Limits on the sale of land and actions of the government are the main challenges for the agricultural sector of Ukraine

The increase in land sale limits and the lack of clarity regarding the government's decision to extend the 5-7-9 preferential lending program until March 2025 are the main challenges for the agricultural sector of Ukraine. According to the Deputy Chairman of the All-Ukrainian Agrarian Council, Denys Marchuk, agricultural producers are concerned about the increase in the limits for the sale of land to 10,000 hectares in the same hands. The current conditions in the land market are not competitive to take on large legal firms, and not only from the agricultural sector. Farmers who protect the lands on the front lines are concerned that their businesses could be ripped apart by big companies with funding.

In this regard, he recalled that the association appealed to the President of Ukraine and the Prime Minister to postpone the increase in the limits for the sale of land during the war, but there is still no decision. And although the government promises through the State Guarantee Fund certain financial instruments for small agricultural enterprises that cultivate up to 500 hectares, medium-sized businesses have not been offered any support.

Touching on the subject of agricultural lending, D. Marchuk noted that in 2023, the losses of domestic commodity producers in crop production will reach more than 3 billion euros. The cultivation of sunflower, wheat and corn does not cover the cost. Because the prices of these types of agricultural products have decreased. We will have difficulties again during spring sowing. Due to the lack of working capital, farmers will apply the minimum amount of fertilizers, plant protection products, and buy seeds of lower quality. Therefore, it is extremely important to continue the program of preferential lending to agricultural producers for another year. These loans will save product manufacturers.

"Most of these funds will be directed to re-crediting, unfortunately, not to development," - summed up the deputy chairman of the VAR.

In this regard, we should note that the Verkhovna Rada's Committee on Agrarian and Land Policy recommended for consideration in the second reading a draft law that simplifies the procedure for changing the purpose of land for industrial construction. According to the Deputy Chairman of the Committee on Economic Development, Dmytro Kysilevskyi, who is the author of the draft law, the document provides for a radical simplification of the procedure for changing the purpose of land from agricultural to industrial. Acceleration and cancellation of certain procedures will reduce the time from submitting an application for changing the purpose of land for plant construction to its approval from 1-3 years to 1.5 months. This will be very relevant when the post-war reconstruction of the economy begins in Ukraine.

The author of the document emphasized that such a decision will become especially relevant in the period of post-war reconstruction of the country. He added that the Ukrainian side will be able to offer investors a quick and convenient procedure for allocating land plots for energy and industry facilities. He emphasizes that the adoption of the law now will make it possible to eliminate the multibillion-dollar corruption market for officials, who for generations have been making money by "accelerating" permits.