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Agricultural land use in Ukraine may get more expensive


MyLand - 12/02/2013:


Recent weeks witnessed a new development of the market of agricultural land use in Ukraine. Two Members of Parliament of Ukraine (both belonging to ruling Party of Regions) registered draftlaws aiming at establishing higher minimum rates of ground rent for public and private farmland. So, draftlaw # 2254 (submitted by MP Bobov) provides for 4.5% minimum rate of rent paid for private land (currently - 3% of normative monetary value of land) and draftlaw # 2253 (also submitted by MP Bobov) - for the same minimum rate in case of lease of public farmland (currently - 0.1%).

A collegue of MP Bobov, MP Sigal also submitted two draftlaws providing, first of all, for new lower and upper ceilings of ground rent for private farmland (4-10%) and for payment of rent only in cash, without possibility to pay in kind (draft # 2098). Other draftlaw submitted by MP Sigal (draft # 2097) provides for an additional contribution (1% of normative monetary value of farmland, paid annualy) to be paid to local budgets by tenants of farmland and by owners of farmland which is not leased out.

It looks like all these draftlaws, despite immediate result being somewhat improved income of rural population and local budget situation, in the longer run may constitute an additional burden on farmers inconsistent with ideas of modernization and technical re-equipment of Ukrainian agriculture.



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