According to the results of the poll that was conducted within the framework of the “Land Reform Barometer”, most of the agricultural producers require legal assistance.
According to the results of the poll that was conducted within the framework of the “Land Reform Barometer”, most of the agricultural producers require legal assistance.
The Law on Land Market is one of the prerequisites of introducing a full-fledged land market in Ukraine. The Draft Law (#9001-d, as of February 7, 2012) has been under consideration in the Parliament and has already gone through the first reading. This article focuses on the key elements of the revised Draft Law to the second reading.
The risk of massive buying-up of farmland from peasants at cheap price has been one of the concerns of introducing agricultural land market. However, the opinion poll in the framework of the “Land Reform Barometer” project demonstrated that the vast majority of rural residents would not sell their land. Moreover, only one-third of agricultural producers plan to buy the land they currently rent.
Before introducing the land market, there is a big interest in the real value of Ukrainian farmland. According to various sources, the average expected farmland value in Ukraine could range from USD 63 to 900 per hectare. The estimates are based on the actual performance of agricultural enterprises. The opinion poll, however, conducted in the framework of the “Land Reform Barometer” project showed that majority of landowners and agricultural manufacturers value their farmland for more than USD 5,000/ha, with landowners assessing land higher than agricultural producers.
A moratorium on sales of agricultural land has been in Ukraine since 2001 and is considered to be a significant barrier to the development of Ukrainian agriculture. Ukraine government has repeatedly announced its intention to lift the moratorium and implement a full-fledged market for agricultural land.