Socio-economic impact and needs assessment
Donbass - Ukraine
Ukraine agriculture has been evolving since the country achieved independence in 1991, following the breakup of the Soviet Union. The first round of farm reforms in 1992-93 initiated privatization of land through the distribution of paper shares to the rural population and mandated the transformation of former collective and state farms into corporate shareholder structures. The second round of reforms began in December 1999 when the corporate farms were obliged by presidential decree to convert the paper land shares into fully titled land plots for their shareholders. Most new shareholders leased their land back to newly-formed private agricultural associations. The sudden loss of state agricultural subsidies had a significant effect on every aspect of Ukrainian agriculture. Fertilizer use fell significantly over a ten-year period, and subsequently so did grain production. Farms were forced to cope with fleets of old machinery. However, at the same time, the emergence from the Soviet-style command economy enabled farmers to make increasingly market based decisions regarding crop selection and management, which contributed to increased efficiency in both the livestock and crop-production sectors. Though Donetsk and Luhansk regions are considered mainly industrial areas, a large number of people especially in the western part of Donetsk and northern part of Luhansk are dependent on agriculture. Agriculture (including livestock) is the second largest sector in Donetsk and Luhansk regions after industry.