When Russia invaded Ukraine in February 2022, Titan Machinery’s Bo Larsen says the impact on ag equipment sales was felt almost immediately. For the first 2 years of the war, many farmers put off buying new equipment — sometimes due to a lack of income, and other times due to a lack of equipment availability. Regardless, those deferred purchases created some considerable pent-up demand among Ukrainian farmers, particularly large enterprises that tend to replace equipment every year or two.
“Our business was sliced in half that first year of the war,” Larsen relates. “Now, over the past couple of years, we’ve seen things continue to climb back to where we were before the war.”
A new report from Ag Equipment Intelligence examines the equipment needs the country will have post-war.
Purchase the Ukrainian Ag Equipment Outlook Special Report
Ukraine is known as the breadbasket of Europe for its climate and highly fertile ground, which according to the USDA is more than 55% arable.
The years-long uncertainty with its war with Russia has continued to complicate the geopolitical, economic and agricultural situations. The editors of Ag Equipment Intelligence have embarked on a truly aggressive custom research project that anticipates the opportunities and challenges ahead for the agricultural equipment market following the eventual resolution to the conflict’s end.
Ukraine Ag Sector Recovery & Reconstruction Needs
Agriculture has been a key sector in the overall Ukrainian economy, ranking third behind services and industry. In 2021, prior to the Russian invasion, agriculture accounted for more than 10% of GDP and 14% of total employment. Agriculture has also been responsible for more than 40% of Ukrainian exports.
A damage assessment report published in February 2025 estimates that total damages in Ukraine’s agriculture sector have climbed to roughly $11.2 billion. Farm machinery represents the largest share of total damages at 58%, which equates to nearly $6.5 billion. Damage to storage facilities amounts to another $1.9 billion. The damage assessment report, known as the RDNA4, is a collaboration between the World Bank, the Government of Ukraine, the European Union and the United Nations.
Total ag sector recovery and reconstruction needs are now estimated at $55.5 billion over a 10-year period (2025-2035), according to the RDNA4. Total irrigation sector needs are estimated at $10.9 billion.
Those overall assessments include the following:
- Farm equipment and machinery – $7.2 billion
- Storage facilities – $2.26 billion
- Advancement of climate-smart technologies adoption – $15 billion
- On-farm irrigation equipment and technology – $327 million
While there are many Ukrainian farm equipment manufacturers, the Ukrainian ag economy has relied heavily on imported equipment. According to the Turkish Association of Agricultural Machinery & Equipment Manufacturers, the 10-year import average prior to the Russian invasion was roughly $1.1 billion per year.
In the first 2 years of the war, that volume dropped nearly 20%. Nearly half of that contraction was recovered in 2024, and has continued inching upward this year. In the event of a peace settlement, the association anticipates a doubling of imports in the first stage of Ukraine’s recovery, with additional increases thereafter.
