State Budget 2025: What are the benefits for farmers?

President of Ukraine Volodymyr Zelenskyy has signed the Law "On the State Budget of Ukraine for 2025". It provides over UAH 6 billion to support the agricultural sector.

In particular, for the development of livestock and agro-processing industry, payment of subsidies per hectare to agricultural producers and for the maintenance of cows, sheep and goats, demining of agricultural land, land reclamation and grants for gardening. Namely:

- UAH 1 billion for the development of livestock and agro-processing. These are the funds that will come to the state budget from the Land Bank project from auctions for the lease of state agricultural land. The whitewashing of the land market has become a turning point for supporting the agricultural sector;

- UAH 4,726 million for the payment of subsidies per hectare to agricultural producers and for the maintenance of cows, sheep and goats;

- UAH 200 million is planned for the restoration and construction of reclamation systems. Another UAH 5 million will be allocated to compensate family farmers for the unified social tax. Also, UAH 80 million will be allocated to provide preferential interest-free loans to farmers;

- UAH 1.37 billion for grants, including for gardens and greenhouses;

- UAH 1 billion for the demining of agricultural land.

The budget also takes into account tax changes to ensure the stability of financing the Defense Forces. In terms of the agricultural sector, these changes relate to:

• the minimum amount of tax payments per hectare of agricultural land. For the period of martial law, it will be UAH 1400 per hectare for arable land and UAH 700 per hectare for land with other types of designated purpose. This will increase the transparency of relations in the agricultural sector, namely, will make it impossible to underestimate the level of tax burden and tax evasion.
• Increase the minimum price for Ukrainian-made wine products. Such changes will give more opportunities to legal domestic wine producers. Today, it is difficult for them to compete with those who sell counterfeit products.

The tax changes will come into force on December 1. "Nothing will be charged retroactively.

"In general, the state budget for 2025 is aimed at ensuring a comprehensive approach to supporting priority areas, developing critical industries and restoring the economy in times of war. And the tax changes are aimed at supporting the Defense Forces of Ukraine," said Vitalii Koval, Minister of Agrarian Policy and Food.