Leading agricultural public associations have appealed to the leaders of the Verkhovna Rada factions due to concerns about the latest legislative initiatives to introduce export duties on soybeans and rapeseed.
The introduction of export duties will result in temporary enrichment of processors due to falling purchase prices, a gradual reduction in soybean and rapeseed acreage, and a shift by farmers to the production of other crops. Also, according to estimates by the Center for Food and Land Use Research at the Kyiv School of Economics, the introduction of export duties will lead to a physical shortage of raw materials—processing capacity exceeding production — and to total annual losses for the country of USD400 million to USD700 million due to inefficient use of resources," is stated in the appeal.
The signatories emphasize that Ukraine already has experience with introducing export restrictions on these crops, which proved to be ineffective and harmful to Ukraine's agricultural sector and economy. In 2017, the Verkhovna Rada adopted amendments to the Tax Code, the so-called “soybean amendments,” which abolished VAT refunds on exports of soybeans and rapeseed for companies that are not direct producers. In effect, measures equivalent to 20% export duties were introduced, with the exception of large agricultural companies that were able to export independently.
These legislative changes led to a 34% reduction in soybean acreage from 1.99 million hectares (2017) to 1.32 million hectares (2021). According to estimates by the Kyiv School of Economics, farmers' losses amounted to approximately USD110 million per year. However, in May 2020, Ukrainian President Volodymyr Zelenskyi signed Law No. 466-IX, which repealed the above-mentioned “soybean amendments” and restored a level playing field for all soybean and rapeseed exporters. After the abolition of the “soybean amendments,” the acreage, production volumes, and processing volumes of soybeans and rapeseed began to grow simultaneously.
According to the signatories, the authors of the current amendments claim that farmers will not suffer from the introduced duties, as they will be allowed to export independently without paying duties, and the restrictions will only apply to traders. However, this does not correspond to reality.
“More than 75% of cultivated land in Ukraine is farmed by small and medium-sized agricultural producers. They do not have sufficient production volumes to independently form export consignments and enter foreign markets, so they work through traders and processors,” association representatives emphasize. In fact, the right to export without customs duties will remain a privilege only for large agricultural holdings, which currently export independently. Small and medium-sized farmers, who make up the majority of the market, will not benefit from this “privilege.” For them, the duty will only mean lower purchase prices and loss of profit," is mentioned in the appeal.
The authors of the appeal remind that the amendments currently being proposed were included in draft law No. 13134 and rejected by MPs at a plenary session on June 18, 2025.
The agricultural community expects members of Parliament to make balanced decisions that will not destroy the economic foundations of Ukrainian villages and will not contradict Ukraine's international obligations.
A scan of one of the letters is provided below:
