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Identify the key scenarios of development of a land market in Ukraine

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The draft law on turnover of agricultural lands in the Parliament had to submit not later than March 1, 2019 — that was the demand of Parliament, which passed in December of last year, the extension of the moratorium on land sales. By mid-April, the document is still not registered in the Verkhovna Rada, says the League.

Parliamentarians have developed as many as four options of land reform. They are all in the order of publication. Wednesday, 10 April 2019, in the Land of the forum the head of the agrarian Committee of the Parliament Oleksandr Bakumenko presented them to the participants.

In all versions of the bill are General provisions. First, to buy land can the citizens of Ukraine, farms, the company founded by Ukrainians. The question of whether to give this right to the state and territorial communities is still open. Foreigners from buying Ukrainian land is impossible. If a foreigner buys a share in the company, during the year, it is obliged to sell the entire agricultural land, which it owns. Secondly, during the year since the entry into force of the law on the land market and the right of redemption of mortgage of agricultural land will have banks, mortgagees. The price of private land will be determined on the basis of its normative monetary value. The priority right to purchase lands will be tenants of land, family members of owners of land, owners and users of adjacent to the object of sale lands, also farms, located on the territory of the municipality that sells land. To resell the plot can not be earlier than two year from the date of purchase. To change the purpose of land the owner will be able not earlier than five years from the date of purchase of the site.

Further — differences. What MPs propose?

Option 1. Regulated market

The first option for reform involves the introduction of a land market in three stages. During the first, which will last three years, MPs propose to introduce restrictions on the purchase of land. For physical and legal entities of the rules differ.

For farms without legal entity status introduces a limit of 20 hectares. there is also the increase in the number of lands in the ownership of natural persons up to 500 hectares after 5 years of farming and 2,000 ha after ten years. work in the agricultural sector.

For registered farms in the status of the legal person during the first stage, the purchase of land is limited to the area of 200 ha. In the second stage of the reform 4-7 years after the law's entry into force — up to 500 hectares for legal entities that at least 75% of the profits obtained from agriculture and working in the field for at least three years. After seven years of operation — up to 20 000 ha. Around the figures of debate.

An important caveat: one person can register only one farm. And the land owned by the state and municipal property, can be sold only at land auctions.

Option 2. Controlled market

This option offers the simultaneous opening of the market for natural and legal persons that are based exclusively Ukrainians. Purchase limit — not more than 200 hectares.

In this embodiment, are allowed to buy private as well as public and communal land, however, watermedia right to resell shares of the statutory capital of the company is the owner of the land.

Option 3. Phased controlled market

The third reform option is the symbiosis of the first two. Deputies suggest to enter the market in two stages.

First — during the first three years — provides for a limit on the amount of land to individuals 20 hectares for farms with the status of legal entities — 200 hectares for companies and the agricultural sector for more than three years and having at least 75% of the proceeds from agricultural production up to 500 ha.

The second stage — in the fourth year of the law provides for a limit of 20 000 ha for agricultural enterprises with the status of legal entities.

Option 4. The liberal market

In the liberal market model of the earth citizens of Ukraine are permitted to be founders of unlimited number of farms. And the maximum area of land is limited only by the antitrust laws.

However, now discussed the option of introducing a limit on the amount of land to individuals.

Source: propertytimes


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