{"id":1015,"date":"2024-02-16T17:58:34","date_gmt":"2024-02-16T14:58:34","guid":{"rendered":"https:\/\/zemi.com.ua\/?p=1015"},"modified":"2024-08-21T16:15:33","modified_gmt":"2024-08-21T13:15:33","slug":"czena-na-zemlyu-i-perspektivy-rynka-chto-menyaetsya-so-vtorym-etapom-zemelnoj-reformy","status":"publish","type":"post","link":"https:\/\/zemi.com.ua\/en\/czena-na-zemlyu-i-perspektivy-rynka-chto-menyaetsya-so-vtorym-etapom-zemelnoj-reformy\/","title":{"rendered":"Land Price and Market Prospects: What Changes with the Second Phase of Land Reform"},"content":{"rendered":"\n

What is new in the second stage of land reform and how will it affect Ukrainians and the agricultural sector?<\/p>\n\n\n\n

Expanding opportunities: Land reform in action<\/h2>\n\n\n\n

From January 1, 2024, the second stage of land reform in Ukraine has begun, changing the rules in the land market. Now not only individuals but also companies can acquire land, and the limit “in one hand” has increased from 100 ha to 10,000 ha.<\/p>\n\n\n\n

\"The<\/figure><\/div>\n\n\n\n

Considering the prohibitions, foreigners do not have access to the market without a decision from a nationwide referendum, and state land remains under a moratorium. All these changes have caused various opinions and controversial views among deputies and farmers.<\/p>\n\n\n\n

Market Dynamics: How the Market Operated Over the Past Two Years<\/h2>\n\n\n\n

From July 1, 2021, the moratorium on the sale of agricultural land was lifted, and during this time, more than 20 million hectares have come onto the market. According to the rules, individuals could only purchase up to 100 hectares “in one hand” until January 1, 2024. However, this did not prevent agribusiness holdings from concentrating land.<\/p>\n\n\n\n

Approximately 540 thousand hectares of land changed owners, and only a third of them were sold. The others were transferred through other forms, such as gifting or inheritance. After a temporary halt due to the Great War, market activity returned, but it took time to reach previous volumes.<\/p>\n\n\n\n

Currently, only 1% of agricultural land is in circulation on the market, according to the Ministry of Agrarian Policy<\/a>. This situation is a result of the unstable political and economic situation.<\/p>\n\n\n\n

Business and land: What can be purchased, but not by everyone<\/h2>\n\n\n\n

Regarding the land sold to businesses, approximately 70% of the plots may be in use by legal entities. The rest is owned and cultivated by the buyers themselves. With the increase of the limit to 10,000 hectares, it is not necessary that large companies will buy all the land. The process will be lengthy due to the size of the plots and risky due to the inclusion of individuals in the bidding.<\/p>\n\n\n\n

In November 2023, the price of 1 hectare of land<\/a> sold at auctions was 36 thousand UAH. Acquiring 10 thousand hectares will cost the agribusiness holding at least 360 million UAH. Not all companies can afford this, especially due to affiliated persons.<\/p>\n\n\n\n

Also, not all agribusiness holdings will have the opportunity to buy land, as the Land Code imposes a ban on companies with foreign investors.<\/p>\n\n\n\n

Price dynamics: How much does agricultural land cost<\/h2>\n\n\n\n

Land prices can vary depending on the region and even neighboring plots. The minimum price for 1 hectare of land in 2023 was determined by its normative monetary valuation (NMV).<\/p>\n\n\n\n

However, official statistics do not always reflect real prices, especially for small farmers who are trying to document a higher value.<\/p>\n\n\n\n

Data from the State Geocadastre may indicate price trends, but actual prices can be two to three times higher. For instance, the cost of a hectare of land in Dnipropetrovsk region<\/a> was over 33,200 UAH.<\/p>\n\n\n\n

Future of the Land Market: Growth Prospects and Challenges<\/h2>\n\n\n\n

With the increase in limits and the participation of legal entities in the market, price growth is expected. Currently, the market is not intensive, as landowners rarely sell it, but with new opportunities, this may change.<\/p>\n\n\n\n

The All-Ukrainian Agrarian Council expressed outrage over the increase in limits, while agricultural producers claim that over 70% of farmers are against it. They express outrage over the possible concentration of land in the hands of dishonest players.<\/p>\n\n\n\n

For small farms, there are government programs, but medium-sized farms that cannot take advantage of these programs will find themselves in the most difficult situation.<\/p>\n\n\n\n

The high price of land can be an advantage for farmers who work their own land, as it will allow them to obtain more funds in credit. It is important for the state to continue supporting small farms to ensure stability in the agricultural market.<\/p>\n","protected":false},"excerpt":{"rendered":"

What is new in the second stage of land reform and how will it affect Ukrainians and the agricultural sector? Expanding opportunities: Land reform in action From January 1, 2024, the second stage of land reform in Ukraine has begun, changing the rules in the land market. Now not only individuals but also companies can […]<\/p>\n","protected":false},"author":2,"featured_media":1016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-novosti-rynka-zemli"],"yoast_head":"\n\u0417\u0435\u043c\u0435\u043b\u044c\u043d\u0430 \u0440\u0435\u0444\u043e\u0440\u043c\u0430: \u0420\u0438\u043d\u043e\u043a \u0437\u0435\u043c\u043b\u0456 \u0432 \u0423\u043a\u0440\u0430\u0457\u043d\u0456 - \u0446\u0456\u043d\u0438, \u0437\u043c\u0456\u043d\u0438 \u0442\u0430 \u043f\u0440\u043e\u0433\u043d\u043e\u0437\u0438<\/title>\n<meta name=\"description\" content=\"Find out what changes the second phase of land reform in Ukraine has brought by looking at the land market, farmland prices and the impact on the agricultural sector.\" \/>\n<meta name=\"robots\" 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