Changes in Taxation Could Encourage Expansion of Organic Crop Areas

by Roman Cheplyk
Monday, December 16, 2024
1 MIN
Changes in Taxation Could Encourage Expansion of Organic Crop Areas

By 2030, Ukraine aims to have up to 3% of all its arable land dedicated to organic agriculture, as outlined in the National Economic Strategy

This goal requires a fivefold increase in the current area under organic production.

According to industry stakeholders, one effective approach to boosting organic acreage would be to allocate more state-owned land to organic producers. A key instrument for achieving this is to reform the taxation system for organic businesses, from the taxation of land rent to adjustments throughout the entire value chain.

These views were shared by Hlib Lukyanenko, Director of PE Agroekologiya, during the international conference "Organic Grain and Oilseed Crops: Production, Processing, and Export."

“Optimizing tax policies would serve as a powerful incentive for landowners to lease their plots to organic enterprises, as they could receive higher rents in a more competitive taxation environment. At the same time, this would stimulate growth in the organic processing market,” Lukyanenko noted.

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