Today the market of agricultural lands is introduced in a "turbo mode” in Ukraine. The Verkhovna Rada of Ukraine has adopted the bill No. 2178-10 "On Amendments to Some Legislative Acts of Ukraine on the Circulation of Agricultural Lands" in the first reading and is actively preparing for the second reading.

The land reform is not only an economic issue, but also a social one. Thanks to the investments of farmers rural areas are developing today. And, as statistics show, small and medium-sized agrarian business, which cultivates 75% of the country's agricultural land today, provides twice as many jobs as agro-holdings and pays far more taxes to local budgets.

However, instead of creating conditions for the development of small and medium-sized agrarian business, Bill № 2178-10 consolidates and strengthens the position of oligarchs in the agricultural sector of Ukraine. The position they have taken as a result of political corruption, unfair distribution of public funds and unfair preferences.

UAC highlights that a document that is relevant to Ukraine should be consistent with the interest of all participants in the agrarian sector, not its individual entities. That is why, based on the suggestions and comments of agrarians, the UAC specialists prepared amendments to the bill that would give an impact to the development of small and medium-sized farming as a basis for  existence of the village, rather than strengthening the position of the oligarchs.

In particular, there were proposed such things as:

  1. Introduction of the land market in two stages. UAC insists that in the first 5 years, agricultural land can only be sold to individuals who are the citizens of Ukraine and no more than 500 hectares per one person. The priority right of purchasing the land as an individual has the owner of the company that leases the land, subject to payment of the price at which it is sold.
  2. Granting, at the second stage, the right to buy agricultural land for legal entities, owners (participants, shareholders) who are exclusively citizens of Ukraine. This approach will ensure full disclosure of true business owners. This rule will not allow any back channels for buying land by foreigners and “shell” companies. This norm will also allow the owners of companies to avoid taxation when paying dividends to parent companies.
  3. Establishment of a limit on the maximum land bank, which can be owned by one person, including related persons. It cannot exceed 5 thousand hectares.
  4. Imposing restrictions on the total area of ​​agricultural land in use and ownership - no more than 20 thousand hectares, with the exception for existing companies, but not more than the area of ​​land that is  already being cultivated.
  5. Giving the right to legal and natural persons, engaged in dairy farming, to purchase the agricultural land above the set limit at the rate of 2 hectare per 1 cow.
  6. Prohibition of the sale of land to persons who will not be able to confirm the origin of their funds, using which they intend to purchase the land.
  7. Within a year from the date of the adoption of the land market bill, adopt the national referendum bill and hold a referendum on granting foreigners the right to acquire agricultural land.     

These are the key suggestions of the farmers. 

We urge the deputies to stand on the side of farmers and submit these amendments to the second reading of the bill.

Tuesday, 26 November 2019

 

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