Farmers in Cherkasy Region Received Nearly UAH 50 Million in Compensation for Ukrainian Agricultural Machinery

In 2025, farmers in Ukraine’s Cherkasy region received nearly UAH 50 million in state compensation for purchasing Ukrainian-made agricultural machinery and equipment. According to Roman Kosenko, director of the regional Department of Agro-Industrial Development, whose figures were reported by Suspilne Cherkasy, 297 applications were submitted for 477 units of machinery.

The programme allows agricultural businesses to recover part of the cost of upgrading their machinery fleet. The standard compensation rate is 25% of the purchase price excluding VAT. In 2026, a higher rate of 40% is available to agricultural producers meeting the specified frontline-area criteria.

For Cherkasy region, nearly UAH 50 million in reimbursements represents a substantial result of participation in the programme. Across Ukraine, the scheme covers thousands of businesses and a broad range of equipment, from tillage implements and seed drills to grain dryers and grain storage systems.

What the State Compensates

Partial compensation for the cost of domestically manufactured agricultural machinery and equipment is governed by Cabinet of Ministers of Ukraine Resolution No. 130 of 1 March 2017, as amended. The programme forms part of the “Made in Ukraine” policy and, following its relaunch in 2024, supports purchases from Ukrainian agricultural machinery manufacturers.

Compensation applies to specific models included in the Ministry of Economy’s official list. A product’s Ukrainian origin alone does not establish eligibility for reimbursement. The machinery must be on the list when full payment is made, and the payment must pass through an authorised bank.

Eligible categories include planting and tillage machinery, headers, grain cleaning machines, grain dryers, conveyors, grain storage equipment and vehicle scales. The standard minimum local content requirement is 60%. Special conditions apply to certain categories, including tractors, combine harvesters and other self-propelled machines.

According to the Ministry of Economy’s announcement of 17 July 2026, the list covered 15,624 product entries from 172 Ukrainian manufacturers. Further amendments were made in September, so buyers should check the latest version before purchasing.

How the 25% Compensation Is Calculated

Reimbursement is calculated on the machinery’s price excluding VAT. This affects the actual amount the agricultural business receives.

For example, if a machine costs UAH 1.2 million including VAT at 20%, its price excluding tax is UAH 1 million. Compensation at the standard rate of 25% would therefore amount to UAH 250,000.

The buyer first pays the full purchase price and then submits the reimbursement documents. Agricultural businesses must therefore arrange financing for the entire purchase. Payment may be made using either their own funds or bank loans, provided the programme’s conditions are met.

The documents must be submitted to the same authorised bank that processed the payment. State reimbursement follows verification and the allocation of budget funds. The programme does not establish a single guaranteed payment timeframe for every purchase.

Results Across Ukraine: Nearly UAH 2.1 Billion Reimbursed Over Two Years

According to Ministry of Economy figures published on 1 April 2026, 8,600 businesses used the programme during 2024–2025. They purchased 13,700 units of machinery worth nearly UAH 9.9 billion. State reimbursements over that period totalled nearly UAH 2.1 billion.

The UAH 1.8 billion allocated for 2026 represents the programme’s budget. This differs from the funds actually transferred to farmers following the assessment of applications.

The Ministry of Economy approved the first payment of 2026 at UAH 126.1 million for 382 agricultural producers. It covered applications submitted in December 2025 and January–February 2026. Cherkasy region accounted for UAH 7.6 million of that allocation.

A later government report presents results for the period from 16 July to 20 October 2026. Under the standard 25% compensation scheme, 1,346 applications were submitted, 3,197 units of machinery were purchased, and UAH 570 million was paid out. The higher 40% compensation scheme recorded 64 applications, 126 units of machinery and more than UAH 47.5 million in payments. These figures relate to the specified reporting period rather than the full calendar year.

Who Can Receive 40% Compensation?

In April 2026, the Cabinet of Ministers expanded support for agricultural businesses operating under heightened war-related risks. Resolution No. 443 of 3 April introduced compensation of 40% of the cost of Ukrainian agricultural machinery and equipment, excluding VAT, for producers meeting the territorial requirements.

On the application date, at least 80% of the land plots owned or used by the producer must be located in officially designated areas of possible or active hostilities. The agricultural producer must also be registered in the relevant areas.

The higher rate therefore depends on both the location of the land and the business’s registration. It does not automatically apply to every enterprise in a region that includes frontline areas.

What to Check Before Purchasing Machinery

To participate, agricultural producers must be registered in the State Agrarian Register and meet the programme’s requirements. The official “Made in Ukraine” information page specifies, among other conditions, an agricultural goods share of at least 75% of turnover, the absence of overdue tax liabilities covered by the programme’s rules, and compliance with bankruptcy and sanctions restrictions.

Preparation starts with checking the model, manufacturer and supplier. When buying through a dealer, the buyer must confirm that the dealer appears on the list as a supplier for the relevant manufacturer.

Documents required by the bank include an application, proof of payment, an acceptance and transfer certificate, and confirmation of registration in the State Agrarian Register. If the machine is subject to mandatory registration, the relevant registration certificate is also required. Applicants seeking the higher rate must additionally demonstrate compliance with the territorial criteria.

Machinery purchased with compensation must be used for its intended purpose. Selling it within three years creates an obligation to repay the reimbursement.

Upgrading the Machinery Fleet and Maintaining Existing Equipment

Compensation reduces the cost of purchasing new machines, while maintaining the existing fleet requires timely replacement of worn parts and restoration of components. Agricultural businesses need to account for these expenses separately when planning their equipment requirements for the season.

Bas-Agro LLC manufactures spare parts and replacement components for agricultural machinery, including production based on a sample, drawing or part number. The company also provides machining and component restoration services, including laser cladding of mating surfaces. Finished products are shipped throughout Ukraine.

Eligibility for state compensation depends on the programme’s conditions and the inclusion of the specific product in the official list. When choosing new machinery, reimbursement should therefore be calculated for the particular model, while maintenance budgets for existing machines should reflect their actual condition.