Since the launch of the land market on July 1 and as of the morning of August 16 in Ukraine, a total of 7,100 transactions of agricultural land purchase for agricultural plots with a total area of 14,830 hectares were held, Poltava and Kharkiv regions are leaders in the number of concluded agreements, the Ministry of Agrarian Policy and Food reported on the website on Friday, August 13.
It is reported that Poltava region is in the lead in terms of the total area of sold land plots with an indicator of 1,740 hectares, followed by Kharkiv (1,710 hectares), Dnipropetrovsk (1,230 hectares), Kirovohrad (1,210 hectares) and Kherson (1,100 hectares) regions.
The Ministry of Agrarian Policy also said that during this period, 5,240 applications for access to the State Land Cadastre for the purpose of online verification of land plots purchase legality were received from notaries. Among them 4,590 applications were agreed, 49 applications are in the queue for consideration, 0,600 applications denied access. In total, there are more than 6,000 notaries in the country.
As reported, the agricultural land market launched in Ukraine as part of the government’s land reform began operating on July 1. At the first stage of the reform, only citizens of the country will be able to buy and sell land plots. One individual will be able to dispose of no more than 100 hectares.
The right to purchase agricultural land on January 1, 2024 will be given to legal entities established in accordance with the legislation of Ukraine, while the final beneficiary of one or more legal entities will be able to consolidate through them a total of not more than 10,000 hectares.
Land prices and the balance of its supply and demand will be established after 2024, when legal entities (including large agricultural holdings) will be able to buy land, then a full-fledged agricultural land market will appear in Ukraine.
This opinion was expressed to the Interfax-Ukraine agency by the co-founder of the Land Club association of land investors, Oleksandr Kolotilin.
He clarified that all large agricultural holdings with which his organization works intend to buy agricultural land leased by them.
“We work with large agricultural holdings. I can say that all the companies we talked to intend to buy agricultural land that they lease and cultivate. I cannot name them, since many of them are public companies, and they must declare themselves their position and intention to purchase land or plans in 2024. But all large agricultural holdings are making exactly such plans,” Kolotilin said.
According to the data on the Land Club website, the founder of the investment organization is the director general of IMC agricultural holding and the president of the Ukrainian Agribusiness Club, Alex Lissitsa. The project offers investors the purchase of land plots leased by agricultural holdings in order to receive guaranteed rent from them.
Earlier, MHP Financial Director Viktoria Kapeliushna announced that her company was not interested in buying land. She noted that the economic model of the agricultural holding includes work on the leased land, and in the event of a change in its owner, the group of companies will look for other land plots for lease.
A similar opinion was expressed by the owner of KSG Agro agricultural holding, Serhiy Kasyanov. The agricultural holding does not plan to buy land after the opening of the land market, since its activities involve working with leased plots.