2026 Sowing Campaign: Agricultural Costs to Rise by 5–10% Due to Resource Price Increases
In 2026, Ukraine’s agricultural sector faces further increases in production costs amid wartime risks and high production expenses. Despite the lack of forecasts for a sharp rise in resource prices, experts are noting a trend towards higher overall costs for fieldwork.
This is reported by AgroReview
Main Expenses for Agricultural Enterprises in the New Season
According to researchers, this year domestic agricultural producers will spend between 620 and 650 billion hryvnias on a range of spring fieldwork. This is 5–10% more compared to last year, when expenses were around 600 billion hryvnias. Some resources were purchased back in 2025, which somewhat alleviates the financial pressure on farmers.
The largest expense items remain fuel, fertilizers, and seeds. Due to inflationary processes, fuel prices may rise by another 10–12%, while the market for mineral fertilizers shows a steady increase in prices.
“In 2026, farmers plan to apply the same amount of mineral fertilizers as last year – 1.8–1.9 million tons in active substance, which is approximately 85–90 kg per hectare. With the same volumes, there may be a slight increase in their cost by 5–7%, influenced by the rising prices of nitrogen fertilizers,” notes Oleksandr Zakharchuk.
Seed costs traditionally account for about 10% of the total budget, equivalent to 50–60 billion hryvnias per year. As Ukraine remains dependent on imports for seeds, the exchange rate of the hryvnia and inflation significantly affect price formation. Analysts estimate that in 2026, seed prices will increase by another 10%.
An additional challenge for the agricultural business is the labor shortage, which forces companies to raise salaries by 10–15%. The increase in land rental prices also remains likely.
Cost Optimization and Risks for Farmers
Experts emphasize that farmers have the opportunity to reduce financial burdens by implementing innovative technologies and utilizing government support. However, the main risks for the sector are not only economic factors but also security challenges and weather conditions. The situation may be particularly difficult in regions adjacent to combat zones, as well as in enterprises with a shortage of reserved workers.
“Problems may primarily arise in areas where combat operations are taking place and in adjacent territories. There are also difficulties in providing agricultural enterprises with reserved workers. Additionally, weather conditions, specifically low precipitation in spring, may hinder adherence to agricultural crop cultivation technologies,” the expert concludes.
In such conditions, small and medium-sized businesses will need to carefully plan expenses and seek new approaches to production management to maintain competitiveness in the market.