Automation of Agrarian Registers: A New Mechanism to Support Agriculture

The Government of Ukraine has introduced automated information exchange between the State Agrarian Register (DAR) and the Register of Agrarian Notes. This became possible thanks to the adoption of a relevant resolution at the Cabinet of Ministers meeting on December 27, 2024, the press service of the Ministry of Agrarian Policy of Ukraine reports.

From now on, DAR administrators will be able to carry out electronic interaction not only with state registers, but also with the Register of Agrarian Notes. This will allow automatically entering into the DAR information about the issuance, content, change of details, termination and encumbrance of agrarian notes, as well as the beginning of forced fulfillment of obligations under them.

This step is aimed at supporting a new settlement mechanism in agriculture - agrarian notes, which will come into effect from January 1, 2025. The legislative basis for this initiative was created in early 2024.

An agricultural note is a non-issueable security that confirms the unconditional obligation of the debtor. It can ensure the supply of agricultural products or the payment of funds to the creditor in accordance with the terms specified in the note. This financial instrument is an innovative way to attract funds to the agricultural sector or settle contracts.

At the same time, agricultural notes do not replace traditional agricultural receipts regulated by the Law “On Agricultural Receipts” of 2012. Both instruments will operate in parallel, providing agricultural producers with a greater choice of financial solutions.

Information on agricultural notes will be available in a special register, which will include data on all stages of the circulation of notes - from issuance to forced fulfillment of obligations. Automation of these processes will reduce the bureaucratic burden and contribute to increasing transparency in the agricultural sector.

The new mechanism is an important step towards modernizing financial instruments for Ukrainian agriculture, which should strengthen its positions in domestic and foreign markets.