War between Russia and Ukraine: Challenges for Farmers, Rising Costs, and Logistical Issues
The war between Russia and Ukraine, which has been ongoing for five years, has not led to a sharp decline in grain production in either country, but it has significantly complicated farmers’ operations. Currently, agricultural producers are facing increasing economic and production difficulties, including rising costs, labor shortages, and logistical constraints.
This is reported by AgroReview
Russian Agricultural Sector: Record Harvest and Decreasing Profitability
According to official information from the Russian authorities, in 2025 the country harvested about 142 million tons of grain, of which 92 million tons were wheat. This is one of the record harvests in history, which, according to officials, demonstrates the resilience of the agricultural sector even in wartime. However, the farmers themselves are more cautious in their assessments. They note that rising production costs, high interest rates on loans, and export duties significantly reduce the profitability of growing grain crops.
“Producers note that rising production costs, high interest rates on loans, and export duties significantly reduce the economic efficiency of growing grain crops.”
Moreover, grain exports in Russia are controlled by large trading companies, leading to low domestic procurement prices. This significantly reduces profitability even in the context of high yields. An additional pressure factor has been the restrictions on the import of machinery and spare parts, complicating the renewal and repair of agricultural equipment, thereby increasing operational costs.
Ukrainian Agriculture: Decrease in Sown Areas and Labor Shortage
In Ukraine, the agricultural sector is also under serious pressure. Despite harvesting about 61.8 million tons of grain in 2025, exceeding the previous year’s figures, farmers are working under constant risks associated with military actions. One of the main problems is the reduction of sown areas due to territorial losses and dangers in frontline regions. According to experts, in 2026, the area under grain crops may decrease to 11.5 million hectares.
Additionally, farmers are facing a severe shortage of qualified personnel. Many workers have been mobilized or have left for abroad, making it significantly harder to find machinists, agronomists, and seasonal workers. Production is also complicated by power supply disruptions, which necessitate the use of diesel generators, further increasing costs.
Another serious issue has been the tense situation in the Black Sea, where the number of attacks on civilian vessels is increasing. Experts predict that further escalation may lead to rising transportation insurance costs, a reduction in grain export volumes, and increased instability in the global agricultural market.