According to the Kyiv School of Economics, the full-scale Russian invasion of Ukraine caused damages to the agricultural sector of the country for the total amount of $4.29 billion or nearly 15% of its capital stock. Damage to land, infrastructure and agricultural machinery directly affects the production of agricultural products in Ukraine. Without the restoration of lost assets, Ukraine will not be able to return to its place in global food security.
About half of the destruction from the war is recorded due to the destruction or partial damage of the farmland, including unharvested winter crops – over $2.135 billion. Agricultural land has been affected by two significant types of damage – mining pollution and direct physical damage. Apart from the minefields, areas which have been subjected to active hostilities are also polluted with unexploded ordnance. An estimated $436 million are needed to inspect lands with a high risk of mining pollution and demine the affected areas. The second type of damage is physical damage to the fertile soil layer, e.g., the craters from artillery shellings and missile strikes, damage caused by the tracks of tanks and other military vehicles. Apart from the direct damage to the lands – the occupation, military actions and mining pollution limit farmers’ access to the fields and opportunities to collect the harvest. It will result in unharvested winter crops across many of the war-affected areas. Approximately 2.4 million hectares of winter crops could be unharvested, resulting in $1.435 billion in damages. The agricultural machinery and equipment are also being damaged by shellings, airstrikes, and battles taking place in close proximity. Tractors and trucks have a higher risk of being damaged than other types of farm equipment. The estimated cost of replacing and repairing the damaged machinery is $926.1 million. rf is reportedly precisely targeting elevators and other storage facilities because these damages weaken Ukrainian agricultural capacity. The general amount of damages due to the destruction of storage facilities is estimated at $272 million.
The combined estimated value of livestock loss damages exceeds $136 million. Farm animals are dying directly because of the hostilities and because of the farmers’ inability to either access the farm or get animal feed and provide animals with needed veterinary support and care. The estimated number of animals that died is 42 thousand heads of sheep and goats, 92 thousand heads of cattle, 258 thousand pigs, and over 5,700 thousand heads of poultry. While these damages reflect the destruction of tangible assets and inventories, the indirect war losses in Ukraine’s agriculture estimated at $23.3 billion. The indirect losses estimate the foregone revenue due to lower quantities of goods produced and additional costs the producers bear because of the war.
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