Agriculture

Agriculture faces serious challenges caused by the full-scale invasion, land contamination and mining, climate change, and the need to implement a large number of reforms and adapt to EU standards as part of the European integration process. The recovery of the agricultural sector must not only be economically responsible, but also ensure environmental safety and sustainability in the medium and long term.

Ukraine's agricultural model is multi-layered. Before the full-scale invasion, the total area of agricultural land in Ukraine was about 41.3 million hectares, but by 2024, the area available for use was less than 33 million hectares. According to various estimates, 6-8 million hectares are mined, or located in occupied territories or territories where active hostilities are taking place. In terms of structure, about a quarter of agricultural land is cultivated by agricultural holdings (5,000 hectares or more) and another quarter by private farms (up to 50 hectares) and micro-producers. Most of the agricultural land is concentrated in the hands of small and medium-sized agricultural producers, who form the backbone of the economy and ensure Ukraine's food security, and we are seeing a trend towards larger farms and consolidation of land plots.

Despite its significant potential, Ukraine's agricultural sector faces a number of systemic challenges. The lack of a comprehensive vision for agricultural policy, market monopolisation, the shadow economy in small-scale production, and environmental risks remain the main barriers to development. The legislative framework remains fragmented, and the process of adaptation to European standards is slow and selective. Ukraine lags significantly behind in the implementation of a number of key EU provisions, including the Nitrates, Birds and Habitats Directives, the Regulation on the prevention of deforestation (EUDR), as well as animal welfare requirements, which are necessary for exports and progress towards EU membership.

An important positive development is the approval by the Cabinet of Ministers of Ukraine, in November 2024, of the Strategy for Agriculture and Rural Development until 2030, which was prepared taking into account EU requirements, in particular, the Common Agricultural Policy, within the framework of the European integration process. One of the strategic objectives of the strategy is climate-oriented agriculture, which includes mitigating and adapting to the effects of climate change, developing organic production, a circular bioeconomy, and preventing biodiversity loss.

With the support of international partners, an assessment of the vulnerability of agriculture to climate change has been launched, which will provide the basis for a strategic document on the adaptation of the agricultural sector and the implementation of measures to support environmental practices. Research has also been launched to reduce greenhouse gas emissions and increase carbon sequestration in the agricultural sector.

In addition, in 2023, the maintenance of state registers of certification bodies and operators in the field of organic production and circulation of organic products in accordance with Ukrainian legislation was launched. A draft law has been registered in the Verkhovna Rada of Ukraine aimed at bringing the Law of Ukraine ‘On the Basic Principles and Requirements for Organic Production, Circulation and Labelling of Organic Products’ into line with the provisions of Regulation (EU) No. 2018/848 of the European Parliament and of the Council of 30 May 2018.

The recovery process opens up a unique window of opportunity for the transformation of the agricultural sector towards sustainable, environmentally friendly and socially oriented development. Agriculture can enable the reduction of greenhouse gas emissions from fossil fuel combustion through sustainable practices for the use of plant residues, animal by-products and other agricultural raw materials, while soil conservation and improvement can transform arable land from a source of greenhouse gas emissions into a source of carbon sequestration, contributing to the achievement of climate neutrality. This requires well-coordinated cooperation between all stakeholders, targeted policies, the integration of environmental standards into support programmes, and active engagement with micro and small producers, who are often overlooked by public policy but have the potential to become the backbone of sustainable transformation.

Institutional and political barriers

• Lack of systematic dialogue between stakeholders on the vision for agricultural policy and sector development.

• Delays in harmonising legislation with the EU.

• Ignoring micro and small producers in policies and planning.

• Lack of enforcement of environmental legislation in national and international support programmes.

Economic and financial barriers

• Unequal access to finance (regional imbalances, low turnover among farmers).

• High cost of transition to environmentally friendly technologies, lack of support during the transition period.

• Difficulty in attracting investment in new technologies and environmental practices.

• Insufficient state support for reducing emissions and adapting to climate change.

