A clod in a throat

This issue was discussed three decades, pouring from a sieve, constantly. And with the same regularity emerge the same obstacles for the emergence of the market — the registry is not ready, there is no legal regulation, no legislation. The desire to change all that too. According to the Memorandum with the IMF, the Parliament should approve the law on turnover of land by the end of may. Time, project of the government land reform has not been seen, lying in there were no voices for hearings on the land market and the relevant Minister, announced his resignation. Experts enthusiastically discussed the constraint options for buyers, and land owners — opportunities to use these limitations to their advantage.

Kutovoy not “tripped on the ground”, and this decision has no principled position. Kutovoy didn’t make the team, not brought to the Ministry “their”, and his first Deputy, the man became Prime Minister Maxim Martyniuk. The program Kutovoi “3+5” is a set of slogans and cliches. No specifics — objectives, plans, deadlines. He was initially in the Ministry of Agriculture is not in his place, and at the first opportunity (it is, according to ZN.UA talking about the Governor’s chair) left it. While the Ministry will remain with the person Groisman. As to the word, and many other public service and state enterprises, which the Prime Minister has an interest. Very convenient and always brings fruit. Acting — diligent performers, because every caterpillar dreams of becoming a butterfly. Acting bear a minimum of responsibility for the decisions taken. The acting is almost not reporters. And the Prime Minister will not rush finding a new Minister of agriculture. Not now. Not during the reform.

Supposedly the Cabinet is a kind of working group, creating a land reform project. Detail — enough to swear, to buy land only for physical persons-residents and only 200 ha in one hand, the minimum sales price is the normative assessment of the land. In addition, immediately after the market launch in each administrative district at auction will be sold to a small (20 ha) land plots belonging to the state, to show people what the cost is relevant and the market.

This declarative, full of conditions and caveats, the approach is intended to help small farmers, limiting the possibilities of large landowners, but essentially all of these requirements are designed to start the market, and freeze. Wanting to buy a piece of arable land among real individuals. And these few will have to get the funds for the purchase from under the mattress because banks are reluctant to lending in General, certainly will not risk giving out loans for the purchase of land “physicists” — too seriously at the time, got burned in the mortgage boom. And on the basis of what documents to do — passports and INN? Whiskers and a tail?

The assumption that under such conditions the land will be pledged, even more absurd. Ukrainian banks are now feel great and well earned on the purchase Deposit certificates of the NBU and government bonds. It is profitable, legally and without risk — thanks to the Cabinet and the regulator. And then they offer to give out loans to individuals secured land shares, which, if anything, to sell, too, can be only natural persons and in limited quantities. Oh, and one more detail — if the land is sold within three years from the date of purchase, the seller must pay to the budget 50% of its appraised value. Even the fact that the government owns half the banking sector will force banks to participate in it and to save this absurd idea.

To see a list of those few citizens who own large amounts of money, while remaining individuals, you can on the website of the declarations of civil servants. Others take part in “land reform,” hardly. But we do not believe that this model was created only in order to associates of the Prime Minister could put their suitcases in the cache. It is a compromise, trying to please everyone and not offend anyone. The stability of the shadow of the land market, it does not undermine, the ability of large enterprises to rent the units for a nominal fee, not restrict, the cost per hectare of land and will increase if that is not essential.

And somewhere in the background a special state enterprise will be to sell at auction land state and municipal property. The Parliament has registered two alternative parliamentary draft law “on turnover of agricultural lands” (No. 5535 and 5535-1). They also involve many restrictions.

The first draft proposes to introduce the mandatory procedure of control of transactions for the sale of agricultural land by special commissioners. If the owner of the unit in the sale will be prejudiced, the supervisors will be held responsible before the landlord and will reimburse him for the loss. Kind of like a system of legal protection of shareholders from the tyranny of buyers.

