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The agricultural sector is an integral part of the Ukrainian economy and is becoming even more important in the context of post-war recovery.<\/p>\n
Legislative changes that took effect in 2024-2025<\/a> have opened new avenues for the agrarians to expand their businesses, particularly, in terms of financing, support for small agricultural enterprises, enhanced environmental standards and modernizing technologies.<\/p>\n Please find below a detailed overview of the legislative changes and their impact on the industry.<\/p>\n The Law of Ukraine \u201cOn Agrarian Notes\u201d introduces agrarian notes as a new financial instrument<\/a>. This mechanism enables farmers to attract investments secured by future harvests.<\/p>\n By pledging agrarian notes that now confirm their commitment to deliver a certain amount of products, farmers can receive funds from investors to buy fertilizers or machinery.<\/p>\n Please be advised that the Law of Ukraine \u201cOn Agrarian Notes\u201d<\/a> will be in effect in conjunction with the existing Law \u201cOn Agrarian Bonds\u201d<\/a>. This will allow market participants to choose between the two financial instruments.<\/p>\n The Laws No. 4113-IX<\/a> and No. 4015-IX<\/a> specify the protocol for ascertaining the actual selling price of extracted minerals.<\/p>\n Specifically, the selling price of extracted minerals (mineral raw materials) included in a mining company\u2019s commercial products classified under the code UKTZED 2517 is determined by the weighted average selling price (by sales volume) of the relevant type of commercial products of the mining company during the reporting period. However, this price cannot be less than USD 6.5 per ton.<\/p>\n Legislative changes of this nature are not expected to have a significant impact on most mining companies. These companies are organized around the extraction and primary processing of mineral raw materials, as well as the manufacture of commercial products in compliance with the standards and requirements for subsoil use, market pricing principles and business competitiveness.<\/p>\n Conversely, agricultural enterprises extracting water or sand for production may experience an increase in their tax obligation. For instance, the cost of water resources will rise due to the new calculation coefficients.<\/p>\n The increase in environmental tax rates (up to 15%, depending on emissions) will present a significant challenge for companies utilizing pesticides, herbicides or other chemicals.<\/p>\n This will encourage farmers to adopt greener technologies, but it will also require additional investments in modernization.<\/p>\n In addition to tighter regulation, the government has provided subsidies for small farmers. For instance, in 2025, it is planned to allocate grants for the development of farmers\u2019 cooperatives in the amount of up to UAH 500 000, subject to compliance with environmental standards.<\/p>\n As of December 1, 2024, the Cabinet of Ministers of Ukraine has abolished export licenses<\/a> for certain agricultural products, such as grains, legumes and oilseeds.<\/p>\n This decision is intended to streamline the business environment for exporters and alleviate their administrative burden.<\/p>\n In December 2024, Ukraine implemented a system of minimum export prices<\/a> for key agricultural commodities, including grains and oilseeds. This initiative aims to prevent exports at low prices and tax evasion.<\/p>\n The minimum prices are calculated using data from the State Customs Service and are updated on a monthly basis.<\/p>\n In November 2024, by the Decree of November 15, 2024 No. 1163-r<\/a>, the Government approved the Strategy for the Development of Agricultural and Agro-Industrial Territories, which defines the main directions of state policy in this area.<\/p>\n On January 31, 2025, the concept of the State Targeted Economic Program Development of Livestock was approved for the period up to 2033, as outlined in the Decree of January 31, 2025 No. 76-r<\/a>.<\/p>\n The documents outline measures to implement strategic goals, including Ukraine\u2019s European integration.<\/p>\n On February 1, 2025, the amendments<\/a> aimed at digital transformation were introduced to the procedure of phytosanitary inspection<\/a>, as established by the Resolution of the Cabinet of Ministers of Ukraine \u201cOn Amendments to the Procedure for Inspection, Overview, Phytosanitary Examination (Analysis), Repeated Phytosanitary Examination (Arbitration), Supervision, Surveillance, Monitoring, Disinfection of regulated objects, Issuance of certificates provided for by the Law of Ukraine \u201cOn Plant Quarantine\u201d<\/a>, Control over the Inspection in the Form of Sampling and Selective Control over the Phytosanitary Examination (Analysis)\u201d No. 1229.<\/p>\n The proposed amendments will contribute to the digitalization of administrative services in the field of quarantine and plant protection. Specifically, the amendments will establish clear regulations for the operation of the Public Health Information System (PHIS). These regulations will define the owner, administrator, technical administrator, users, access procedures to PHIS, the option to create a personal user account, and the use of QR codes on phytosanitary certificates.<\/p>\n The amendments aim to reduce barriers to international trade in agricultural products by introducing the electronic exchange of phytosanitary certificates and phytosanitary certificates for re-export in electronic form (ePhyto) between national plant protection organizations. The ePhyto exchange will be defined in detail through the interaction of PHIS and the international centralized information system (ePhyto HUB).<\/p>\n On January 1, 2025, the amendments to the Tax Code of Ukraine regarding taxation of agricultural enterprises came into force.<\/p>\n In particular, the procedure for calculating the minimum tax liability (MTL) for owners and tenants of agricultural land has been changed.<\/p>\n The main changes are:<\/p>\n These changes are intended to ensure fairer and more efficient taxation of agricultural land and to increase budget revenues.<\/p>\n The Cabinet of Ministers of Ukraine has decided to extend funding for the state program, which provides support to farmers who cultivate up to 120 hectares of land or maintain up to 100 cows, 500 goats, and\/or sheep.<\/p>\n The Cabinet of Ministers adopted the resolution No. 1407<\/a> \u201cOn Amendments to the Procedure for Utilizing Funds Allocated in the State Budget to Support Farms and Other Agricultural Producers\u201d on December 10, 2024.<\/p>\n Farmers will be eligible to receive such assistance:<\/p>\n Other changes<\/strong><\/p>\n In addition to the aforementioned changes, the following alterations to agricultural legislation were implemented in 2024-2025:<\/p>\n European integration regulations were adopted, for example:<\/p>\n The objective of these changes is to align Ukrainian legislation with the European standards and to ensure the sustainable development of the agricultural sector.<\/p>\n The 2024-2025 legislative changes in Ukraine\u2019s agricultural sector are a significant milestone that will contribute to the growth of a competitive and efficient agricultural sector.<\/p>\n However, it is important to note that the success of these changes will depend on their timely and high-quality implementation, as well as on the active participation of all agricultural market participants in this process.<\/p>\n BDO in Ukraine<\/a> actively supports agricultural businesses through consulting on current changes in legislation and helping to implement the best practices to achieve sustainable development. We constantly monitor legislative changes and are prepared to help your business to adapt effectively to the new environment. Contact us<\/a> for assistance and advice on doing business in the agricultural sector!<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" The agricultural sector is an integral part of the Ukrainian economy and is becoming even more important in the context of post-war recovery. Legislative changes that took effect in 2024-2025 have opened new avenues for the agrarians to expand their businesses, particularly, in terms of financing, support for small agricultural enterprises, enhanced environmental standards and […]<\/p>\n","protected":false},"author":40037,"featured_media":627913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[24,23],"tags":[],"yoast_head":"\n\n
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