The Agrarian Investment Fund expects a significant increase in agricultural land lease rates. The rate is planned to be adjusted to the risks and peculiarities of each region.
How will the rental rate increase
Yaroslav Yaroslavskyi, head of the Agrarian Investment Fund, expects that due to the online auctions for the lease of state agricultural land, which are planned to be launched in the near future, rates will increase approximately threefold.
The starting rate was determined at the level of 12% per annum of the normative monetary valuation of the plot. On average, it is from UAH 3,500 to UAH 4,000 per hectare per year. The winner will be the one who offers the highest bid.
We analyzed Prozorro statistics by communal lands. The average rate at competitions there increases to UAH 10,000 – this is our guideline. But we have different regions, different risks – there are western regions, and there are Kharkiv Oblast and Sumy Oblast. Therefore, the market will show the difference in the demand for land, – says Yaroslavskyi.
Bidding will be the same as for communal land, which is already on Prozorro – in three rounds. The terms of the sublease are 14 years for fields under annual crops and 25 years for perennial plants.
Important 2,052 plots in 20 regions are planned to be put up for online land lease auctions. Bidding will take place in Prozorro.Sales, where a separate section of the Land Bank will be created. One lot is one plot. Their area is from 1 hectare to 4,000 hectares – this is the maximum size of the plot.
