The cost of agricultural land in Ukraine should be USD 400-600/ha

One hectare of agricultural land in Ukraine should cost USD 400-600.

This is informed by Aleksandr Shpichak, Dr.sc.oec and NAAS Academician, writes Zerkalo Nedeli.

"Let us calculate the price of agricultural land, assuming that in 2016 the purchase and sale of this resource would have already been allowed, and the rent for 1 hectare of arable land would have been UAH 1.64 thou. So, the price of 1 hectare of arable land through the capitalization of the rent with a deposit rate of 15% per annum (1640: 15x100) would be UAH 10.93 thou., or USD 428 (at the rate of UAH 25.55 per U.S. dollar)," Alexandr Shpichak says.

According to him, some researchers argue that the price of land before the lifting of the moratorium should not be predicted at all, it will be determined by the market.

"I cannot agree with this. For the functioning of traditional markets of agricultural products and food (wheat, sugar, milk, meat, etc.), analytical work is carried out to determine the forecasted price level. Then why are we declaring in Ukraine that we are to launch the market? Why are we moving away from the price forecast for such an important and unique commodity as the land?" the scientist contemplates.

According to his calculations, in order to buy 1 hectare of land, in France it is necessary to work 2.1 months, in Czech Republic — 3.5 months. If we take the average for Ukraine period of 3 months, the price of Ukrainian land, taking into account our real payment, will be USD 609.

Earlier it was reported that according to the Memorandum "New Agrarian Policy of Ukraine", which was supported by Batkivschuna and agrarian associations, the moratorium on the sale of agricultural land may be extended until January 1, 2023.