In 2021, the UAC will work on the implementation of initiatives that will promote the agricultural sector development. Moreover, the implementation of the planned changes will mean qualitative growth for the economy and the country in general. Currently, the UAC and the advisory center “Smart Country” (which is formed with the help of the UAC) have developed a "road map" of initiatives designed to give a significant push to the development of the entire processing cycle - agricultural production, processing and logistics. This will create conditions for further growth of both - the agricultural sector and the economy.

Development of agricultural production

Perhaps the key in this direction is the bill on land consolidation. The UAC is working on its development in conjunction with the USAID Agricultural and Rural Development Program (AGRO). Land consolidation is perhaps the most powerful factor in reducing costs in agricultural production. Abandoning of the problem across the strip ("chess") significantly reduces the cost of land cultivation and gives a significant increase in agricultural efficiency.

Reclamation reform

Today, the UAC has taken the lead role in drafting a law in this direction, working on a bill to unite water users. Taking into account serious climate changes in Ukraine, which this year made as a result - unprecedented drought in the south of the country, without this reform further agriculture development is impossible. It is one of the key projects for the agricultural sector. This is the strategic decision that will determine the growth of the agricultural sector for decades to come.

Making legal of all parts of agricultural sector is the direction of ​​work that has not just matured long ago, but needs urgent legislative decisions. UAC supports the introduction of a tax burden per 1 hectare, and will work on the implementation of this initiative in 2021. It is estimated that up to 40% of agricultural land in Ukraine is cultivated illegally. Losses of budgets of all levels from shadow tillage are estimated at UAH 60-90 billion annually.

Stimulating the development of agricultural products processing

One of the key changes in this direction is the radical simplification of procedures for connection to engineering networks. At present, this procedure takes a long time and is not completely transparent and clear. At the same time, its simplification will allow to put into operation processing capacities faster. Not only farmers need these changes, but other producers. After all, this is what will move the whole economy forward.

Development of agricultural logistics

The key in this direction is to accelerate the reform of “Ukrzaliznytsia”, which is currently deeply unprofitable. Today, “Ukrzaliznytsia” unites passenger transportation, infrastructure operator and freight transportation. There is a large subsidy of some at the expense of others. The transportation of iron ore is subsidized at the expense of farmers. Passenger traffic is subsidized at the expense of other industrial transportations. Due to unprofitability, railway modernization works are not properly funded. This state of affairs needs to be changed. The essence of the reform is in the division of the railway into an infrastructure operator and transport companies. The infrastructure operator must be responsible for the maintenance of the tracks and the establishment of a single tariff for all. Transportation companies must work separately.

A separate important direction that the analytical center “Smart Country” is working on is pension reform. The center's experts analyzed the concepts of pension reform proposed by the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, and the Ukrainian Institute of the Future and calculated their effectiveness. At the same time, the experts of the “Smart Country” developed their own proposal and offered it for discussion. The center’s experts are currently included in the working group on pension reform.

Monday, 4 January 2021


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