Government Expands Compensation for Ukrainian Agricultural Machinery

The Cabinet of Ministers of Ukraine has updated its support program for farmers in frontline regions. Farmers and agri-processors whose more than 80% of land is located in combat areas will now be eligible for 40% compensation of the cost of Ukrainian agricultural machinery and equipment (excluding VAT), according to ProAgro Group.

For other producers, the 25% compensation program remains in place.

The program is part of the “Made in Ukraine” policy and aims to support farms operating under wartime conditions, as well as stimulate demand for domestically produced machinery. The decision is expected to create new jobs and support related industries.

The updated rules also reflect wartime realities: manufacturers can now count locally produced components as part of the Ukrainian content, even if they are made from imported raw materials, provided sufficient processing is carried out.

In 2026, UAH 1.8 billion has been allocated for the program.

As reported, the Ministry of Economy, Environment and Agriculture of Ukraine approved the first payments of 2026 under the 25% compensation program for domestic agricultural machinery and equipment. A total of UAH 126.1 million will be reimbursed to 382 agricultural producers who applied in December 2025 and January-February 2026.

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