Does Ukraine need land reform?
Obviously yes. From July 1, 2021, a market for the purchase and sale of agricultural land has been opened in Ukraine. Previously, this was not possible due to the sales moratorium, which has been in place in Ukraine since 1992. The law said that the landowners couldn't sell their land but only process it themselves, exchange it, or lease it.
Despite the fertility of black soil, the cost of land lease in Ukraine is one of the lowest in Europe. Therefore, leasing land was not always a profitable deal.
Experts believe that prices for agricultural land in Ukraine will triple after the moratorium cancellation. The rental rate will also rise. It will also attract investment to Ukraine and increase revenues to state and local budgets.
Main about land market reform
A citizen of Ukraine will be able to buy agricultural land plots with a total area of up to 100 hectares. From 01.01.2024, the limitation of the maximum area of acquired agricultural land plots will increase and will amount to 10.000 hectares;
• A legal entity will be able to acquire ownership of no more than 10,000 hectares;
• It is prohibited to sell state and municipal agricultural land plots.
The current situation with the land purchase in Ukraine
According to the Ministry of agricultural policy, 40.510 transactions were concluded in Ukraine as part of the land market opening, for a total area of 100.390 hectares and an amount of $453 million.
Already 5252 notaries have applied for access to the State Land Register. There were 5894 applications in total, of which 5215 were approved. From July 1 to November 5 this year, agreements for 100 390 hectares of land have been registered in Ukraine.
In terms of the number of transactions, the leaders are Kharkiv (3523), Kyiv (3178) and Poltava (3115) regions.