On July 1, 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 856, which amended Resolution of the Cabinet of Ministers of Ukraine of March 1, 2017, No. 130 "On Approval of the Procedure for the Use of Funds Provided in the State Budget for Partial Compensation of the Cost of Domestically Produced Agricultural Machinery and Equipment."

What exactly has changed in the procedure for partial compensation of the cost of Ukrainian agricultural machinery and equipment is explained by experts of the Ukrainian Agri Council, within the framework of a project to support Ukrainian agricultural producers from affected regions in partnership with the international humanitarian organization Mercy Corps.

According to the amendments introduced, the cost of machinery and equipment under contracts concluded between the manufacturer of such machinery and equipment and the agricultural producer, which is subject to partial compensation, may differ from the indicative price specified in the list, within 15% of the cost of the machinery and equipment.

Such a difference is allowed in the event of an increase or decrease by the manufacturer of current expenses on the purchase of units, assemblies, component products, raw materials, materials, and energy resources; labor costs for the production of the machinery and equipment; the maintenance and operation of equipment; administrative expenses; as well as the costs of selling the said machinery and equipment.

The conditions for receiving compensation in the amount of 40% of the cost of machinery and equipment, excluding value added tax, have also been clarified. This right is held by agricultural producers who, as of the date of submitting the application, have the right of ownership and/or use of land plots, 80% or more of the area of which is located in territories where hostilities are or were ongoing.

This concerns territories of possible hostilities and territories of active hostilities included in the list of territories where hostilities are or were ongoing or which were temporarily occupied by the Russian Federation, approved by an order of the Ministry of Development in the wording that was in effect as of April 7, 2026. For such territories, no date must be determined for the end of hostilities or the cessation of the possibility of hostilities.

In addition, agricultural producers must be registered in the said territories. At the same time, land plots located in temporarily occupied territories are not taken into account in the calculation.

That is, the amendments clarify that, for determining the right to compensation in the amount of 40%, the order of the Ministry of Development is taken into account specifically in the wording in effect as of April 7, 2026, and it is also taken into account that no date is determined for the end of hostilities or the cessation of the possibility of hostilities in the relevant territories. Land plots located in temporarily occupied territories do not participate in such a calculation.

To confirm the right to receive compensation in the amount of 40%, the agricultural producer must attach to the application:

• an extract from the State Agrarian Register regarding the total area of land plots that are in their ownership and/or use;
• certificates, issued by the territorial bodies of the State Geocadastre, on the total area of land plots that, as of April 7, 2026, are in their ownership and/or use and located within the relevant regions, taking into account the information contained in the State Land Cadastre. Such certificates are issued within five working days from the day of receiving the relevant request of the agricultural producer, broken down by the said territories.

Failure to submit to the territorial body of the State Geocadastre an extract from the State Agrarian Register regarding the total area of land plots that are in the ownership and/or use of the agricultural producer is grounds for refusing to issue the relevant certificate.

Also grounds for refusal is a discrepancy between the information contained in the extract from the State Agrarian Register regarding the total area of land plots in the ownership and/or use of the agricultural producer and the information of the State Land Cadastre.

In such a case, the territorial body of the State Geocadastre informs the agricultural producer of the refusal within five working days from the day of receiving the relevant request.

As a reminder, compensation is provided for agricultural machinery and equipment that contain at least 60% of Ukrainian materials and components. For certain categories of machinery, in particular combines, tractors, self-propelled sprayers, and grain trucks, special conditions apply.

To take advantage of the compensation program, agricultural producers must choose machinery or equipment from the official list on the website of the Ministry of Economy, purchase it, and submit an application through the authorized bank through which the payment for the machinery and equipment was made.

Currently, the list contains 13,680 items from more than 150 Ukrainian producers. Among the machinery and equipment are soil-cultivating and sowing machinery, harvesters (reapers), grain-cleaning and elevator equipment, grain dryers, conveyors, vehicle scales, and other equipment of Ukrainian production.

In accordance with part two of Article 24 of the Law of Ukraine "On the State Budget of Ukraine for 2026" and the Order of the Cabinet of Ministers of Ukraine of February 16, 2026, No. 157-r "Some Issues of the Distribution of Funds of the Special Fund of the State Budget in 2026," the Ministry of Economy has provided for funding under the budget program KPKVK 1201310 "Partial Compensation of the Cost of Domestically Produced Agricultural Machinery and Equipment" in the amount of UAH 1,800,000,000.

The balance of funds as of June 30, 2026, amounts to UAH 814,896,959.

The list of authorized banks that have signed a memorandum on the general principles of cooperation with the Ministry of Economy, as well as the list of domestic machinery and equipment for the agro-industrial complex, the cost of which is partially compensated at the expense of budget funds, are posted on the website of the Ministry of Economy.

As a reminder, agricultural producers can contact the UAC legal advisory line free of charge with questions arising in the operation of farms, in particular regarding the reservation of workers, confirmation of critically important status, tax accounting, land relations, and participation in state support programs.

To get a consultation, submit your request via the electronic form: https://forms.gle/v56UzTAsrD9Zrx998

For information, contact the legal advisory line at: +38 067 522-03-43

For reference:

MERCY CORPS is an international humanitarian organization that operates in more than 40 countries worldwide and provides assistance to people affected by disasters, wars, poverty, and the consequences of climate change.