Transparent farmland market provides for land capitalization — opinion

Ivan Kun, General Director of Interproject GmbH
Photo by: Latifundist.com

The land is an asset, and a transparent farmland market will allow capitalizing assets. This opinion was expressed by Ivan Kun, General Director of Interproject GmbH.

"There are often accusations that one is selling his homeland, etc. People don't want to understand that land is an asset. The transparent land market will allow capitalizing assets, and increasing the capitalization of assets will increase the capitalization of business activities of each company," said Ivan Kun.

In his opinion, agribusiness has reached a fairly high level of development and further development is rather difficult. Ukraine is rapidly increasing grain production but one day the absence of a land market will be a serious constraint for everyone. Therefore, first of all, market players should take responsibility for solving the land issue.

"Indeed, many market participants do not have the financial means to buy out their shares. This aspect should be considered in the legislation. There is a need for an effective mechanism to provide financing, first of all, for medium and small farmers. These are 5-6 thousand farms in Ukraine, which are formed today as a political class. They are financially strong enough, have an understanding of the market and influence local politicians. And politicians at the national level need to deal with the problems of the judicial system decentralization. The movement of these political interests should coinсide at some point to finally and irrevocably resolve the issue," he added.

According to him, the work in the pilot region would give the opportunity to systematically remove all the questions and select an effective model, which is needed by the participants right now.

As previously reported, the launch of the farmland market in Ukraine might proceed within a year.