Opening of agricultural land market in Ukraine

Abstract

The article examines the functioning of agricultural land market in Ukraine. The basic parameters of the existence of legislation on land, the protection of the rights of owners of land plots, the possibilities of buying and selling in the context of land relations, the activities of agricultural holdings are analyzed. It is determined that land, labor and capital should function as goods in market economy, as factors of production. The significant role can be played by state that has capabilities for determination the presence of appropriate levers of power. The land, like other natural resources located within the territory of Ukraine, are objects of property rights of Ukrainian people. The Basic Law entrusts state with the function of protecting rights of all subjects of property as well as business rights. It has been determined that reforming of land sector is in one way or another affects interests of almost all citizens of country. The basis of agrarian reforms is land reform. The land market in Ukraine will be introduced on July 1, 2021. Citizens of Ukraine, legal entities of Ukraine, territorial communities and the state will be able to acquire ownership of agricultural land plots. The total area of agricultural land plots owned by citizen and legal entity may not exceed 10,000 hectares. It is determined that the limit of 100 hectares and the right to purchase the land plot have only individuals by January 1, 2024. Until January 1, 2030, the sale price of agricultural land plots allocated in kind (on the ground) to the owners of land shares (shares) cannot be less than their normative monetary value. Calculations are made in non-cash form. According to the Ministry of Economy, the average cost of renting a hectare of land in Ukraine is 1,700 hryvnas per year. After the introduction of the market, it can grow to 4000 hryvnas in 2024. According to government data, the average cost of hectare of land after the opening of the market will be about $ 2,200, but if the sale of land to foreigners is prohibited, this amount may be lower.