Structural and market barriers

• Concentration of land in large farms, displacement of small producers through farm consolidation.

• Informal activities of micro and small farms.

• Lack of cooperation between small producers.

• Problems attracting young people and women to agribusiness.

• Disproportionate impact of mobilisation for the war on small farms.

Educational and information barriers

• Low environmental awareness among small and medium-sized producers.

• Lack of mechanisms for disseminating knowledge about sustainable practices and adaptation to climate change.

• Lack of a national communication campaign on the benefits of registration, environmentally friendly production and cooperation.

Environmental and technological barriers

• Destruction of ecosystems: ploughing up meadows, self-seeded forests, steppes, coastal protection strips, pastures, wetlands, river beds and the floodplains of small rivers.

• Ignoring alternative solutions in the context of climate change (e.g. irrigation is the only solution proposed).

• Constant postponement of the implementation of European regulations related to environmental protection (Birds and Habitat Directives, Nitrates Directive, EU Regulation against deforestation, etc.). 

• Lack of adequate infrastructure for the storage of manure and the disposal of animal by-products not intended for human consumption.

Objective: To integrate sustainable approaches into the development of agriculture and rural areas through coordinated policies, support for producers and compliance with environmental standards.

1.1. Establishing regular strategic dialogue at national level on sustainable agricultural development in the context of European integration

• Regular dialogues to take into account the interests of stakeholders at different levels and from different related sectors, including representatives of agricultural producers, rural areas and environmental organisations.

1.2. Align priority areas of work in agriculture and rural development with other sectoral strategic documents, in particular:

• The Concept of the National Target Programme for Land Use and Protection (in terms of land use and reduction of the level of land degradation).

• The National Energy and Climate Plan (in terms of reducing greenhouse gas emissions).

• The Strategy for Environmental Security and Adaptation to Climate Change for the period up to 2030 (in terms of biodiversity conservation and support).

1.3. Monitoring and control of agricultural production activities for compliance with current environmental legislation (which will change as part of European integration processes)

• Monitoring compliance with current legislation by agricultural producers receiving state support.

• Developing mechanisms/instruments to support agricultural producers in introducing sustainable practices in agriculture during the transition period. 

• Adapting and implementing statutory management requirements.

1.4. Ensuring sustainable development of rural areas, in particular through support for small and medium-sized agricultural producers

• Encouraging and supporting young entrepreneurs in rural areas through tax incentives, support for start-ups, innovation, financial and other mechanisms.

• Ensuring access to land for young farmers by introducing control over land concentration at the community level.

• Creating conditions for training and exchange of experience among agricultural producers in sustainable agricultural practices.

Decisions are taken by: Ministry of Agrarian Policy and Food of Ukraine, Ministry of Environmental Protection and Natural Resources of Ukraine, Ministry of Community and Territorial Development of Ukraine, Ministry of Economy of Ukraine, local self-government bodies.

Objective: To ensure the restoration of land and preservation of soil fertility and ecosystem functions.

2.1. Introduction of sustainable approaches to the restoration of land contaminated by military operations

• Mandatory environmental assessment of the condition of demined land.

• A strategy for dealing with demined land has been developed and should be taken into account when deciding on the further use of these lands or their withdrawal from circulation. 

• Simplification of land conservation procedures for landowners, including abolishing bureaucratic processes for obtaining land management documents and implementing restoration measures. 

• Developing an effective and transparent compensation mechanism for landowners whose land is or should be conserved.

• Developing and approving a methodology for the remediation/reclamation of land that can be returned to agricultural use for food production.

2.2. Mandatory soil quality monitoring of all land

• Establishing  systematic survey, mapping and monitoring of contaminated and mined land.

• Step-by-step launch of a mandatory system for analysing and monitoring the quality and health of all soils. 

• Creation of a transparent and open database on soil quality and health.

