Suspended the launch of the land market will be the driver of development of rural territories – Maxim Martyniuk


This was stated by first Deputy Minister of agrarian policy Maxim Marinyuk, during a round table at the Gorshenin Institute, devoted to the discussion of land reform.

“Simultaneously the removal of the moratorium, for example, through the procedure of parliamentary representation in the constitutional court, carries a number of risks, in particular the establishment of unreasonably low prices, excessive concentration, which could be offset with a more gradual land reform”, – he said.

Established with the launch of the liberal model, with all its market advantages, will lead in the short run to the transition of land from shareholders, many of which are not efficient owners, in large agrarian formation.

The average link – the farmers – will be eliminated from the market because they cannot compete with the big players in the access to capital for the redemption of the land Bank. This will increase the negative economic and demographic trends in rural and intensificare employment problems, because the model of large agropredpriyatie common in Ukrainian agriculture, requires a minimum use of manual labor.

“At the same time, smart market launch, with restrictions, with preferences for farmers could be a driver of rural development”, – said Maxim Martyniuk.

Soon the government will present finansirovanii variant of the concept of land reform that will be proposed for consideration by the deputies. The developers of the bill and studied the world experience of introduction of the land market, primarily in European post-socialist countries, which have passed through a difficult transformational periods.

It is expected that the draft law on turnover of agricultural land can be made a package with the draft law on land consolidation, which would guarantee the right of use of the current tenants and the law on the support of farmers, which will have preferential terms of purchase of land for this category of market participants.

Recall that the moratorium on sale of agricultural land covers 27 million hectares of lands of agricultural purpose owned by 6.9 million citizens. A ban on the sale of agricultural land in Ukraine has been extended eight times, most recently on 6 October 2016.

If the constitutional Court finds the relevant provisions of the Land code are contrary to the Basic law, this will automatically start the land market in Ukraine. Will keep only one limit on ownership of agricultural land by foreign nationals.