Auctions have begun in Ukraine within the limits of the Land Bank project

Within the framework of the project "Land Bank", which was introduced by the State Property Fund of Ukraine, the first auction for the lease of agricultural land was held. According to the press service of the Ministry of Agrarian Policy of Ukraine, 14 participants competed at the first auction for a plot of more than 115 hectares in Vinnytsia region. The winning rate for its rent was more than 3 million UAH. In total, on October 1, the State Property Fund of Ukraine conducted 16 land auctions on the platform "Prozorro. And by the end of the year, the SPFU plans to put nearly 100 thousand hectares of state agrarian lands in 20 regions of Ukraine for electronic auctions.

The area of ​​land that can be rented varies from 1 ha to 4 thousand hectares. Each land is exposed to an online auction with a separate lot, which allows to rent both large areas and small areas. The starting value at the auction is 12% of the regulatory and monetary valuation of the Earth.

It should be noted that according to the results of the first 16 online auctions from the sublease of state agricultural lands, the total amount of winning rates exceeded UAH 35 million. The first lots were 16 land plots in Vinnytsia region with a total area of ​​1075 ha. 94 participants competed for them - both farms and agroholdings registered in Vinnytsia region. Such competition has increased the total value of the sublease of state lands more than 8 times compared to the starting prices, which indicates a significant interest from agrarians. The average cost of sublease was 33 thousand UAH per 1 ha. The most expensive lot was the land plot in the Kaliniv city territorial community of 262 hectares. Its final cost amounted to UAH 8.5 million (excluding VAT), when the initial was UAH 1.1 million. 44 participants competed for the right to use it, and the price during bidding increased more than 7.5 times. The winner was a local agricultural enterprise. At the same time, the greatest competition was observed for a land plot of 38 hectares in the Kaliniv city territorial community. 51 participants competed for the right to use it, and the initial price of the sublease increased from UAH 170 thousand to the victorious - UAH 1.2 million.

In total, 10 participants were the winners of the auction. Within 20 working days, they are obliged to conclude a sublease agreement and after that within the next 5 working days to pay the proposed value of the asset and an additional VAT - a total of UAH 7 million. Thus, the overall economic effect of the first 16 Auctions of the Land Bank may exceed UAH 42.5 million. After payment, the winners will be entitled to use the land for 14 years.

It should be noted that the Minister of Agrarian Policy and Food Vitaliy Koval has already predicted the increase in the value of the Earth by about 20% in the next few years. In an interview with Forbes, he noted that the Earth gradually was gaining price. If in 2021 the average cost was about 39 000 UAH/ha, now-46 000 UAH/ha. The price in UAH will gradually increase and in the next few years it can increase by about 20%. The minister added that the land market gradually became commercial. If in 2021 more than 74 thousand land plots (more than 178 thousand hectares) received a new owner, then this year more than 194 thousand plots have already been alienated, which is almost 400 thousand hectares. Such indicators, in his opinion, indicate the effectiveness of land reform.