Farmers will be compensated for crop losses due to the war: the government is preparing a new payment mechanism

The Ukrainian government is developing a mechanism for state compensation for farmers who lost their crops due to hostilities in frontline regions. These are farmers whose crops were destroyed or remained unharvested due to the security situation within a 50-kilometer zone from the front line or the state border with the aggressor country.

The necessary funding is planned to be included in the State Budget for 2027, and the first compensation payments are to begin in the first quarter of next year.

Who will be able to receive compensation

As reported by Deputy Minister of Economy, Environment and Agriculture of Ukraine Taras Vysotsky, the development of criteria for determining the right of farmers to receive compensation is currently underway.

During July and August, the Ministry plans to collect and verify information on actual crop losses. Based on this data, a budget request will be formed to finance the program.

According to the official, payments should be made before the start of the spring sowing campaign of 2027 so that farmers can prepare for the new agricultural season in time.

How losses will be confirmed

Modern digital tools will be used to determine the extent of losses.

In particular, losses will be confirmed using:

satellite images;

results of field surveys – where the security situation allows.

Until the final order is approved, farmers are recommended to independently record the consequences of shelling and transmit relevant information through regional military administrations.

Risky farming zones have already been identified

This year, Ukraine introduced for the first time a mechanism for determining risky farming zones, which takes into account not only natural and climatic factors, but also military risks.

Such territories have already been digitized and integrated into the State Agrarian Register, which should simplify the further administration of compensation programs.

What support can farmers receive now

While the new compensation mechanism is under preparation, farmers in frontline areas can take advantage of existing state support programs.

In particular, they have access to preferential loans under the “5–7–9%” program, which can be used to finance the autumn sowing campaign.

According to official data, about 3 thousand hectares of agricultural land have already been recorded in Ukraine, where the crop has been lost or cannot be harvested due to hostilities. These indicators will form the basis for the formation of a future compensation system.

As a reminder, earlier the Cabinet of Ministers also updated the mechanism of state support for the agricultural sector, simplifying the conditions for receiving increased compensation for the purchase of domestic agricultural machinery and equipment, in particular for farms operating in war-affected communities.