Farmland price in Ukraine to grow 5x within a decade — PM Shmyhal
In 10 years, Ukraine's Gross Domestic Product (GDP) will generate up to USD 80-85 bln from land market development, Prime Minister of Ukraine Denys Shmyhal stated during the presentation of Audit of Ukraine's Economy and Economic Development Vectors until 2030.
According to him, during this time the average cost per hectare will grow almost 5x.
Related: Factors That Form Farmland Prices in Ukraine
"Ukraine underused its land potential at USD 85 bln. 29 years free use of land was limited, which means that its value was undervalued multiple times," explained Denys Shmyhal.
He noted that over 5 mln ha of farmland fell out from the state's management during this time. In addition, the development of irrigation and investments in agriculture were blocked for decades and sometimes stopped even.
"The time has come to fix it and the process is already on," summed the PM.
As a reminder, the land turnover law may be recognized unconstitutional by the CCU. The joint application of 48 and 53 MPs on the constitutionality of the law liberalizing the land market in Ukraine since July 1, 2021, was submitted to the CCU in September.
On March 31, 2020, the Verkhovna Rada of Ukraine adopted the Draft Law No. 2178-10 "On Amendments to Certain Legislative Acts of Ukraine Regarding the Turnover of Agricultural Land" in the second reading. Land market opening in Ukraine is scheduled for July 1, 2021.
President of Ukraine Volodymyr Zelenskyy signed the law on April 28, 2020.