The International Fund for Agricultural Development (IFAD) has approved its first full-scale project in Ukraine – DOBRO, short for Developing Business and Opportunities for Rural Territories. The initiative is designed to help small farmers rebuild and grow their businesses after years of war-related disruption, while making production more resilient to climate shocks.
Under the DOBRO project, an initial 15 million in financing will be directed to small agricultural producers, with a special focus on young farmers, women and veterans. Support will be channelled through grants, advisory services and investments in local infrastructure that help farms stabilise output, move up the value chain and access better markets.
### Strategic partnership and policy context
The project is being developed in partnership with the Government of Ukraine and IFAD following Ukraine’s recent accession to the Fund. For Kyiv, DOBRO is part of a broader shift from emergency aid towards long-term development finance for rural areas. For IFAD, Ukraine becomes a priority case of rebuilding agriculture in a war-affected upper-middle-income country.
Officials stress that the programme will complement existing state grant schemes rather than duplicate them. National support tools have already helped thousands of farmers expand production, while IFAD funding is expected to add patient capital and international expertise in building inclusive, climate-smart value chains.
### Focus on women, youth and veterans
DOBRO explicitly targets groups that have historically had limited access to finance and land – rural women, young people and veterans returning from the front. Many of them operate small family farms or micro-enterprises in livestock, grains, horticulture and processing, often with weak collateral and fragmented market access.
Dedicated windows within the project are expected to back business plans from these groups, combining investment in machinery and equipment with training in financial management, marketing and sustainable production practices. For veterans in particular, successful farm projects can become both a source of income and a path to social reintegration.
### Climate resilience and sustainable production
A key component of DOBRO is climate resilience. Russian attacks, damaged infrastructure and changing weather patterns have increased production risks across Ukraine’s rural regions. The project will therefore prioritise investments in sustainable land management, improved seeds and breeds, water-saving technologies and basic on-farm infrastructure.
By tying financial support to climate-smart practices, IFAD and the government aim to lower volatility in yields and incomes, making small farms more bankable for future commercial lending. Over time, this should reduce dependence on pure grant support and unlock a broader mix of public and private finance.
### What the project means for investors and rural businesses
For agribusiness investors, DOBRO is a signal that Ukraine’s small-farm segment is moving from survival mode towards structured development. The programme can create pipelines of better-prepared farmers and cooperatives that are ready to work with processors, input suppliers, logistics providers and financial institutions.
In practical terms, investors should monitor how the project selects beneficiaries, which regions and value chains are prioritised, and how co-financing with local partners is organised. Those who can offer technology, climate-smart inputs, storage, processing or rural financial services may find new opportunities to partner with IFAD-backed initiatives and scale successful models across Ukraine’s rural economy.
