025. The Ukrainian Agri Council, which has already established itself as an expert in the development and implementation of legislative changes in this area, is ready to continue to provide full support to the reform process.

3. Combating shadow markets for agricultural products.

Particular concern is about the scale of the illegal trade in milk, dairy products, vegetables, and other agricultural products, which currently remains outside the taxation and quality control system. This puts honest producers at a disadvantage, undermines confidence in domestic products, and harms the state budget.

The UAC has been actively working on the development and implementation of measures aimed at legalization of all parts of the agricultural market, in particular minimum tax obligations and export guarantees.

4. Support for entrepreneurs from temporarily occupied territories.

Thousands of Ukrainian entrepreneurs were forced to leave their homes and businesses due to the aggression of the Russian Federation. We believe it is necessary to create legal and financial mechanisms to support such entrepreneurs during their relocation, simplify the conditions for resuming their activities, and provide legal support for their claims for compensation for damages in international courts.

The Ukrainian Agri Council has confirmed its readiness to actively work with state bodies on the implementation of these initiatives in order to promote the development of agrarian business in Ukraine.

Friday, 8 August 2025

 

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