The Ukrainian AgriCouncil at its General Meeting approved an ambitious work plan for the coming years aimed at implementing strategic reforms in the agricultural sector and strengthening international activities.

The main areas of activity include:

  • developing agricultural processing by radically simplifying the procedures for connecting to engineering chains and passing environmental impact assessments;
  • continuation of irrigation reform and development of Water Users Organizations to improve water use efficiency in the agricultural sector;
  • introducing a procedure for consolidation of agricultural land, including forced automatic consolidation, which will help to optimize the use of land resources;
  • reducing the price of domestic fertilizers by reducing the cost of gas for producers, which will help reduce production costs;
  • allowing private traction in railway transportation and equalizing freight tariffs for all categories of cargo, which will promote competition and improve logistics;
  • amend the methodology for calculating the nominative monetary valuation (NMV) of land plots and adjust the NMV in arid regions;
  • establishing rules of interaction between retail chains and food suppliers to improve the conditions of cooperation and protect the interests of producers;
  • reducing the land purchase limit to no more than 1,000 hectares per person by the end of the war to prevent excessive concentration of land in one person's hands;
  • preserving the “5-7-9%” program for farmers with an increase in funding limits to UAH 150 million, which will facilitate access to credit resources;
  • ensuring an effective credit interest rate for the agricultural sector of no more than 5%, which will facilitate development and new investments in the agricultural sector;
  • developing the market for agricultural receipts to increase the financial stability of farmers and ensure access to capital;
  • introducing an automated procedure of postponement of workers from military service (e-Booking), as well as extending the period for which employees can be postponed from military service from 6 to 12 months.
  • maintaining a simplified taxation system for farmers - a single tax of the fourth group.
  • introducing patronage dividends in cooperatives and taxing them at the level of a cooperative member.
  • eliminating ‘gaps’ and simplifying the regulation of fuel storage by farmers, as well as reducing the level of penalties.

This set of measures is aimed at the comprehensive development of Ukraine's agricultural sector, improving the business environment, and ensuring sustainable agricultural development. We are confident that the approved reforms will allow Ukrainian farmers to become more competitive on the international market and ensure stability and prosperity in the face of current challenges. Our initiatives, from supporting water use to developing fertilizer processing and reducing the cost of fertilizers, are aimed at creating more favorable conditions for all agricultural market participants. Particular attention will be paid to supporting the war-affected areas, which will allow them to maintain economic activity and ensure recovery in the future,” said Andrii Dykun, the UAC Chairman.

In terms of supporting affected farmers:

  1. adoption of the draft law No. 11180-1, which freezes loans to enterprises that are currently occupied until the end of the war.
  2. provide occupied farmers with a targeted subsidy to participate in auctions for the lease of state-owned land plots.
  3. establish a targeted subsidy for farmers working in the areas of active and possible hostilities.
  4. exemption from personal income tax on salaries of employees in the areas of active and possible hostilities.

These measures are part of a comprehensive plan that will contribute to the stable development of the agricultural sector, increase the efficiency of resource use and create conditions for the long-term prosperity of Ukrainian agriculture.

Tuesday, 28 May 2024

 

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