More than twenty leading agricultural associations, including the Ukrainian Agri Council, have sent an open letter to Ukrainian Prime Minister Denys Shmyhal, stating that the situation in agriculture is critical in agriculture due to abnormal drought, spring frosts, and restrictions imposed by the European Union on Ukrainian agricultural exports.
According to the data provided in the appeal, agricultural enterprises in the southern and eastern regions, in particular Kherson and Dnipropetrovsk regions, have suffered the most damage. Due to the prolonged absence of precipitations and lack of access to irrigation (as a result of the destruction of the Kakhovka Hydroelectric Power Plant), crops on tens of thousands of hectares have been completely or partially destroyed.
“According to a survey conducted by the Ukrainian Agri Council among farmers in Kherson region, more than 55,000 hectares of crops have been destroyed in the region. In large areas, crop losses of wheat, a key crop for food security, range from 50% to 100%,” is mentioned in the appeal.
The organizations also emphasize that the vast majority of these crops were not insured, as agricultural insurance is practically non-existent in Ukraine due to the war, and the financial situation of farms in frontline areas does not allow them to bear the risks of natural disasters on their own.
At the same time, Ukrainian farmers faced new trade barriers in the European Union market. On June 6, 2025, the EU introduced so-called “safeguards” — restrictions on imports of Ukrainian agricultural products. This significantly reduced export opportunities and increased pressure on domestic prices.
“Agricultural producers are losing both in terms of volume — due to natural disasters — and in terms of price — due to trade restrictions. This combination of destructive factors puts producers in a hopeless situation,” the signatories emphasize.
In addition, the appeal mentioned that for the fourth year in a row, the area under grain crops has been declining (in 2024, it will be 21% less than in 2021), as has the gross harvest (down 27% compared to 2021). According to USDA predictions, wheat production in 2025 will amount to about 23 mln tons, which is almost 10 mln tons less than in 2021.
In this regard, agricultural associations are demanding that the Prime Minister intervene urgently to avoid an even deeper crisis:
Develop and implement a mechanism for direct state subsidies per hectare of lost crops for affected farms;
To allocate funds in the state budget for 2026 to launch a state program for insuring agricultural crops and perennial plantings in accordance with the Law of Ukraine “On the Specifics of Insurance of Agricultural Products with State Support.”
“We solemnly declare that if the government does not intervene, this will inevitably lead to a reduction in wheat acreage for the next marketing year. This means a decrease in exports and an increase in bread prices in Ukraine,” the farmers emphasized.
Such consequences could have risky social and economic implications for the entire country. Given that the agricultural sector provides up to 59% of Ukraine's foreign exchange earnings, the situation requires an urgent response at the highest level.
Farmers have also expressed their willingness to join a working group under the Cabinet of Ministers of Ukraine to develop effective and realistic solutions that will preserve the production potential of the agricultural sector.
