Ukraine

Ukraine’s agricultural sector, contributing 10.9% of GDP and employing 2.5 million people, faces unprecedented challenges. The 2022 Russian invasion has devastated agriculture, with 20.3% of farmland unavailable and production declining 30%. War damage totals $10.3 billion, forcing 25% of agricultural households to halt or reduce operations.

Before the war, Ukraine’s 42.7 million hectares of agricultural land supported over 15,600 enterprises, 50,000 farming households, and 3.9 million peasant farms. However, extreme land concentration persists—agroholdings like Kernel control up to 500,000 hectares, while 7 million peasants received only certificates during 1990s land reform, with 80% forced to lease their plots at below-market rates.

The 2021 land market opening, passed during COVID-19 restrictions limiting public participation, favored large operators over small farmers. While individuals initially had purchase priority, wartime conditions and limited finances prevented most peasants from buying land. Current 10,000-hectare purchase limits still enable massive concentration.

Foreign investment compounds the issue – 310 deals covering 4.2 million hectares involve 29 countries, with European investors controlling significant Ukrainian farmland. Organic farming remains minimal at 0.9% of agricultural land, dominated by large enterprises rather than family farms.

State policy historically prioritized export-oriented monoculture over rural development, creating stark inequality between agribusiness elites and struggling small producers who lack political influence.