Kherson agricultural enterprises suffered catastrophic losses in wheat harvest in 2024. Due to the abnormal drought and spring frosts, some farms lost up to 100% of their crops of this key staple for ensuring Ukraine’s food security. As farmers warn, without urgent government intervention, the area under cultivation will significantly decrease, which may lead to an increase in bread prices for the population.
This is reported by Finway
Critical Situation in the South and East
In a letter to Prime Minister Denys Shmyhal, signed by leading agricultural associations, the extremely difficult situation in the sector is emphasized. Producers note that the negative effects of drought, spring frosts, and restrictions from the European Union on the export of Ukrainian agricultural products have been particularly felt in the southern and eastern regions, especially in Kherson and Dnipropetrovsk. The prolonged absence of precipitation and the inability to irrigate after the destruction of the Kakhovka Hydroelectric Power Station led to the complete or partial loss of crops on tens of thousands of hectares.
“According to a survey conducted by the All-Ukrainian Agricultural Council among farmers in Kherson, over 55 thousand hectares of crops have been lost in the region. On significant areas, losses of the key staple for food security – wheat – range from 50% to 100%”.
Due to the hostilities in Ukraine, agricultural insurance is practically non-functional, leaving most affected crops uninsured. A significant number of farms in frontline areas do not have the financial means to cover the risks of natural disasters independently.
Impact of Export Restrictions and Calls for Support
Additional difficulties for farmers have been caused by renewed EU quotas on Ukrainian agricultural exports. In the letter, farmers emphasize that the combination of these destructive factors has placed producers in a critical situation. According to reports, the area under grain cultivation and the volume of gross harvest in Ukraine have been decreasing for the fourth consecutive year: in 2024, these indicators decreased by 21% and 27% respectively compared to 2021. The forecast from the U.S. Department of Agriculture (USDA) indicates that in 2025, wheat production in Ukraine will be around 23 million tons, which is nearly 10 million tons less than four years ago.
Ukrainian farmers are appealing to the government to provide subsidies of 1 hectare for lost crops for affected farms and to implement a state program for insuring agricultural crops and perennial plantations. They state that without such measures, in the next marketing year, the area under wheat cultivation in Ukraine will inevitably decrease, leading to a reduction in exports and an increase in bread prices for Ukrainian consumers.