Continental Farmers Group has launched an investment project to develop an irrigation system in the southern part of Ukraine’s Ternopil region. Under the first phase, 202 hectares will be brought under irrigation in 2026. In 2027, the company plans to more than double the irrigated area to 420 hectares, according to the agricultural holding’s press service.
Capital expenditure on the irrigation infrastructure amounts to approximately $2,500 per hectare. Based on the announced scale, investment in the first phase is estimated at around $505,000, while total investment following completion of the second phase may exceed $1.05 million.
The project is aimed at developing high-margin seed production. During the first stage, the irrigation system is being used to cultivate seed corn under a contract with a seed originator company. The agricultural holding is also considering using the irrigation infrastructure to grow other crops in the future.
The project location was selected based on the availability of water resources for abstraction and the increasing instability of natural soil moisture levels in the Dniester area of the Ternopil region. The company noted that climate change has significantly increased drought risks even in western Ukraine, which has traditionally been regarded as a region with sufficient rainfall.
According to Kostiantyn Shytiuk, Chief Operating Officer of Continental Farmers Group, natural and climatic zones have been shifting in recent years, increasing the risk of crop losses during critical stages of plant development.
“Our region has always been considered an area with sufficient moisture and an even distribution of rainfall. However, the situation has changed, and the risk of crop losses caused by drought has now become excessively high,” he said.
Shytiuk also emphasised that hybrid corn originator companies require seed crops to be grown exclusively under irrigation and in accordance with strict production protocols, making investment in irrigation an important element in the development of this business segment.
The agricultural holding will use US-manufactured centre-pivot irrigation systems equipped with remote-control technology. The equipment has already been purchased for both phases of the project.
The company said the irrigation investment is expected to deliver a dual economic effect. In addition to improving the stability and profitability of seed production, the project will allow the agricultural holding to participate in a buyback programme offering additional discounts on seed purchases as part of its cooperation with the seed originator company.
