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Agricultural Devastation in Ukraine Will Require Decades Before Recovery

06/18/2023

According to studies conducted by the Kyiv School of Economics, the agricultural sector of the Ukraine economy could take twenty years to completely recover from the damage inflicted by the Russian Federation.  Due to mining of fields, deployment of farmers as soldiers, deliberate targeting of grain storage, handling and processing installations, production is down by at least one third. 

 

According to the Ministry of Agriculture, Ukraine harvested 106 million metric tons of grain and oilseeds in 2021 before the invasion.  Output will decline to approximately 65 million metric tons in 2023.  Modeling conducted by the Kyiv School of Economics suggests that sunflower and wheat production will recover by 2040 but corn and canola will only return to preinvasion levels by 2050.  The projections presumed cessation of hostilities by 2024 and presumably reoccupation of land in eastern provinces currently under the control of the Russian Federation.  The studies on which the conclusions were based were, in all probability, completed before the breaching of the Kakhovka Dam that inundated extensive areas of rich farmland, disrupting infrastructure and rendering villages uninhabitable for their rural residents.

 

Lowered production from Ukraine will indirectly increase the price of grains and oilseeds on world markets and inflate the cost of production of poultry and livestock in the U.S.