The Ukrainian government by its resolution of October 31, 2011, approved a coefficient of the normative pecuniary value of farm lands. Starting from January 1, 2012, it will be 1.756, which means rising of the pecuniary value of land from UAH 11,900 to UAH 20,900/ha.

Rising of the land price will entail rising of rent, which makes up UAH 303/ha (USD 1 /UAH 7.99) on average in Ukraine.

By expert calculations of the Ukrainian Agrarian Confederation, as a result of re-valuation, the average amount of rent in Ukraine next year will be UAH 533/ha. Taking into account that 17.4 million ha of lands are under rent, total rent amount will make up UAH 9.27 billion against UAH 5.28 billion, paid for rent in 2010. The least cost of land rent next year will be in Zakarpattia region - UAH 369/ha, the maximum - in Khmelnytsky region - UAH 601/ha.

Rent makes up about 10% (in 2010) in the structure of the products' price cost. In order to compensate for rent expenses, agricultural producers will have to economize on other items of expenses, in particular, on the wages.
 

Ukrinform