The Cabinet of Ministers of Ukraine has updated the “Procedure for using funds provided for in the state budget for partial compensation of the cost of agricultural machinery and equipment of domestic production” (Cabinet Resolution No. 130).
The relevant decision was adopted by the government at a meeting on April 3, as reported by the press service of the Ministry of Economy, Environment, and Rural Affairs.
“We have expanded the conditions of the compensation program so that local farms can operate even in difficult security situations. At the same time, this decision stimulates domestic demand for products of Ukrainian machine builders, which means additional loading of production, hundreds of new jobs, and support for the development of many related industries,” noted Vitaliy Kindrativ, Deputy Minister of Economy, Environment, and Rural Affairs.
The changes provide that:
- Farmers whose lands are located in areas of hostilities by 80% or more can receive compensation of 40% of the cost of agricultural machinery and equipment (excluding VAT) from Ukrainian manufacturers.
- For other agricultural producers, the option to receive compensation of 25% of the cost of machinery remains in effect.
Farmers registered in the State Agrarian Register and operating in communities identified by the relevant order of the Ministry of Development of Communities and Territories can participate in the program.
“Furthermore, the resolution improves the approach to determining the Ukrainian component in machinery production. Manufacturers can include components of their own production in the Ukrainian component when calculating the degree of localization, even if they are made from imported raw materials, provided sufficient processing is carried out. This decision takes into account the realities of wartime, when some materials are not available in Ukraine, and allows enterprises to continue production and participate in the program,” the ministry clarified.
In 2026, 1.8 billion UAH of funding is allocated for the program’s implementation. The state has already approved the first payment this year. Compensation totaling UAH 126.1 million will be received by 382 agricultural producers who applied in December 2025, January, and February 2026.