Planting costs in Ukraine are rising due to higher energy and fertilizer prices

Due to rising prices for energy and fertilizers, Ukrainian farmers’ additional costs during the planting season could reach up to 1,000 hryvnias per ton of produce. 

This was announced during the Agro Team Expo by Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

According to Taras Vysotsky, if energy prices continue to rise, the cumulative impact on certain crops could approach 1,000 hryvnias per ton, which is already a significant factor for the production economy.

He clarified that the average grain yield in Ukraine is 3–5 tons per hectare, so the additional costs could amount to 3,000–5,000 hryvnias per hectare.

Vysotsky noted that Ukraine is approximately 60% dependent on fertilizer imports, so global disruptions—particularly the war in Iran, which has affected energy and fertilizer supplies—are increasing pressure on production costs.

At the same time, the official noted that a significant portion of the fertilizers was purchased in advance and used in the fall, so the main jump in costs is expected not this year, but next. Diesel fuel prices remain a more significant factor.

According to Vysotsky, rising fuel prices affect not only fieldwork but also the entire logistics chain—from resource delivery to export.

“If we look only at field work, the effect of rising fuel prices is noticeable but not critical: for corn, it could be around 100–300 hryvnias per ton, depending on whether we’re counting just the spring campaign or the entire annual work cycle. But fuel doesn’t just affect the field. It’s factored into the delivery of resources, crop transportation, drying, logistics, and export costs,” notes Vysotsky.

Alexander Kholod, director of the agrochemical company Vitagro Partner, reported that the cost of the 2026 planting season has already risen by at least $70 per hectare (over 3,000 hryvnias).

“Diesel fuel is up 67%, and urea is up nearly 70%. We expect this planting season to be at least $70 more expensive per hectare. And that is, most likely, a conservative estimate. Grain sales from farmers are slow due to price uncertainty, logistics, and geopolitical risks. And this creates financial pressure on both the producers themselves and us, the suppliers,” Kholod said.

The main reasons cited for the rise in costs in the agricultural sector are:

• rising energy costs (particularly diesel fuel)
• rising fertilizer prices (urea and others)
• dependence on fertilizer imports (~60%)
• logistical and geopolitical risks
• slow grain sales and financial pressure on producers

As a reminder, Ukrainian oilseed processing plants are reducing or completely halting sunflower processing due to a shortage of raw materials and high prices, which currently stand at 33–34 thousand UAH per ton. Some companies are switching to processing rapeseed and soybeans, as sunflower processing has become unprofitable—losses can reach up to $25 per ton.

Ukrainian gas station chains have once again updated fuel prices, reflecting an increase in gasoline costs. Over the past 24 hours, the price of gasoline at some stations has risen by 50 kopecks to 1 hryvnia per liter. Prices for diesel fuel and autogas have also changed at a number of chains.