Increase of normative money estimation of agricultural lands in 1,756 times will cause farmers to additional expenses in amount 4,4 bln UAH in 2012. It was reported by the Association "Ukrainian Agribusiness Club" (UCAB), commenting that the increase of normative money estimation was caused by the Decree of CMU from the 31st of October 2011 № 1185 «On amendments to the methodology of normative money estimation of agricultural lands and population centres».

Experts of UCAB make an accent than in the worst position will be those companies, which till 2012  dynamically increase rental rates, raising them in some individual cases for 7-10 % from normative money estimation. Rental payments for such companies will be simply exorbitant, because 2000 UAH per hectar is a half from total production expenses for cereals or oilseeds. Instead of it those companies, which didn’t hurry to raise the rental payments will be the gainers – from now on also other companies will be forced to use their experience.

«Certainly, the basic idea of the Decree 1185, sounds attractive, – comments the President of UCAB Alex Lissitsa, – it is all about the attempts to increase the earnings of rural people. But we couldn’t forget, that money should be firstly earned and only after that paid».

Experts of UCAB underline, that such decision was not a first step concerning the agricultural sector, – at one time the introduction of export duties for grain was based by the necessity of budget replenishment and curb inflation. «Objectively the consequences of such decision were rather pitiable – the budget didn’t get the expected costs and all Ukrainian export sales markets went over to Russia», – remarks Director General of UCAB Volodymyr Lapa.

Expert has doubts, that the state while taking this decision estimated all possible consequences of additional expenditures for farmers for rental payments and resowing of cereals or oilseeds ( till 4,4 bln UAH) in the terms of reduction of world prices of main cereals compared to 2011 and inaccessibility of credit recources.

UCAB reminds that reforming of land relations bears also other risks for farmers. In particular, possible introduction of restrictions for lease of agricultural lands, foreseen by the raft law «On land market», could threaten the activity of most agricultural companies, which in last years lengthened big land areas on the rent basis in order to increase the efficiency of agrarian production. According to A. Lissitsa, companies, which handle more than 7 million hectares of land, find themselves in a risk area, that endangers the agricultural sector and state economy as a whole.