2.3. Introduction of sustainable land use to ensure climate resilience of agriculture

• Developing a comprehensive strategy for adapting agriculture to climate change, taking into account agroecological approaches: crop rotation, cover crops, buffer zones, wetland management and other approaches.

• Defining the term “ecosystem services” in legislation, and establishing a list of ecosystem services and mechanisms for their compensation.

• Conducting an inventory of peatlands and establishing a legal regime for their use and conservation.

• Review of land reclamation development plans based on an assessment of water availability, taking into account drinking water use, climate change and other factors.

• Adoption of the draft Law ‘On the basic principles and requirements for organic production, circulation and labelling of organic products’.

2.4. Reducing dependence on agrochemicals and pesticides to ensure environmental and food security

• Developing a plan of measures to reduce the use of pesticides and agrochemicals in agricultural production and mechanisms to encourage the use of biopesticides and organic fertilisers.

• Developing an action programme to reduce nitrate pollution of water from agricultural sources.

• Ensuring control over the handling of pesticides and fertilisers and over the content of hazardous substances in food products.

Decisions are taken by: the Ministry of Agrarian Policy and Food of Ukraine, Ministry of Environmental Protection and Natural Resources of Ukraine, State Agency for Water Resources of Ukraine,  State Geocadastre, State Environmental Inspection of Ukraine, and local self-government bodies.

Objective: Ensuring the welfare of farm animals and developing sustainable livestock farming.

3.1. Introduction of farm animal welfare standards

• Developing training materials and inspection questions (checklists) for veterinary inspectors to check market operators' compliance with farm animal welfare requirements.

• Bringing the Requirements for the welfare of farm animals during transport and related operations into line with the current EU Regulation 1/2005,  taking into account the new proposal of the European Commission on animal transport and the main changes regarding maximum transport duration, space requirements and temperature during transport, among others. 

• Ensuring compliance with animal welfare laws by all market operators through state control of compliance with the requirements of EU Regulation 2017/625, and  encouraging market operators to move towards better conditions for the keeping, slaughter and transport of animals.

• Developing a mechanism for collecting and analysing data on the results of state control measures to ensure compliance with animal welfare requirements in order to optimise the frequency of such measures and ensure proper reporting to the European Commission in the future.

• Encouraging the development of sectoral policies to improve the welfare of farm animals, not only to meet EU requirements but also to create new, improved welfare standards, which would enable Ukraine to be at the forefront of qualitative and progressive change.

3.2. Development of sustainable livestock farming and reduction of the impact of livestock farming on the environment and human health

• Inclusion of innovative approaches to sustainable livestock farming, taking into account environmental and climate requirements, in the standard integrated model of a livestock farm.

• Provision of state financial support to small and medium-sized producers in implementation of climate change mitigation and adaptation practices, in particular support for pastures, manure storage facilities and technologies for its effective application to crops.

• Developing approaches to encourage cooperation among small producers, including through projects for the production and use of biogas and projects to create infrastructure for the safe storage of waste.

• Establishing environmental monitoring and control at the community level in areas with high livestock concentrations to identify and prevent pollution.

• Attracting funding to modernise infrastructure for the management of animal by-products in line with new and innovative technologies.

3.3. Implementing steps to transition to a “healthy diet”

• Inclusion of the issue of a ‘healthy diet’ in strategic documents on the development of livestock farming, the agro-industrial complex of Ukraine, the health care system, and food security, including the prioritisation of organic products and integration of plant-based diets and alternative proteins.

• Developing and adopting regulations for the introduction of organic products in public procurement for educational institutions (kindergartens and schools).

Decisions are taken by: the Ministry of Agrarian Policy and Food of Ukraine,  State Service of Ukraine for Food Safety and Consumer Protection, Ministry of Environmental Protection and Natural Resources of Ukraine, and State Environmental Inspection of Ukraine.

CEE Bankwatch, Centre for Environmental Initiatives “Ecoaction", NGO Ecosmart, Eurogroup for Animals, Information Center "Green Dossier”,  WWF-Ukraine, as well as experts from: Green Transition Office