Yuliia Zolotnytska, PhD, Food Safety Market Unit, Institute of Markets and Competition, SGH Warsaw School of Economics, Poland

ORCID ID: 0000-0002-9278-0707
e-mail: yzolot@sgh.waw.pl

Regulatory and Legal Framework for State Support for Family Farming in Ukraine

Abstract. Introduction. The article reveals key aspects of Ukraine’s current regulatory and legal framework for state support of family farming. The regulatory and legal framework for family farming in Ukraine has been evaluated and found to be characterized by significant changes aimed at improving farming conditions. Despite the positive changes, it has been established that the regulatory and legal environment in Ukraine continues to have serious issues hindering the effective development of family farming. These issues include unclear legal norms, limited access to financing, a high tax burden, and a lack of a comprehensive strategy.

Purpose. A comparative analysis of state support for family farming in Ukraine and EU countries revealed different approaches to financing and stimulating farms, determining their level of competitiveness and efficiency. We found that the problems of family farming in Ukraine partially coincide with the challenges in other countries, such as bureaucracy, tax burdens, and lack of financial support.

Results. A model is proposed to improve the regulatory framework for family farming in Ukraine, based on a comprehensive approach to legislative and financial reform. The model encompasses four essential components: streamlining bureaucratic processes, enhancing financial resource accessibility, aligning legislation with the practical needs of farmers, and fostering collaboration.

Conclusions. Implementing a model to improve regulatory and legal support for family farming in Ukraine will reduce the bureaucratic burden, improve access to financing, create a favorable legislative environment, and develop farmer associations. This will significantly strengthen the role of family farming in the Ukrainian economy.

Keywords: state support; family farming; regulatory and legal framework model; development.

References:

1. Government of Canada (2025). Agriculture and Agri-Food Canada. Financial Programs. https://publications.gc.ca/site/archivee-archived.html?url=https://publications.gc.ca/collections/collection_2025/aac-aafc/A1-30-2024-eng.pdf.   
2. European Commission. (2017). Communication from the Commission 1 to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Common Agricultural Policy after 2020. https://ec.europa.eu/agriculture/sites/agriculture/files/future-cap/cap-post-2020-communication_en.pdf.   
3. FCC (2025). Farm Credit Canada. Young and new farmers. https://www.fcc-fac.ca/en/resources/next-generation#X6cjuHP=0.  
4. Fecke, W., Feil, J., & Musshoff, O. (2016). Determinants of loan demand in agriculture: empirical evidence from Germany. Agricultural Finance Review, 76(4), 462–476. DOI: https://doi.org/10.1108/afr-05-2016-0042.
5. Filippi, M. (2011). The French agricultural cooperative system: An explanatory spatial data analysis. https://www.researchgate.net/publication/254457423_The_French_agricultural_cooperative_system_An_explanatory_spatial_data_analysis. 
6. Sejm Rzeczypospolitej Polskiej (2006). Ustawa z dnia 24 sierpnia 2006 r. O Agencji Rynku Rolnego i zmianie niektórych ustaw. https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20061781307.
7. Pawlewicz, A., Brodzinska, K., Zvirbule, A., & Popluga, D. (2020). Trends in the development of organic farming in Poland and Latvia compared to the EU. Rural Sustainability Research, 43(338), 1–8. DOI: https://doi.org/10.2478/plua-2020-0001. 
8. Pe’er, G., & Lakner, S. (2020). The EU’s common agricultural policy could be spent much more efficiently to address challenges for farmers, climate, and biodiversity. One Earth, 3(2), 173–175. DOI: https://doi.org/10.1016/j.oneear.2020.08.004. 
9. Pe’er, G., Dicks, L. V., Visconti, P., Arlettaz, R., Báldi, A., Benton, T. G., Collins, S., Dieterich, M., Gregory, R. D., Hartig, F., Henle, K., Hobson, P. R., Kleijn, D., Neumann, R. K., Robijns, T., Schmidt, J., Shwartz, A., Sutherland, W. J., Turbé, A., & Scott, A. V. (2014). EU agricultural reform fails on biodiversity. Science, 344(6188), 1090–1092. DOI: https://doi.org/10.1126/science.1253425. 
10. Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the Common Agricultural Policy. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1307.   
11. U.S. (2025). Small Business Administration. Loan Program. SBA. https://www.sba.gov/.  
12. Parliament of Ukraine. (2001). Land Code of Ukraine dated 25.10.2001 No. 2768-III. https://zakon.rada.gov.ua/laws/show/2768-15.
13. Lupenko, Y.O., Malik M.Y., Shpykulyak O.G. et al. (2019). Organizational and economic support for the development of family farms: monograph. Kyiv: NNC “IAE”, 212 p. http://repository.vsau.org/getfile.php/20329.pdf.
14. Malik, M., Shpykulyak, O., & Mamchur, V. (2020). Implementation of the Sustainable Development Goals of Ukraine in the Context of the Transformation of Individual Peasant Farms into Family Farms. Challenges of Time, pp. 21-31. DOI: https://doi.org/10.37100/2616-7689/2020/7(26)/3.
15. Lupenko, Y.O., Shpykulyak, O.G., Mesel-Veselyak, V.Y. and others (2019). Promising forms of organizing economic activity in the countryside: scientific report / National Scientific Center “Institute of Agrarian Economics”. Kyiv: NSC “IAE”.  114 p.  http://repository.vsau.org/getfile.php/20719.pdf
16. Parliament of Ukraine. (2010). Tax Code of Ukraine dated 02.12.2010 No. 2755-VI.  https://zakon.rada.gov.ua/laws/show/2755-17 
17. Parliament of Ukraine. (2016). On Amendments to the Law of Ukraine “On Farming” to Encourage the Creation and Operation of Family Farms: Law of Ukraine No. 1067-VIII of March 31, 2016. http://zakon5.rada.gov.ua/laws/show/1067-19. 
18. Parliament of Ukraine. (2018). On Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine on Stimulating the Establishment and Activity of Family Farms: Law of Ukraine No. 2497-VIII of July 10, 2018. https://zakon.rada.gov.ua/laws/show/2497-19#Text.
19. Parliament of Ukraine. (2004). On State Support for Agriculture in Ukraine: Law of Ukraine No. 1877-IV of June 24, 2004. https://zakon.rada.gov.ua/laws/show/1877-15#Text.
20. Parliament of Ukraine. (2003). On Cooperation. Law of Ukraine No. 1087-IV of 10.07.2003. https://zakon.rada.gov.ua/laws/show/1087-15.
21. Parliament of Ukraine. (2003). On personal peasant farming. Law of Ukraine No. 742-IV of 15.05.2003.  https://zakon.rada.gov.ua/laws/show/742-15.
22. Cabinet of Ministers of Ukraine. (2017). On approval of the Concept of Development of Farms and Agricultural Cooperation for 2018–2020. Parliament of Ukraine. Order of the Cabinet of Ministers of Ukraine No. 664-р. https://zakon.rada.gov.ua/laws/main/664-2017-%D1%80?utm_source=chatgpt.com#Text.
23. Parliament of Ukraine. (2003). On Farming. Law of Ukraine No. 973-IV of June 19, 2003.  https://zakon.rada.gov.ua/laws/show/973-15#n54.