Photo from UNIAN
Maksym Martyniuk, Chief of Ukraine's State Service on Geodesy, Cartography and Cadaster (Derzhgeokadastr) says the value of the Ukrainian agricultural land after a possible lifting of a moratorium on farmland purchase/sale may be comparable with the price of farmland in Poland.
"All the countries that had not had markets and where such markets later appeared saw a significant decline in prices in the first couple of years. Prices began to rise and stabilize after the first wave of purchase and sale. I believe we should consider the value of farmland in Poland as a benchmark for evaluating [farm land in Ukraine]," Martyniuk said.
According to the Polish Agency for Restructuring and Modernization of Agriculture, the average price of farmland in Poland in the second quarter of 2015 was higher than $8,000 per ha.
Martyniuk said that, in accordance with the obligations stipulated in the law on extension of the moratorium on purchase/sale of farmland until 2017, the State Land Cadaster Agency has submitted for consideration of the government a draft law "On trading of land," envisaging a phased abolition of the moratorium. During the first stage, it is planned to sell state-owned lands only, estimated at about 10 million hectares. Major buyers of this land will be small farmers and agricultural holdings, officials say.
Read alsoPoroshenko signs law extending moratorium on farmland sale"There are two main categories of buyers. The first one includes small farmers, who typically farm 10-30 hectares, for example for vegetable growing. The second category includes agricultural holdings that lease land shares adjacent to state-owned land plots. So, logistically, it is convenient for them," Martyniuk said.
During the second phase, the land market can be opened to owners of land shares. Martyniuk assured Ukraine was ready to open its land market.
As UNIAN reported earlier, in November 2015 the Ukrainian parliament extended a moratorium on the purchase and sale of farmland for another 12 months, until January 1, 2017. The adopted document stated that the government should have developed a draft law on land trading by March 2016. Earlier, Ukraine's Cadaster Agency said that the country would be able to lift the moratorium on farmland sale not earlier than in 2018 due to shortcomings in the legislation.
Experts have different opinions as for the lifting of the moratorium. Some claim that it may stimulate the shadow land market, while others forecast that farmers may lose farmland, while foreign companies will buy land in bulk.