For two years, farmers have been carrying the heavy burden of war on their shoulders, but at the same time they have continued to work, providing Ukraine and the world with food.
A significant part of agricultural land was affected by Russian aggression against Ukraine, mined or contaminated. These territories amount to about 2 million hectares and have been out of production for many years. According to NASA, compared to 2022, in 2023 there is a significant decrease in the sown area in the occupied territories and an increase in abandoned arable land. Large areas of agricultural land along the front line are in bad condition and abandoned. The last year was marked by a particular crime of the Russian Federation on Ukrainian lands - the explosion of the The Kakhovka Dam, which caused at least USD2 billion in damage. According to the World Bank's latest estimates, by the end of 2023, the losses and damages suffered by Ukraine's agricultural sector amounted to more than USD80 billion.
Farmers in the occupied and liberated territories suffer the most. They have actually lost the ability to run a full-fledged business: they lack capacity, their equipment is destroyed, access to land is limited, and they have debts to banks and tax authorities. The UAC is perhaps the only active player that carefully promotes the interests of agricultural producers from the de-occupied territories and initiates programs to support business in the context of the military conflict.
Legal battlefield
The UAC's constant goal is to protect the interests of farmers at the legislative level. During the two years of war, the UAC has been actively working on legislative initiatives to create fair conditions for the agricultural sector. Active cooperation with the government and industry representatives has led to a number of important decisions in favor of agribusiness, which took into account the UAC's proposals:
- Extension of the 5-7-9 program until 2025.
- Extension of the "5-7-9" soft loan program to the territories affected by military operations.
- Adoption of the draft law "On Agricultural Notes" No. 9266
- Active work on regulating a new procedure for reserving persons liable for military service for enterprises that are critical to Ukraine's economy.
- Working on amendments to the Law No. 9015 "On Amendments to the Law of Ukraine "On Financial Mechanisms for Stimulating Export Activities" to improve export conditions for farmers.
- Support for land reclamation reform, which is critical for the restoration and development of the domestic agro-industrial complex.
- Supporting draft laws No. 10219 and No. 10220 to ensure 0% customs clearance of pickup trucks for the Armed Forces of Ukraine.
- Adoption of the draft law No. 9011-d "On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine", which guarantees payment for surplus green electricity
During the second year of the war, agricultural producers have actively made proposals and demands to simplify taxation and improve the credit system. The UAC responds to these challenges by emphasizing in its dialogues with the authorities the importance of preserving the single tax and increasing credit limits under the 5-7-9 program to UAH150 million. This is especially necessary in the context of the war and European integration. So, there is a lot of work ahead to implement the necessary changes in the legal sector.
Fighting for land
Land is the most valuable resource in the agricultural sector. Farmers do not intend to compromise in the fight for its preservation. Therefore, they are in favor of postponing the increase in land sales limits, which already amount to 10,000 hectares per person, and hope that the Cabinet of Ministers of Ukraine will reconsider this issue.
Small and medium-sized agricultural enterprises cannot compete in the land market today. They have suffered the most from the war, unlike large agricultural companies, and do not have the financial means to purchase even small plots of land. Many farmers are in the Armed Forces of Ukraine, defending the land with their blood, while others are buying it. Farmers are convinced that in a time of war and instability, it is impossible to sell large areas of land.
Therefore, the scramble for land will continue: for the military - at the front line, for the UAC - in government offices.
The international arena
Much attention was paid to international activities: in April 2023, in Rome, the UAC Chairman Andrii Dykun with the support of the Ministry of Agrarian Policy of Ukraine and the Ministry of Agriculture of Italy, signed a memorandum of cooperation with the most influential agricultural associations Coldiretti and Filiera Italia. The document provides for assistance to Ukraine, first of all, in the process of demining agricultural land and restoring damaged agricultural machinery
In August 2023, the UAC raised the problematic issues of Ukraine's agricultural sector during meetings with specialized European associations, parliamentarians and ministers. The UAC Chairman Andrii Dykun and farmers met with the Chairman of the Committee on Economics Kazis Starkevicius, the Chairman of the Committee on Foreign Affairs Žygimantas Pavilionis, the Chairman of the Committee on Rural Affairs Viktoras Pranckietis and members of these three committees at the Seimas of the Republic of Lithuania.
In January 2024, the UAC Board Member Ihor Novytskyi represented the UAC at the annual Global Forum for Food and Agriculture (GFFA) in Berlin, addressing the forum participants and agriculture ministers from 60 countries on behalf of a group of young farmers from all continents. They emphasized that food should flow into and out of conflict zones without trade and other barriers, and that agricultural land should not be sold to large corporations during wartime.
In February 2024, the UAC Chairman represented Ukraine's agricultural sector at the main event in the dairy industry in Oceania - the Australian Dairy Conference in Melbourne, Australia. He spoke about the challenges and difficulties faced by the industry during the war and the losses suffered by agricultural producers. He also showed the conference participants real footage of farms destroyed by Russia and called for support for Ukrainian farmers.
Humanitarian mission of the UAC and SaveUA
The Ukrainian Agri Council has become an active force in creating and supporting the SaveUA charity fund to help farmers and thousands of families who have survived the hardships of war. Joint efforts allowed us to raise a significant amount of funds for humanitarian aid to the victims.
During the second year of the war, the SaveUA team provided: 185,000 food packages, feeding more than 550,000 Ukrainians; more than 67,000 units of medicines and medical supplies, providing more than 70 medical institutions in 9 regions of Ukraine; 23 modern special vehicles equipped with the latest equipment for rescuers of the State Emergency Service of Ukraine engaged in humanitarian demining; 21,000 water filters; laboratory equipment for animal conservation worth USD350,000; thousands of tons of seeds and 34 generators for agricultural enterprises.
The list can be continued. But as long as the enemy is on our land, the UAC will continue to provide a strong rear and help those affected by the war.
Farmers continue to support not only the food front, but also the military. Since the first days of the war, tons of food have been sent to the front. Thanks to the members of the UAC, over the past year, the Armed Forces of Ukraine received more than 1,573 vehicles, including 1,000 pickup trucks.
Achievements under fire
Despite the war, 109 new agricultural enterprises joined the Ukrainian Agri Council during the second year of the war, a sign of trust and willingness to work together.
Commodity producers continue to cultivate land under fire, grow grains and oilseeds, process them into food, export them despite blockades of sea and land routes, and feed the world.
"The role of Ukrainian farmers in wartime goes far beyond national borders. They not only ensure Ukraine's food security, but also have a significant responsibility to the world. We are grateful to those who support the preservation of the agricultural sector during the war and are already taking care of the future recovery of the industry after the victory," said Andrii Dykun, Chairman of the UAC.
Friday, 23 February 2024