More than twenty leading agricultural associations, including the Association of Milk Producers of Ukraine, have sent an open letter to Ukrainian Prime Minister Denys Shmyhal, declaring a critical situation in agriculture due to abnormal drought, spring frosts, and restrictions imposed by the European Union on Ukrainian agricultural exports.
According to data cited in the appeal, agricultural enterprises in the southern and eastern regions, particularly Kherson and Dnipropetrovsk oblasts, have suffered the most severe damage. Due to prolonged lack of precipitation and no access to irrigation (following the destruction of the Kakhovka HPP), crops on tens of thousands of hectares have been completely or partially lost.
"According to a survey conducted by the Ukrainian Agrarian Council among farmers in the Kherson region, over 55,000 hectares of crops have perished in the region. For wheat, a key crop for food security, harvest losses in significant areas range from 50% to 100%," the appeal states.
The organizations also emphasize that the vast majority of these crops were uninsured, as agricultural insurance is virtually non-existent in Ukraine due to the war, and the financial situation of farms in frontline zones does not allow them to bear the risks of natural disasters independently.
In parallel, Ukrainian farmers have faced new trade barriers in the European Union market. From June 6, 2025, the EU introduced so-called "safeguards" — restrictions on the import of Ukrainian agricultural products. This significantly reduced export opportunities and intensified pressure on domestic prices.
"Agricultural producers are simultaneously losing in volumes — due to natural disasters, and in price — due to trade restrictions. Such a confluence of destructive factors puts producers in a desperate situation," the signatories underline.
Furthermore, the letter notes that for the fourth consecutive year, the sown areas of grain crops are decreasing (in 2024 — 21% less than in 2021), as well as the gross harvest (minus 27% compared to 2021). Wheat production, according to USDA forecasts, will be around 23 million tonnes in 2025, almost 10 million tonnes less than in 2021.
In this regard, agricultural associations demand that the Prime Minister urgently intervene to avoid an even deeper crisis:
- Develop and implement a mechanism for direct state subsidies of 1 hectare for lost crops for affected farms;
- Allocate funds in the state budget for 2026 to launch a state program for insuring agricultural crops and perennial plantations in accordance with the Law of Ukraine "On Peculiarities of Agricultural Product Insurance with State Support."
"We state with full responsibility: if the Government does not intervene, this will inevitably lead to a reduction in wheat sown areas for the next marketing year. This means a decrease in exports and an increase in bread prices in Ukraine," the farmers emphasize.
Such consequences could have risky social and economic implications for the entire country. Given that the agricultural sector provides up to 59% of foreign currency revenues to Ukraine, the situation requires immediate response at the highest level.
Farmers also expressed their readiness to join a working group under the Cabinet of Ministers of Ukraine to develop effective and realistic solutions that will preserve the production potential of the agricultural sector.
Press Service of the Association of Milk Producers
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