The Cabinet of Ministers of Ukraine, within the framework of the new eWork project, approved the procedure for providing non-refundable micro-grants for the development or creation of new horticulture, berry growing, viticulture and greenhouse facilities.
The government adopted the relevant resolution at a meeting on Tuesday, Prime Minister of Ukraine Denys Shmyhal said on his Telegram channel.
Program participants can be private entrepreneurs, agricultural companies and farms that own or lease land for a period of at least 25 years.
Thus, the amount of microgrants issued under the program of partial compensation for the cost of constructed greenhouses will be from UAH 5 to 7 million. Also, farmers will be provided with UAH 300,000 to 400,000 per hectare of orchards, which corresponds to approximately 70% of the average cost of planting them.
“The funds will go to the recipient’s bank account for the transparent purchase of seedlings, equipment, irrigation systems, fertilizers, etc.,” the prime minister summed up in the message.
With the adoption at first reading a bill, the Verkhovna Rada set the minimum rental period for agricultural land under vineyards or for laying it at 25 years.
Bill No. 2064 on amending certain legislative acts of Ukraine concerning the promotion of viticulture in Ukraine was supported by 295 MPs.
In addition, the bill establishes the pre-emptive right to renegotiate the contract after the expiration of the previous period for a person who leases land for growing vineyards and who properly fulfills the terms of the contract.
It is envisaged that upon transfer of ownership with the early termination of the right to use the land plot under viticulture, the land user should be paid reimbursement of expenses incurred for laying and caring for perennial plantations, as well as for losses incurred. The amount of losses should be determined by an independent assessment.
According to an explanatory note to the document, in recent years 21,200 hectares of new plantings were grown on farms of all forms of ownership, and 34,100 hectares were uprooted.
The problems of the development of viticulture are also associated with the high capital intensity of creating a modern vineyard (investments per 1 ha are more than UAH 100,000) and the duration of its payback. The duration of the creation of a vineyard is four years or more. The period of intensive operation of an industrial vineyard is 20-25 years.