The agricultural sector of Ukraine has appealed to the government and the Verkhovna Rada to urgently address the crisis in the fertilizer market, which could jeopardize the spring planting campaign in 2026. Rising fertilizer prices, along with logistical difficulties, pose serious risks to future harvests and the economic stability of the country.
This is reported by Finway
“Prices for key nitrogen fertilizers have increased by 27-54% due to rising gas costs, increased excise taxes on diesel fuel, and supply chain complications. Domestic production of ammonium nitrate has nearly halved due to damage to industrial infrastructure, creating a shortage of about 190,000 tons. Military actions in the Middle East have intensified energy pressures, affecting the cost of agricultural production and logistics.”
Possible Consequences for Agricultural Production
According to experts from the Ukrainian Club of Agrarian Business, if the situation is not resolved soon, yields could decrease by 15-20%. This would result in a loss of tax revenues amounting to 15-18 billion hryvnias and a reduction in foreign currency earnings by up to 5 billion dollars. The cost of agricultural products will rise, and net profits for farmers could fall by 30-40%.
Proposed Steps to Stabilize the Market
The Association of Farmers proposes a set of urgent measures to support the planting campaign in 2026:
- temporarily abolish import duties on nitrogen fertilizers until the end of 2026;
- introduce preferential excise rates on diesel fuel used in agricultural machinery;
- allow the import of fertilizers via sea routes to Ukrainian ports.
Experts believe that implementing these measures will increase yields by 5-7%, generate an additional 1.5-2 billion dollars in foreign currency earnings, and strengthen the competitiveness of Ukrainian agricultural products in global markets.
It is worth noting that the escalation of the war in the Middle East is already having a direct impact on the Ukrainian agricultural sector, reflected in both rising production costs and declining external demand for grain crops from Ukraine.