A reform of the land market will save limitations

Реформу земельного рынка спасут ограничения

The news of the impending cancellation of the moratorium on land sales has stirred up the Ukrainians. Anyway the land question applies to all. Whether or not to allow the sale of earth – opinions differ. On the one hand, the right of private ownership implies that the owner can it and sell it. On the other hand, the earth is just the case when for a pittance you can inadvertently “to sell the Motherland”. It is no secret that many of the Ukrainians are poor by European standards, will rush to sell their hard-earned shares. And it may happen that a poor seller with them will be the state of Ukraine, which at the request of foreign creditors sell their farmland. And who can guarantee that instead of “agricultural superpower” we’re not gonna become the battlefield for world markets: profitable today to sow canola and Ukrainian black soil is depleted the full, beneficial, nothing to sow – and the country “is under steam”. Public examination in order to clarify possible consequences of the opening of the land market, posed the following questions to the experts.

Vice-President of the Union of members of agricultural service cooperatives of Ukraine Vitaly Lviv, believes that such a measure is many:

“Definitely need. But so that the buyer disposed of in the public interest and the interests of the population of Ukraine. For example, in the U.S. land market after the Second world war works like this: if the farmer sells the land, the first thing it can redeem the state. And state in America, where private property is the Holy of holies, was bought and has at its disposal more than 40% of agricultural land. We have many “stakeholders” and companies are ready to seize on favorable terms very tasty morsel.”

Yevgeny Babich, Director of agribusinesses, says that first you need to decide a number of issues:

The land market need to open, but first to solve several key issues. As soon as the land becomes property, agriculture, immediately move on to another level of effectiveness and relationship to the land will be quite different. Who will be its owner? The Ukrainian people or the transnational corporations? You need to limit the ability of nonresidents to own Ukrainian lands. Otherwise, the Ukrainians will never see this asset. The next issue is lending. If the land market opens, and the funding rate will be for Ukrainians, 20% (today the average for Ukrainian companies) and multinational companies – about 1-1,5% (for which they are funded by Western foundations), you do not need to be an economist to predict who in this situation will be more efficient and competitive.

Informed “News” wrote a large analytical article together with the research centre on how to work the land reform.