However, it is not clear how unit-holders who made unwise financial transactions on purchase/sale will prove the involvement of commissioners and their possible collusion with the buyer. In reality, the institution of Plenipotentiaries is a powerful shield that protects the new owners from the old, not Vice versa. After all, to be embroiled in litigation with lawyers to try to prove their dishonesty, and to demand from them (not new owners) monetary compensation will want a few.

The project also proposes to introduce the concept of minimum land prices and the introduction of a life annuity to the former owners. The minimum price is set at 20 years of rent and life annuity in the amount of the average rent for the last 20 years. Generally a reference to a rent that is substantially understated, does not seem justified, especially in the case of rent. Everyone understands that a short time after the opening of the market value of the land will begin to rise as the cost of rent. Binding to average, and even over the last 20 years is nothing more than the desire to promise the shareholders of the annuity, paying them in the end mere pennies. Thus, as the rents for life, the obligation to pay is transferred from the buyer to the buyer upon further resale. Among the buyers of land — the Ukrainian agricultural producers and farmers, which will not deter the necessity to pay an annuity to the former owners. The authors do not impose any restrictions on the payment of the agricultural land in the authorized capital of legal entities.

In the second bill we are talking about the gradual opening of the market. At launch buyers can make only physical persons-residents, state and local governments. In subsequent phases, it will join the legal entities and physical persons-entrepreneurs. Restrictions for sale, but there are restrictions on land concentration in the hands of up to 500 ha. Which, of course, simply impossible to get around. Moreover, individuals owning more than 200 hectares of land will be required to submit an electronic Declaration and to indicate the source of funds for their purchase. For example, such a source can be “VLAN saumagen” — a universal language that never fails.

Of course, all bidding for the sale of land is just electronic and only on a competitive basis. However, it is only in respect of public and communal lands. Shareholders such transparency is not offered because no one has created such services for citizens. Can handle yourself. Why would they auction and platforms? On the market sell.

And yet the authors offer immediately enter the market, price regulation and set a minimum price for the sale of land. Based on expert assessment. Who are these experts and how they will land to appreciate, yet difficult to understand. We know only that for land owned by individuals, provides a formula — not less than 20 rentals. And it’s a bit even given the fact that over the past year lease of farmland increased. But for the sale of agricultural lands of state and communal property, even the reference to lease no. Just the price “at the level of expert money estimation”.

© RIA Novosti, Vasily Litos | go to fotoannunci black earth

Also introduces a restriction of the ability to change the purpose of land within three years from the date of purchase. And before January 1, 2020, the legal person will not be able to make the purchased agricultural land in its capital.

Land reform from the Ministry of Agriculture, a member of the program “3+5” is not reform. In the centre — a proposal to sell the land, and the right of its lease. That, in fact, already happening. Moreover, the legal mechanism for these lease rights be used as collateral to obtain a Bank loan, no. As there is no willingness of banks such deposits to make. Reform without reform is very comfortable with large agribusinesses, which in principle are not interested in opening up the market, because then they will have to pay more, but at the same time to participate in an unprecedented redistribution with unpredictable results. Of course, no one in the current stable prosperous world APK doesn’t want such shocks. Doesn’t offer them and the relevant Ministry, laying on never market preparation for its opening.

The area of land leased under contracts at the beginning of 2016, is 15.8 million hectares, which is over 57% raspaevannyh agricultural land. Total payments for the lease of land shares according to the concluded contracts as of January 1, 2016 was $ 12.9 billion UAH, or UAH 862/ha. Sale of lease rights on agricultural land began in 2015. They have had a positive impact on the price, she has since increased by 70%, but still remains relatively modest. The positives end. Sale of lease rights has nothing to do with open transparent and manageable market. This preservation of the current state, when officially you can buy the right to lease, and informally — whatever you want. Of course, at the I. O. Martyniuk policy may change, he is still a person of the Prime Minister and looks at the prospects for the development of the sector otherwise, but whether these changes are drastic, given that the “Premier” version of reform is also a breakthrough call.

