The opening of the land market will promote growth of cost of rent

2017-02-23 12:00:41
Machine translation
The opening of the land market will promote growth of cost of rent

According to the agriculture Ministry, the average rent of land shares in Ukraine in 2016 increased by 27% from 862 to 1093,4 UAH per hectare.

 

"Even despite the positive trend, rents in absolute terms remain too low, especially in comparison with value added, which allows to obtain agricultural land," - said the Deputy Minister of agrarian policy N. Martyniuk.

 

the Highest cost per hectare of leased land is recorded in the Poltava region (UAH 2243,2), Cherkasy (2215,5 UAH) and Kharkiv (UAH 1603). Cheapest rent fee in the Kyiv region (533,4 UAH/ha), Transcarpathia (596 UAH/ha) and Ternopil (672,3 UAH/ha). The total area given to the use of agricultural land is 16.5 million hectares.

 

the Average rate of lease of state land increased significantly after the introduction of mechanism for transferring sections through auctions and built in 2016 2249,80 UAH per hectare, which is almost twice the cost of private rental units. This difference is due to the practice of transferring public lands for use exclusively through public land sales.

 

For comparison, the rent of land, which was passed in use at unbeatable basis in the previous periods, amounted to 940 UAH/ha Derzeitiger initiates the revision of agreements to bring contractual terms to the average values.

 

the opening of the land market will provide alternative opportunities to owners of private plots will increase competition and will allow you to increase the rent of land.

 

Recall that as 01.01.17 in the enclosed 4.8 million of leases of land, of which 2.2 million have an expiration period of 8-10 years.