The war in Ukraine and its economic consequences have caused significant damage to the production and income of small farmers, which exceeded USD3.85 billion, according to a report by the UN Food and Agriculture Organization (FAO) published Monday.
“The data from this assessment will help FAO, the Ukrainian government and its partners to identify the urgent needs and geographic areas for investment and support to smallholder farmers, so that they can meet the challenges of the current situation and resume their activities quickly,” said Pierre Vauthier, Head of FAO’s office in Ukraine.
In a nationwide survey 1927 smallholders, who specialize in crop and livestock production, have a land area of up to 250 hectares and are located in 23 regions, including parts of Donetsk, Kharkiv, Kherson and Zaporizhzhia regions under the control of Ukraine, participated in the FAO survey.
Among the key factors that led to the suspension and/or reduction of farms, the FAO cited temporary cessation of activities, loss of control over farmland, death of owners and land sales caused by or related to the escalation of war.
According to the survey, the number of small producers in Ukraine has decreased by almost 80%, of which 1% are livestock producers who stopped producing small amounts of crops, and almost 7% are crop producers who stopped their production completely.
The FAO estimated the total amount of losses and losses for smallholders at USD 3.85 billion in the crop and livestock sectors.
According to the FAO, about 12% of small farms reported that some of their land was potentially contaminated by unexploded ordnance. Frontline areas were most affected, with 32% of respondents confirming this information.
Almost 90% of small crop producers reported a decrease in income, with more than 70% of them recording significant and 25% sharp declines. Small livestock producers were less affected, but more than 60% of them reported a decrease in income, with 46% citing it as significant or drastic.
According to the survey, small farmers have increased their debts compared to the same period before the war, from 6% in 2021 to 9% in 2022.
The FAO noted increased problems due to disruptions in agri-food value chains. On average, 9% of respondents reported that resellers had stopped their operations or were unable to procure more produce.
Most producers surveyed cited difficulty accessing agricultural inputs due to high prices, lack of workers, lack of fuel or electricity to power farm machinery, or even lack of access to electricity. In addition, there is a collapse of markets for agricultural resources (fertilizers and seeds), particularly in frontline areas.
According to the FAO, the greatest needs reported by respondents for continued production are provision of fertilizer, fuel and seeds, access to feed or forage, restocking of livestock and access to markets.
The FAO used an adapted methodology for assessing agricultural losses and damages. The survey was assisted by the Kyiv School of Economics, the All-Ukrainian Association of Rural, Village Councils and United Communities, the East Ukraine Agricultural Advisory Service for the survey in Donetsk Oblast, and the Office of Prospective Development for the survey in Zaporizhzhia Oblast.
