Manipulations and dissemination of false information about the position of the Ukrainian Agri Council (UAC) on land reform have begun in the information space.

We emphasize! The UAC has been systematically advocating for the implementation of the reform and the development of a transparent and civilized turnover of agricultural land since the beginning of the land market launch.

In August of this year, the UAC made a public statement emphasizing that it supports and does not oppose the continuation of land reform in 2024, namely, it supports the admission of legal entities to the agricultural land market.

At the same time, the war has made its own adjustments, and therefore, until the end of martial law and 2 years after it, the UAC proposes to leave the current limit on the volume of agricultural land purchases for both individuals and legal entities at the current level.

The UAC takes this position because the legislative changes to the conditions of agricultural land turnover, which are envisaged from 2024, were developed for peacetime and are inappropriate in the context of Ukrainian farmers going through perhaps the most difficult challenges in the history of independent Ukraine: they constantly suffer financial and physical losses due to blocked ports, destroyed production facilities, and shelled and mined Ukrainian fields.

At a time when domestic agricultural producers have been operating at a complete loss for the second year in a row due to existing logistical problems and low domestic agricultural prices, increasing the limit on the purchase of land in one hand from the current 100 to 10,000 hectares will not bring any practical benefit to small and medium-sized agricultural producers. They simply do not have the funds to buy agricultural land.

In fact, the aforementioned increase in the limit of agricultural land in ownership, under the current conditions, can only be beneficial to those companies that have the ability to obtain financing abroad by raising loans, issuing bonds, etc. In fact, a small number of agricultural companies. The rest of the agricultural producers will remain deprived of this opportunity at least until the end of the war.

Therefore, the position of the UAC is not contradictory and will allow to continue the land reform and introduce a full-fledged agricultural land market in Ukraine. At the same time, the approach proposed by the UAC will ensure a fair balance between all market participants.

Friday, 15 September 2023


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