In Ukraine, 2019 was marked by more record crops of grains and oilseeds, the abolition of the state monopoly on production of alcohol, and a high-profile bill set to launch historic land reform in October 2020, if adopted.
The most significant event for Ukrainian farmers in 2019 was the long-awaited shift in land reform. The Verkhovna Rada (Ukrainian parliament) in December approved on first reading a bill on farmland circulation and interrupted the twenty-year tradition of extending the moratorium on farmland sales. The new parliament ignored all pleas of influential opponents of land reform, and the moratorium was lifted effective January 1, 2020. The fight for Ukrainian land in the Verkhovna Rada led to a several-week delay of the second reading as over 4,000 amendments have been introduced. Deputies will consider them all in January.
So this will be a decisive moment for the launch of the land market, which the government plans to start in October 2020. What is exactly known today about the model of the future market? There will be no foreigners on it yet. Only Ukrainians will be able to acquire land, while foreign citizens and companies from other countries will be granted such a right only if Ukrainians agree to it in an all-Ukrainian referendum. The ban will also affect Ukrainian agricultural holdings with foreign capital.
It is also known that no more than 10,000 hectares could be sold per individual no matter how many companies and legal entities they register. This should protect smaller farmers from the massive purchase of plots by major players. The price per hectare, experts say, could reach about US$2,000 in the first year after the launch of the market. The price may vary depending on the region, soil conditions, and competition. In the future, the price per hectare will directly depend on lending rates in Ukraine.