The expansion of the agricultural land market, which is envisaged by law in 2024, will be beneficial to companies financed from abroad. Small and medium-sized agribusinesses will find themselves in unequal conditions on the land market, given the martial law. This will further threaten the development of rural areas.

Currently, the law allows individuals to buy 100 hectares per person, and in 2024 it is planned to expand the purchase to 10,000 hectares for individuals and legal entities. Farmers are asking to limit the possibility of buying land, leaving 100 hectares in one enterprise's hands for the duration of martial law and for 2 years after the victory.

The UAC Deputy Chairman Denys Marchuk explained:

 "The land market was launched so that it could function for everyone: both small and medium-sized entrepreneurs in the interests of Ukraine and Ukrainians. The land market conditions laid down in the national legislation and were not designed for a full-scale invasion. Currently, farmers are ensuring food security, producing in a wartime, working at a loss for more than a year due to the inability to sell grain at market prices, and helping the army. The UAC alone has handed over more than 1,200 pieces of equipment to the Armed Forces of Ukraine. Under such conditions, domestic farmers cannot compete with large companies that can get loans abroad."

Farmers have already asked the authorities to postpone the launch of the land market in large volumes, but to allow legal entities to enter the market.

"Starting from 2024, if there are no changes, legal entities will be able to buy up to 10,000 hectares of agricultural land, but only if their founders are Ukrainians. These are very large volumes that will block small and medium-sized businesses, which are the backbone of the country's agricultural potential. That is why we have appealed to the Prime Minister, the relevant committee, and the Ministry of Agrarian Policy to consider postponing the change in the limits, and we hope for a positive response, and we are ready for discussions and debates. We have arguments, we are looking forward to a dialog," emphasized the Deputy Chairman of the UAC.

The land market should support the development of small and medium-sized businesses and rural areas, but this will not happen under martial law.

"When the agricultural land market was launched, it was said that it would be an opportunity for small and medium-sized businesses to own land and invest in it. But now these funds are not available. Therefore, increasing the limits to 10,000 hectares from 2024 in the context of the war is one of the factors that can lead to the creation of super-large latifundia, and small and medium-sized businesses will not be competitive. Large technological agribusiness does not require a significant number of people in the fields, and the population in rural areas will not be involved. If we want to develop communities, create the potential for value-added production, develop horticulture and livestock farming, we need small and medium-sized businesses. Otherwise, the development of rural areas will be hampered," Denys Marchuk asserted.

Monday, 7 August 2023

 

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