Farmland lease rights of UAH 12 mln sold in Ukraine

In August 2019, territorial authorities of the State Service of Ukraine for Geodesy, Cartography & Cadastre (StateGeoCadastre) exercised 314 lease rights to state-owned agricultural land plots in auctions. The total area of leased land plots amounted to 4.83 thou. ha.

By the results of land auctions, the amount of annual rent in Ukraine on average amounted to 19.84% of the normative monetary assessment, which contributed UAH 12.53 mln to the local budgets. The average lease cost per hectare is UAH 2.594.

In August, the lease rights to state-owned agricultural land plots were sold at a higher price in separate districts of Vinnytsya region (UAH 477.02 thou.), Luhans'k region (UAH 433.86 thou.), Zhytomyr region (UAH 425.58 thou.), Dnipropetrovs'k region (UAH 375.59 thou.), as well as Ternopil region (UAH 348.03 thou.).

In this period, the results of the auction for 66 state-owned agricultural land plots with a total area of 2.27 thou. ha were annulled due to the buyer's refusal to enter into a lease agreement or non-payment of funds for the purchased lot. The lease rights to these land plots will be put up for repeated land auction.

The State Budget of Ukraine for the year 2020 provides for UAH 4.4 bln to support the launch of the Land Reform, the Ministry of Finance of Ukraine informs in its presentation "Indicators of the Draft State Budget of Ukraine for 2020."