News
16.11.2012
Prices for Russia farmland returned to pre-crisis level
The dynamics of the land market in the Russian Federation over the past five years shows a rise in the prices of agricultural land after their decline with the onset of the global financial crisis, as well as market revival and increase of the total number of agreements, according to the head of the assets management company JSC Group "Razgulay" (Russia), Vitaly Bochkov, who will deliver a speech during the IV International Conference "Doing Agribusiness in Ukraine: prospects for 2013", which will be held on December 6 in Kyiv.
"Land market development in different regions of Russia is going in different directions and at different speed. It depends on the priorities of agricultural production, and the initial conditions of the region, both climatic and initial level of economic development of the agricultural sector. As to the trends over the past five years, the price of agricultural land increased. The prices reached their top in 2008 and then declined, but now in some regions the price exceeds the pre-crisis level, while in others it reached or came close to pre-crisis levels, "- said the expert.
As to the dynamics of prices on average, according to Vitaly Bochkov, for example, in southern Russia in 2007, 1 hectare of agricultural land costs about $ 900, in 2012 the average price rose to 1150 dollars for 1 hectare, which means that an average price increased by 30%.
"Maximum indices of land value were tracked in 2008 and 2012. These figures in 2012 are even higher than in 2008. This dynamics suggests the post-crisis recovery of the market and the potential for its further growth, "said the head of the assets management company JSC Group "Razgulyay" (Russia).
Speaking of customers, according to the Federal Law "On the use of agricultural land" foreign legal entities and individuals as well as stateless persons cannot have agricultural land as their property on the territory of Russian Federation, that is why there is no official statistics on foreign investment in land acquisition. Land assets are acquired by major Russian agricultural holdings, investment companies, and in some regions by local farmers, various small agricultural producers. Officially, all the land is bought by Russian legal entities and individuals. However, foreigners are very often among the founders of such entities.
If you want to learn more about the dynamics and peculiarities of the land market in Russia, to communicate with Vitaliy Bochkov and other experts, and learn what might be the implications of the agricultural land market management in Ukraine, please attend the IV International Conference "Doing Agribusiness in Ukraine: prospects for 2013", December 6, Kyiv. More information can be found here.
Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
Tetiana Kotyk
www.agribusiness.kiev.ua
The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.
