The land market will give farmers the incentive of long-term investment in it

Open land market will provide the incentive to invest in agricultural projects with long payback period and growing more complex, but high-margin crops. This was stated by the representative of the economic strategy Center Dmitry yablonovskii during a round table on the topic “can land market to help significant increase in the number and economic strengthening of farms?”, according to “RBC-Ukraine”.

“Even if today the farmer has land in the long-term lease, he
has no incentive to grow a complex culture, to plant gardens and such. When
he will possess the land – the incentive will obviously appear,” said
the expert.

In his opinion, the formation of the full ownership of the land will allow
to attract Bank loans secured by the asset and
to allocate funds for development of investment projects, particularly in power
the processing of agricultural products. “But recycling is added value
which will allow you to move from commodity exports to exports with greater
added value,” he said.

It also indicates that market conditions – both external and
internal – conducive to the realization of Ukrainian agriculture. “In the last
time, we observe a strong recovery of economic growth, and
this means that recovering and domestic demand – emphasizes
Yablonovskii. – With regard to external demand. If earlier the key
geopolitical resource was oil and gas, which, because they appear
renewable energy reduces its value, then the following key
geopolitical resource is food. This is a very good opportunity
for Ukraine in the long term – and I would not like it
to lose”.

Total in Ukraine at the end of 2016 the number of operating farmers
farms were 33682 unit area of agricultural land in
their use – 4437,9 thousand hectares, or 22.3% of the total
land use by agricultural enterprises. On average
on one farm have of 131.7 hectares of agricultural land.