According to the Ministry of Agrarian Policy and Food, as of mid-May, Ukrainian farmers had sown 68.7% (9.9 million hectares) of land planned for this year.
Сurrently, the progress in sowing campaign is the following:
Sunflower – 3.29 million hectares (66% of those planned for 2022)
Corn – 3.24 mln ha (67%)
Spring (winter) wheat – 187.5 ths ha(98.8%)
Peas – 123.9 ths ha (85%)
Potatoes – 1.01 million hectares (85.2%)
Soybeans – 728.6 ths ha (58.1%)
Sugar beet – 181.4 ths ha (87.7%)
Spring rape – 26.7 ths ha (89.5%)
Buckwheat – 12.2 ths ha(14.9%)
Despite the war, 90% of the area projected for spring crops of the early group has already been sown. Moreover, Volyn, Vinnytsia, Kirovohrad and Dnipropetrovsk regions recorded an increase in spring wheat sowing by 10-15% from last year. Thus, the agricultural sector seeks to ensure food security, both domestically and in world markets.
Since March 2022, the government has introduced a number of supporting tools to ensure the smooth operation of the agriculture industry. Thus, the excise tax on fuel was abolished, value added tax on fuel and oil products was reduced from 20% to 7% and the access of agricultural producers to fuel, pesticides and agrochemicals was simplified. To reduce the burden on business, inspections were abolished and a voluntary single tax with 2% tax rate (notwithstanding the annual revenue and quantity of employees) was introduced, and export licensing of certain crops was abolished. Expanded lending programs to farmers, allocated funds to compensate for interest and provide loan guarantees to ensure affordable financing of agribusiness, extended funding programs, in particular, to finance for the purposes of ensuring sowing. The program “Affordable loans 5-7-9%” has now been expanded for large enterprises, the maximum amount of loans has been increased to UAH 60 million with 0% during the martial law. In addition, the procedure for gaining access to the state’s agricultural lands for the sowing campaign was simplified.
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