According to the official information released by Ukrainian Government Land Lease Agency companies operating in agricultural sector of Ukraine and leasing land will pay the total of UAH 9.8 billion (USD 1.2 billion) for land leases. Agricultural companies have already paid UAH 20 M to land owners as of April 1, 2013. UAH 4.2 billion will be paid to retired senior citizens that own land being leased, which is accordingly 42.9% of the total future payment. Companies have already signed 4.74 million land lease agreements as of the current year. Average annual payment is evaluated at approximately UAH 563.5 per hectare with the total area of 17.5 million hectares being leased.

AgroInvest comment: Law that would legalize the official sale and purchase of land is still in the works and is not expected to be out until late 2014-early 2015. Companies will proceed leasing land in Ukraine for the next 2-3 seasons.

UkrAgroConsult