News
04.12.2013
How to revive rural areas in Ukraine
According to the study of the AgriSurvey agency, state support of the development of social infrastructure and attraction of young people to rural areas shall be considered as the main instruments of rural development in Ukraine today.
In farmers’ opinion, state financing of social infrastructure (59%), attraction of youth to rural areas (53%) and subsidies for small-scale farmers (50%) are indispensable measures for the revival of rural sector in Ukraine. Respondents also claimed a need for accessible loans for agricultural producers. Lifting of the moratorium on land sale was the least supported measure (13%).
Interestingly, significant differences were observed between the farmers who consider agricultural sector as rather a business-oriented activity and the farmers who think of agriculture as a social-oriented activity. The former group considers government as the main responsible entity, claiming "public funding of social infrastructure" and "state support for individual farmers” to be the primary measures. The latter group underscores the importance of the agribusiness friendly environment. Reduction of regulations and attraction of young people to rural areas shall create favorable conditions for the private sector development and, eventually, enable agricultural producers to invest into rural areas.
‘The survey results demonstrate that agrarians expect the government to give first impetus for the rural sector revival. The development of social infrastructure and creation of favorable conditions for agricultural entrepreneurship (i.e. subsidies for small-scale farmers, reduction of regulatory procedures, facilitation of land registration procedures, VAT refunding for grain exporters, etc.) will foster investments into the rural areas, create new working places and thereby contribute to the revival of the rural sector in Ukraine’ said Anna Kvit, the research coordinator of AgriSurvey.