The Ukrainian Agrarian Council (UAC) has warned of potential delays in agricultural land rent payments due to restrictions on Ukrainian agricultural exports through Black Sea ports. According to the association, September exports reached only around 46% of the required level. October shipments are expected to total approximately 2.4 million tonnes, while Ukraine needs to export at least 6 million tonnes per month, taking into account the new harvest and carryover stocks.
Export difficulties are leaving a significant share of agricultural production on the domestic market, putting downward pressure on purchase prices. Farmers are unable to generate sufficient revenue from grain and oilseed sales while continuing to pay for fuel, fertilisers, wages and loan servicing. According to the UAC, working capital shortages could make it difficult for agricultural businesses to meet their obligations to landowners. Ukraine has approximately 7 million landowners, many of whom rely on rental payments as an important source of household income.
Financial difficulties in the agricultural sector could also affect local government budgets. Personal income tax and the military levy are withheld from rental payments, meaning payment delays may affect tax revenues. Financing the next growing season is another challenge. According to the UAC, winter crop sowing is approximately 70% complete, while Ukraine's agricultural sector will need more than UAH 300 billion for the spring 2027 sowing campaign.
The association warns that restricted exports, low domestic prices and approaching loan repayment deadlines could place some agricultural enterprises at risk of insolvency. However, a lack of revenue from crop sales does not release tenants from their obligation to pay land rent. Payment deadlines and conditions are governed by lease agreements, and failure to comply may have legal consequences. Stable export logistics, access to financing and timely fulfilment of obligations to landowners therefore remain essential for the agricultural sector.
Original source: Ukrainian Agrarian Council — statement on the risks of delayed land rent payments