Farmers in the conflict zone will be compensated for up to 40% of the cost of their machinery
This has been reported by the press office of the Ministry of Economy.
From now on, farmers and agricultural processors with 80% or more of their land located in the combat zone will be eligible for compensation amounting to 40% of the cost of machinery and equipment (excluding VAT). For other agricultural producers, the current rate of 25% compensation remains in place.
Economy Minister Vitaliy Kindrativ noted that the expansion of the programme has a dual effect: supporting farmers in difficult conditions and stimulating demand for products from Ukrainian machinery manufacturers, which will help boost production and create jobs.
Key changes to the programme:
- 40% compensation – for farmers in frontline areas;
- 25% compensation – for other producers;
- mandatory requirement – registration in the State Agricultural Register and operation within designated communities;
- updated localisation rules – self-manufactured components, even those made from imported raw materials, can be counted towards the Ukrainian content provided they undergo sufficient processing.
The programme stipulates that 25% compensation is provided for machinery with a localisation level of at least 60%. Special conditions apply to certain categories – in particular, combine harvesters, tractors and self-propelled sprayers.
To receive compensation, farmers must select equipment from the official list on the Ministry of Economy’s website, purchase it and submit an application through an authorised bank. Currently, the list includes over 14,400 items from 166 Ukrainian manufacturers.
In 2026, UAH 1.8 billion has been allocated for the implementation of the programme. The first payments have already been approved: 382 agricultural producers will receive UAH 126.1 million based on applications submitted in late 2025 and early 2026.
