Capital investments in the agricultural sector increased by more than 30%
Capital investments in agriculture, forestry and fisheries for 9 months of 2021 increased by 33% compared to the same period last year. During the specified period, UAH 33.3 billion was invested in the agricultural sector.
This is stated in the message of the Association "Ukrainian Club of Agrarian Business".
If in general, in all sectors of Ukraine, the increase in capital investments is 23.8%, then in the agricultural sector everything is more active, and there are a number of reasons for this. A decrease in capital investment in agriculture was observed in the previous two years. So, in 2019, the decline was only 10%, and in 2020, capital investments almost halved (-43.5%), ”said Svetlana Lytvyn, analysts at UCAB.
The main reason, she said, was the expectation of the imminent opening of the land market and the corresponding accumulation of financial resources by farmers to maintain the current land bank in the event of significant trading activity, high land prices or other unpredictable circumstances. In addition, poor yields for most crops in 2020 did not have a positive impact on capital investment.
“However, given that the opening of the land market did not lead to a large number of trade operations, most farmers managed to extend land lease agreements and, accordingly, keep the land bank. Therefore, the available financial resources were used for the restoration and development of farms. And also good harvests in combination with rather high prices have added opportunities. The largest share of capital investments was made in the 3rd quarter of 2021, and in the 4th quarter we expect a further increase, ”added Svetlana Litvin.