Improvement of financial mechanisms to support resource conservation in the agricultural sector of Ukraine

Rahib Kazimov, Vadim Levitsky, Nataliia Verniuk, Viktoriia Zhmudenko, Olga Varchenko
Received: 07.01.2025 Revised: 16.04.2025 Accepted: 25.06.2025
Retrieved from Vol. 28, No. 7, 2025 Pages: 201-216
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Abstract

The purpose of this study was to assess the effectiveness of financial mechanisms for resource conservation in the agricultural sector of Ukraine, considering regional differences and barriers to innovation. The study presented a comprehensive analysis of the effectiveness of financial mechanisms to support resource conservation in the agricultural sector of Ukraine in 2020-2024. The structure of funding was analysed by the following categories: government programmes (UAH 480 mn in 2020), regional budgets (UAH 110 mn in 2021), banking instruments (UAH 135 mn in 2022), grant mechanisms (UAH 90 mn in 2023), and private investments (UAH 205 mn in 2024). The study covered 12 regions with the most active fundraising, including Vinnytsia, Poltava, Lviv, Khmelnytskyi, Dnipro, and Cherkasy. Examples of successful projects included: drip irrigation on an area of 80 ha (Farm Enterprise “Agro-Dar”, Vinnytsia region), which reduced water consumption by 35%, strip-till on 150 ha (Peasant (Farm) Economy “Prometey”, Poltava region), which reduced diesel fuel consumption by 18% and increased moisture storage by 20%, and the introduction of a 300 kW biogas plant (Limited Liability Company “Haysynbiolab”), which covered 60% of the farm’s energy needs. In 2021, the application of biofertilisers reduced the use of mineral fertilisers by 30% without reducing yields. Pellet heating reduced energy costs by 25%, and the switch to biomass dryers reduced natural gas consumption by 40%. The average amount of funding per project in 2023 was UAH 1.73 mn, the highest in the five-year period. The need to expand access to innovative financial mechanisms for small and medium-sized producers, including agribonds, green loans, and digital subsidies, was emphasised. The expediency of creating a single digital platform with open information on all available forms of support was substantiated. The practical significance of the findings lies in their potential use to improve government programmes to support resource conservation in the agricultural sector

Keywords

energy efficiency; drip irrigation; grant funding; precision farming; environmental modernisation

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Kazimov, R., Levitsky, V., Verniuk, N., Zhmudenko, V., & Varchenko, O. (2025). Improvement of financial mechanisms to support resource conservation in the agricultural sector of Ukraine. Scientific Horizons, 28(7), 201-216. https://doi.org/10.48077/scihor7.2025.201