This year, a significant number of farms in Ukraine are forced to cease operations, which threatens farmers' incomes and their employees' salaries, as well as the financial condition of rural communities. This is the conclusion of Yuriy Shchuklin, a member of the Logistics Committee of the European Business Association (EBA).
The expert points out that this year small farms specializing in growing grain crops have begun to exit the agricultural business. Unsold grain has accumulated in their warehouses, which complicates the repayment of loans and limits the possibilities for spring sowing. This situation is complicated by the blockade of Ukrainian agricultural exports by Russian and European partners.
Rising fuel and energy costs are also exacerbating problems in agriculture. The mobilization of workers for military service is leading to a labor shortage on many farms.
This situation can lead to social tension, as farmers not only provide jobs and income for local residents, but are also the main source of income for rural communities. The cessation of farm activities can provoke farmers' refusal to rent land, which in some cases can lead to the concentration of land resources in large agricultural companies.
Even large agricultural holdings have suffered losses from the war, but they are forced to continue crop rotation in order not to lose the markets they have developed over decades. However, this may lead to reduced spending on social programs and other areas.
