Experts say the price of agricultural land in Ukraine may range from $1,000 to $2,000 per hectare (ha) in the first year after the launch of the country’s farmland market, but more accurate figures can be announced after the formation of supply and demand in the market.
They made their comments during a press conference titled “Are Ukrainians ready to sell and buy land?”.
“Now there is no clear understanding among experts and businesses representatives of the price per hectare, which is expected to be set at $1,500-2,000. But even if a buyer is willing to pay $2,000, it doesn’t mean that a seller will receive such an amount, as there will be taxes that few people mention,” member of the Verkhovna Rada’s Committee on Agricultural and Land Policy Oleksiy Mushak said.
“Also, for example, there will be the issue of subsidies – an owner of a land share may lose it when he receives a large sum for his land. So, he may change his mind about selling it,” he added.
Analyst, editor-in-chief of the AgroPolit news outlet Natalia Bilousova stressed that from July 1 the land market would be open only to individuals, i. e. the circle of buyers would be limited.
“Land experts mention a different price range – from $1,000 to $2,000 per hectare. But the price will be determined by the market when supply and demand are formed. I estimate that only up to 10% of land, which is about 2 million hectares, will be sold in the first year or two,” she said.
At the same time, the cost of land lease will also increase. Belousova added that some farmers were going to raise lease payments to 18%.
CEO of the Ukrainian Institute of the Future Vadym Denysenko says most owners of land shares are unaware of how much their land may cost after the market opening.
“According to a study conducted by our institute, 78% of Ukrainians consider themselves incompetent in this matter and cannot name a fair price per hectare of land. The remaining 22% gave completely different answers: from UAH 1,000 to UAH 1,000,000 ($35.84 to $35,842) per hectare,” he said.
At the same time, 51% of Ukrainians believe that the rate of lease shares will rise sharply after the launch of the market, while 26% say it will grow, but slightly. (UNIAN/Business World Magazine)