Land reform: how much will a hectare cost and who will be able to buy it
On July 1, the land reform will come into force in Ukraine. However, so far only individuals can purchase land and no more than 100 hectares per person. At the same time, farmers are in no hurry to make plans to buy land.
As noted in the story of The Page's partner, the Persha Spalt program, a hectare of land is worth much more than the usual rent.
How much will the land cost
Until 2024, there will be restrictions on the sale and purchase of land. According to the State Geocadastre, the average standard price of a hectare of arable land in Ukraine will be from UAH 21 to 30 thousand. However, this forecast does not concern the actual cost, but is only used for taxation, said Anatoly Miroshnichenko, First Deputy Chairman of the State Geocadastre.
We expect the overall selling price to be higher. The parties will probably be guided by the normative monetary value. But solely on the grounds that the law prohibits the sale of agricultural land below the normative assessment, - explained Miroshnichenko.
Based on these estimates, the most expensive land was found in the Cherkasy region - for 1 hectare you can get $ 2500. And the cheapest one is in Zhytomyr - $ 1100.
Top 5 areas with the highest land value
- Cherkasy region - $ 2500 per hectare;
- Chernivtsi region - $ 2470 per hectare;
- Kharkiv region - $ 2460 per hectare;
- Kirovograd region - $ 2360 per hectare;
- Donetsk region - $ 2300 per hectare.
Top 5 areas with the lowest land value
- Chernihiv region - $ 1340 per hectare;
- Rivne region - $ 1220 per hectare;
- Volyn region - $ 1215 per hectare;
- Lviv region - $ 1200 per hectare;
- Zhytomyr region - $ 1100 per hectare.
Who will be able to purchase land in 2021
The land market opens up land for small farms, because the restriction on selling only to individuals and not more than 100 hectares in one person will not yet allow large enterprises to buy hectares.
Some small businesses began to consider purchasing hectares. However, limiting the amount of land that can be purchased prevents businesses from expanding significantly.
If we are talking about the berry business, then 100 hectares would be enough for us. However, we will develop the garlic business and animal husbandry - we have sheep. Therefore, 100 hectares will not be enough, ”said Alexey Tregubov, director of Agro Staritsa.
At the same time, he noted that rent for a share (about 2.5 hectares) in the region where the enterprise operates is 12 thousand hryvnyas. And it turns out that for a hectare per year you need to pay 5 thousand UAH. If you buy it, you will have to pay 50 thousand hryvnyas, and this is rent for 10 years, so it is cheaper for farmers to rent.
In addition, the price on the land market actually does not correspond to reality, because the market will still be limited due to the ban on the sale of more than 100 hectares and exclusively to individuals. This situation does not allow the development of demand and the formation of the market price.
If Ukraine carried out a reform on the European model, the price of land over the next five years would have reached $ 4-5 thousand, says Anatoly Amelin, co-founder of the Ukrainian Institute for the Future.