Despite the difficult political, social, and economic situation in Ukraine, the agriculture sector has grown in the last years; the only large sector of the national economy to do so. Nonetheless, the 4 million households in Ukraine, producing nearly 45 percent of the country’s gross agricultural output, continue to need support, especially in these trying times. Small- and medium-sized farms dominate agricultural business in the United States, the European Union and Canada and have helped these countries become leading agricultural producers.
In the U.S. approximately 91 percent of farms are classified as small. Ukraine can join these countries if it properly nurtures the small and medium-sized farm.The strategy calls for developing legislation to provide small farming households with the status of agricultural producers, which will allow them to qualify for tax breaks and subsidies.
It takes into account local needs and encourages local initiatives to create employment opportunities in rural areas by diversifying farm production and developing more high value-added products.The strategy is the latest piece in the effort to grow Ukraine’s small- and medium-sized farming sector. Efforts are also underway to provide affordable loans to farmers and improve agricultural quality and productivity in line with EU standards.
The United States Agency for International Development worked in partnership with the Ministry of Agrarian Policy and Food of Ukraine to prepare the strategy’s initial vision on agricultural land reform, rural development, agricultural finance, support to small farms and service cooperatives, and market infrastructure development for small- and medium-sized agricultural producers. Representatives from the government of Ukraine, civil society, academia, and international donors developed the specific priority areas defined in the Strategy.
After an extensive consultation process, which included a call for public input and feedback, the Strategy and a detailed Action Plan were finalized this fall.Support for the strategy is one example of the development assistance USAID has provided to the Ukrainian people over the past 23 years. At the core of USAID’s mission and programs is a commitment to work in partnership to foster sustainable development. USAID’s programs in Ukraine are demand driven by the needs of the country and the communities in which our local partners and beneficiaries live and work. Rather than impose, we seek to empower and support local counterparts through collaboration.
The extensive reform agenda that the government of Ukraine continues to execute provides an opportunity for many diverse stakeholders to collaborate and drive the programs needed to achieve the growth and progress of which Ukraine is capable.
As they do elsewhere, vested interests will try to keep the rules of the game in their favor. Ukraine’s policy must be to exclusively support the general interests of a broader, more inclusive population. Consensus among all stakeholders on all issues is not always feasible, but long lasting beneficial outcomes for all of Ukraine and its citizens are achievable through open, transparent, and honest participatory dialogue and collaborative approaches.
E. Jed Barton is the regional mission director for the U.S. Agency for International Development.
