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23 July 2024

News

09.08.2012

Land shares’ owners received 6 billion UAH of lease payments in 2011

The amount of de facto paid lease payments to land shares’ owners in 2011 was 6,03 billion UAH. According to the Association "Ukrainian Agribusiness Club" (UCAB), it is about 20% or 1 billion UAH more than in 2010.
Basically, the growth in payments took place due to the increase in rent price for 1 ha of farm land to the level of 350 UAH in 2011. The UCAB Vice President Volodymyr Makar claims that because of the increase in payments, 4,5 million owners of land shares received, at average, 1300 UAH for the land leased. "This is the significant additional income for needy rural population, especially for rustic pensioners who own more than one half of leased farm lands in Ukraine", - emphasized Volodymyr Makar.

Mr. Makar believes that the improvement of working conditions for farmers is the key to increase the income of rural population. "Creation of favorable working environment for agribusiness has positive impact on welfare in rural areas. After all, if an agricultural enterprise is profitable, it can pay lease payments and decent salaries to the staff", - the Vice-President of UCAB said.

However, the increase in regulatory pecuniary evaluation of farm land by 75%, introduced ​​in 2011, can lead to rather negative consequences. To overcome a sharp increase in rent in the very unfavorable year of 2012 is possible for those farmers who do not care about rural areas, the employment and fertility of land, whereas small farmers with less profitability will carry a risk.

The expert says that the moratorium on changing tax environment in agriculture, transparent governmental support and efficient regulatory policy should become key factors in development of agricultural production. "Under the following conditions the amount of lease payments in 2015 can reach 10 billion UAH due to the competition between lessees", - Makar underscored.




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  • Agroresurs
  • AMAKO
  • Limagrain
  • Zeppelin
  • Amazone
  • LNZ Group
  •  Agricom Group
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  • Сygnet
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  • NCH Advisors
  • Continental farmers Group
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