Головна Economics and agricultural policy Capital investments in the agricultural sector increased by 33% in 9 months...

Capital investments in the agricultural sector increased by 33% in 9 months of 2021

In the first 9 months of 2021 capital investment in agriculture, forestry and fisheries of Ukraine has increased by 33% compared to the same period last year.

During this period 33.3 billion UAH were invested in agriculture, ProAgro Group quotes the information of the Ukrainian Club of Agrarian Business.

If in general in all sectors of Ukraine the growth of capital investment amounts to 23,8%, the agricultural sector is more active, and there are several reasons for that.

Decrease of capital investments in agriculture was observed two previous years. In 2019, for example, the drop was only 10%, and in 2020, capital investment almost halved (-43.5%).

The main reason was the anticipation of the imminent opening of the land market and the corresponding accumulation of financial resources by farmers to maintain the current land bank at that time in the event of significant trading activity.

However, given that the opening of the land market did not result in a large number of trade transactions, most farmers were able to extend their land leases and thus retain their land bank. Therefore, the available financial resources were used to restore and develop farms this year.

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