In the sector there are a number of real problems that need to be addressed before market open. Most of the area of responsibility of the relevant Ministry, which systematically lays, from quarter to quarter, the development and approval of do need regulations. In Agriculture, skillfully telling the unwillingness of the market, that, except as the right to lease, we can’t sell, but do not explain why the Agency does nothing to to change this situation. At least on the query ZN.UA what regulatory acts that need reform have been undertaken, and how the hands of the officials have not realized, the Ministry of Agriculture decided not to answer. But the source ZN.UA the Ministry commented on a situation so: “Technically, the Ministry is ready to prepare any necessary regulatory documents in the shortest possible time. Moreover, many of them are already almost ready. But we expect a unified position of power, political solution. We must understand that we prepare. And it depends on many things — develop a unified position in the Cabinet, negotiations with the deputies and, separately, with the agricultural lobby. And there is no time. The question needs to be agreed before June”.

Try to outline a circle of questions without answers that are important to open a civilized land market. For example, at the legislative level is still not regulated procedures for the use of Unallocated and unclaimed plots of land and shares, and also of lands of collective ownership, land consolidation and land swaps. Not completed the transfer of information from the State registry of lands in the State land cadastre on the land, the ownership of which citizens get to 2013 And statements of officials about the lack of reliable and timely information in the inventory is different as a mockery to take does not work. Cadastral inventory is certainly a major task, but over the years it can be done. According to the latest data, in 2017 began the creation of protocols for the correction of systematic errors in the inventory. Initiated the creation of the protocols. Feel the frantic pace of reforms?

The essential market infrastructure — the auction, the land Bank, appraisers, insurance companies, land management organizations, bodies of registration of rights and so on. — not even started. But their work should be regulated by some acts of Ministry.

The state program for the control of rational land use, preservation and restoration of their fertility not. While government funding to conduct environmental studies of the soil is reduced as the volume of research. And this in a country where only the Chernobyl zone does not fall into the category of “hard farming” and where the preservation of the quality of the land is, perhaps, the only thing that really supposed to worry.

We are not even talking about such “thin” setting, as the creation of effective mechanisms of attraction of credits on the security of property rights and/or the introduction of a mechanism for the implementation of secured transactions with land to obtain long-term loans. And only in passing mention that still after three years since the start of decentralization, has not completed the process of transfer of authority of village, town and city councils for the disposal of agricultural land located outside settlements.

All this and more — the priorities of the government and relevant ministries. The steps necessary to create a normal civilized market. Steps that no one even tries to do. Somewhere in the order of the normative monetary value of agricultural land, the necessary amendments to the Law “On valuation of lands”, and documents regulating the control over observance of land legislation. Everything else, even it is not.

And now let’s remember why we want to launch the land market? What for to break spears? The right of people to freely dispose of his property is sacred, but they are on the black market control it. The government violates the constitutional rights of shareholders, and those, reciprocating, buy and sell, despite the moratorium. Civilized, regulated and transparent market, we need not so much for “constitutional justice”, but for the sake of investment. All of the above reform options investors are not interested except it is very risky. The government will draw the money on the market, full of restrictions, categories, exceptions to the rule? Many sell and to whom, giving 200 hectares of natural persons only? Banks will lend to these buyers, which liens and security — the desire to buy land and hope to harvest?

Maybe the government is lifting these restrictions at this stage? When market regulation is not done nothing? . Because it creates enormous risks for current owners and for the economy. All these many restrictions and special rules — eloquent testimony to the unwillingness to land reform.

All draft legislation and reform options do not create any incentives for the purchase and sale of agricultural land left in the legal field. They’re raw, absurd, unprofessional. That the hand of numerous agrarian Confederation and the parliamentary populists — they can require extending the moratorium for another five to ten years. And they will not blame malice and greed. We are really not ready, because is not ready. In the end, society is again divided into those who are for the abolition of the moratorium, and those who are against. And no one will be in the ranks of those who follow normal civilized market.