Ukraine is among the leaders in terms of land resources in Europe and is one of the largest countries rich in black soil. There are 28 million hectares of black soil with a total agricultural land of 42 million hectares in the country of which 32 million hectares are arable land. Today, a little more than 3 million hectares of land is cultivated by 14 largest agricultural holdings.
The question of land remains open and concerns operators of the market. Renting land becomes more expensive every year, but the lease has also increased from 3 to 7 years minimum.
It is clear that some market participants benefit from the current state of affairs. They mainly talk about the threat of use of agricultural land for other purposes. The other argument is the prospect to see all the lands passing into the hands of foreigners.
Nevertheless, the lifting of the moratorium has more positive aspects. Free selling will contribute to more efficient land management due to market competition. Landowners will be able to get the bank loans. The specialized banks, insurance companies, cadastral offices, educational institutions, and research centers will also appear. Investments in the land sector (including foreign ones) will help to improve the investment climate in the country. So, now it’s “only” necessary to decide who and how can own the land…