40% compensation for agricultural machinery in 2026 | Agro Kar
In 2026, some agricultural producers are eligible for an increased state compensation of 40% of the cost of Ukrainian-made agricultural machinery and equipment excluding VAT.
The program was launched in April 2026 and is primarily intended for farmers operating in territories where hostilities are ongoing or have taken place. For other agricultural producers, the standard 25% compensation program remains available.
Who Can Receive the 40% Compensation
Agricultural producers may qualify for the increased compensation if they meet all of the following conditions:
- they are registered in the State Agrarian Register;
- they own or legally use agricultural land;
- 80% or more of their land is located in territories where hostilities are ongoing or have taken place;
- the agricultural enterprise is registered in the relevant territory;
- the purchased machinery is included in the official list of Ukrainian-made equipment eligible for the program.
These territories include areas of possible and active hostilities listed in the official register approved by the Ministry for Communities and Territories Development of Ukraine.
What Amount Is the 40% Compensation Calculated From?
The compensation is calculated based on the price of the machinery excluding VAT.
For example:
| Indicator | Amount |
|---|---|
| Machinery price including VAT | UAH 1,200,000 |
| Price excluding VAT | UAH 1,000,000 |
| 40% compensation | UAH 400,000 |
| Actual cost after compensation | UAH 800,000 |
In this example, the agricultural producer receives UAH 400,000 in state compensation.
How to Receive the 40% Compensation
The procedure is similar to the standard 25% compensation program.
1. Check Eligibility
Make sure that at least 80% of the farm’s land is located in territories that meet the program requirements.
2. Register in the State Agrarian Register
Information about the agricultural producer and its land bank is verified through the State Agrarian Register.
3. Choose Machinery from the Official List
Compensation is available only for Ukrainian-made machinery and equipment included in the current official list approved by the Ministry of Economy.
4. Purchase and Fully Pay for the Machinery
Payment must be made through an authorized bank.
5. Submit an Application Through the Bank
After purchasing the machinery, the agricultural producer submits the required documents for compensation through the authorized bank.
Once the application is verified and approved, the compensation is transferred to the buyer’s account.
Does the Program Actually Work?
Yes.
In June 2026, the Ministry of Economy reported the first payments of 40% compensation to agricultural producers from Donetsk, Sumy, Mykolaiv and Kherson regions.
In July, based on applications submitted in May, the government paid another UAH 19.7 million in increased compensation to 28 agricultural enterprises. Applications were submitted, among others, by businesses from Donetsk, Kharkiv, Zaporizhzhia, Sumy, Chernihiv, Kherson, Mykolaiv and Odesa regions.
Can SPIKE Tractors Be Purchased with 40% Compensation?
If a specific SPIKE model is included in the current official list of eligible machinery and the buyer meets the requirements of the increased compensation program, it may qualify for the 40% reimbursement.
The Agro Kar range includes:
SPIKE TK604 — 60 hp
SPIKE TK904 — 90 hp
SPIKE TK1054 — 105 hp
Before purchasing, it is important to verify that the specific model is included in the current government list on the date of payment.
25% or 40% — What Is the Difference?
The main difference depends on the location of the farm’s agricultural land.
| Conditions | Compensation |
|---|---|
| Standard agricultural producer | 25% |
| 80% or more of the land located in eligible hostilities-affected territories | 40% |
If a farm does not meet the criteria for the 40% compensation, it may still qualify for the standard 25% program.
How to Find Out Whether Your Farm Is Eligible
Agro Kar specialists can help you:
- check whether your business is eligible for the program;
- select the appropriate SPIKE tractor;
- calculate the estimated compensation amount;
- explain the application procedure through an authorized bank.
For a preliminary calculation, it is enough to know the place of registration of the agricultural enterprise, the location of its land bank and the machinery model you are planning to purchase.