Government predicts price of farmland to double in Ukraine in next two to three years

The Ukrainian government predicts the price of agricultural land in Ukraine will double in the next two to three years after the launch of the farmland market, which is scheduled for July 2021.

Prime Minister Denys Shmyhal announced this at the Ukraine 30. Land Forum.

"The launch of the farmland market will entail a twofold increase in the price of a hectare of land during the first two to three years. These are our estimates," he said.

Read alsoZelensky enacts law to launch farmland market in Ukraine

Launch of farmland market in Ukraine

• On November 14, 2019, a bill on the lease and sale of state-owned and municipal land via e-auctions (No. 2195) passed its first reading in parliament.
• Ukrainian agribusinesses urged lawmakers to back that bill.
• On April 28, 2021, the Verkhovna Rada adopted a comprehensive bill on deregulation in the field of land relations.
• Bill No. 2194 provides for the transfer of state-owned land outside villages and towns (except for land that the state needs to perform its functions) into municipal ownership of village and town councils or territorial communities. The latter are also empowered to change the designated purpose of privately owned plots of land.
• In addition, it is proposed that the powers of the State Service for Geodesy, Cartography, and Cadastre were revised.
• On April 28, 2020, President Volodymyr Zelensky signed a bill on amendments into law to launch the farmland market in Ukraine from July 1, 2021.
• The law foresees gradual land reform: from July 1, 2021, citizens of Ukraine will be able to buy farmland plots capped at 100 hectares. At the second stage, i.e. from January 1, 2024, the cap will be raised to 10,000 hectares, while legal entities will also be allowed to acquire land plots.
• On May 13, 2021, it was reported the Constitutional Court of Ukraine on June 3, 2021, would start considering a motion filed by a number of lawmakers challenging the law on farmland turnover.
• On May 18, 2021, the Verkhovna Rada adopted a draft law on the sale of land under new rules.
• On May 19, 2021, lawmakers managed to unblock the signing of the law on deregulation of land relations.
• On May 24, 2021, Ukrainian President Volodymyr Zelensky enacted law No. 2194 on deregulation of land relations.