In record time, more than 25,000 Ukrainians have signed the UAC's petition to the President of Ukraine to postpone the 100-fold increase in the limits on the sale of agricultural land to one person. During the war, when peaceful mass gatherings and protests are prohibited, electronic petitions have remained the only way for society to communicate directly with the government.
Today, during a press conference, the Ukrainian Agri Council (UAC) called on Volodymyr Zelenskyy to consider their appeal as soon as possible. The farmers emphasized that they are expecting to receive a meaningful answer from the President - whether he considers it necessary to increase the limit on the purchase of land "in one hand" from 100 hectares to 10,000 hectares in the context of the war. Given the enormous importance of this issue for the country as a whole, the position of the President as the Head of state is important to farmers.
The UAC called on Volodymyr Zelenskyy to take into account the position of all market participants and submit relevant legislative initiatives to the Verkhovna Rada: to postpone the increase in land sales limits from January 1, 2024, for the duration of the war and for two years after its end.
According to Andrii Dykun, Chairman of the UAC, medium-sized agribusiness is not against land reform and the presence of legal entities in the market, but farmers are against increasing the limits on the sale of land "to one enterprise" from the current 100 hectares to 10,000 hectares in the context of war.
"The active voting for the petition shows how serious is the issue for farmers. Small and medium-sized businesses, which produce 60% of agricultural products, do not have the funds to buy land. Given the low prices for agricultural products, logistical problems with sales, lack of financial resources and labor due to the war, farmers are unable to become full-fledged participants in the land market.
Before that, we appealed to the Ministry of Agrarian Policy, the Cabinet of Ministers, and the Agrarian Committee of the Verkhovna Rada of Ukraine to postpone the increase in land purchase limits, but we received no support. That is why we are now forced to appeal to the President of Ukraine," emphasized Andrii Dykun.
According to Mykola Pyvovar, director of ‘Andriivka’ Private Enterprise from Kharkiv region, most agricultural enterprises are currently operating at a loss, even with loans.
"The agricultural sector is unable to operate within the innovations in land legislation that are envisaged from January 1, 2024. Agribusiness was working in good conditions when the land reform was being developed, but the war made adjustments. During martial law, there cannot be a market to sell 10,000 hectares. In addition to the fact that farmers financially support the Armed Forces, the agricultural sector is highly leveraged. We are grateful to the government for the preferential state loans, but another year of working at a loss and the industry will go bankrupt," he explained.
In addition to the priority Peace Formula, the state should develop a program for rural development and support for the occupied and de-occupied territories. This was emphasized by Oleksandr Mohylevtsev, a military farmer and owner of an occupied farm in Zaporizhzhia region.
"Our enterprise, which has been developing for 30 years, has been occupied, nationalized and looted by Russia. It will take time and resources to restore it. Until the war is over, the land market is definitely not the right time. Today, there are no conditions under which Ukrainian farmers can develop. Someone is shedding blood for land, and someone is preparing to buy it. Where is the patriotism, national interests, equal conditions with the oligarchs, financial support for the agricultural sector, and the demining program? I believe that as long as there is a war going on, the sale of land is out of the question. Instead, we need rural development programs, programs for the development of deep processing, and financial compensation for de-occupied and looted enterprises."
According to Alla Stechyshyn, Chairman of Kalyna Loshnivska farm in Ternopil region, increasing the limit to 10,000 hectares will force farmers to reorient from helping the army to finding financial opportunities to purchase land.
"Farmers are uniting and helping the Armed Forces as much as possible. Each company in its district supports mobilized workers. In particular, my company allocates more than UAH 500,000 per month to help the army. When the sale of 10,000 hectares of land begins, the farmer will have to protect his business - buy the land where he has worked all his life so that it is not bought by someone else. What will be the priorities - to help the Armed Forces or to buy a land plot? And what is our common goal today - to speed up the victory and bring our guys back alive!" emphasized Alla Stechyshyn.
The agricultural sector is waiting for a public response from the President and hopes that the Head of state will support the industry that works for food security and victory.
Monday, 27 November 2023