A more costly season with no margin for error: farmers’ expenses will rise to 650 billion hryvnias in 2026
12 January 20:22
Ukrainian agricultural producers are entering the new field season with higher production costs and minimal financial reserves. According to industry experts, spending on field operations is expected to rise by 5–10% in 2026—from last year’s nearly 600 billion hryvnia to 620–650 billion hryvnia.
These calculations are provided by the industry publication “APK-Inform,” reports "Komersant Ukrainian".
According to Oleksandr Zakharchuk, head of the Department of Investment and Material and Technical Support at the Institute of Agricultural Economics, the key financial burdens for farmers remain:
- seeds,
- pesticides,
- fuel, and fertilizers.
Experts do not forecast a sharp jump in prices, as farmers purchased a significant portion of their material and technical resources back in 2025. At the same time, expenses may rise during the season due to labor shortages, rising fuel prices, and inflationary pressure.
One of the most sensitive factors remains the cost of diesel fuel
In 2025, due to an increase in excise tax, farmers spent an additional 5.7 billion UAH on fuel, which represented a price increase of approximately 10%.
In 2026, according to Zakharchuk’s estimates, inflation could add another 10–12% to the retail price of fuel.
The situation in the mineral fertilizer market in 2025 was uneven:
- some prices stabilized,
- while others continued to rise.
In 2026, farmers plan to apply 1.8–1.9 million tons of fertilizers in active ingredient —approximately 85–90 kg per hectare, as in the previous year.
With the same volumes, their cost may rise by 5–7%, primarily due to the rising price of nitrogen fertilizers.
The rise in production costs is occurring against the backdrop of a challenging export situation. In 2025, Ukraine exported agricultural products worth $22.53 billion, which is 8.8% less than the previous year.
At the same time, grain export rates accelerated toward the end of the year, and starting in January 2026, the government began accepting applications for modular grain storage facilities for agricultural producers.
