SPFU announces first auctions for lease of state land
Kyiv • UNN
The SPFU plans to put up 100,000 hectares of state land in 20 regions of Ukraine for electronic bidding by the end of the year. The project provides farmers with access to land on transparent terms through online auctions.
The State Property Fund of Ukraine is launching a large-scale project to lease state agricultural land at open auctions in the Prozorro.Sale system. This was reported by UNN with reference to the SPFU.
Details
By the end of the year, the SPFU plans to put up for electronic auction about 100,000 hectares of state agricultural land in 20 regions of Ukraine.
As of now, there are only land plots in Vinnytsia region with a total area of 1075 hectares. as of August 30, 30 auctions have already been announced.
The Fund explains that this project provides farmers with access to state land on a transparent and competitive basis through online auctions.
This opens up equal opportunities for all farmers: from large agro-corporations to small farmers looking to expand their business. As well as for beginners and IDPs who want to start an agribusiness. The area of land plots varies from 1 hectare to 4 thousand hectares. Each land plot is put up for online auction as a separate lot, which allows you to rent both large and small areas. The starting price at the auction is 12% of the normative monetary value of the land
The introduction of a transparent system of leasing state land through electronic auctions is an important step in the modernization of land relations. This will ensure fair competition among farmers, help attract investment in the agricultural sector and develop rural areas.
To participate in the auction, farmers need to select a lot, register on the electronic platform, pay fees and take part in the auction. The winner will receive the right to lease for up to 14 years for annual plantations or up to 25 years for perennials, paying a sublease fee for a year in advance.
The introduction of the Land Bank is the result of joint work of the State Property Fund with the Ministry of Agrarian Policy and Food of Ukraine and the Ministry of Justice of Ukraine. To implement the project, the SPFU created the State Land Bank LLC, the first state-owned operator of agricultural land that is 100% owned by the state
It is noted that the next regions where land plots will become available are Khmelnytskyi, Kirovohrad, Kyiv, and Zaporizhzhia.
AddendumAddendum
Vitaliy Kovalnyi, Head of the SPFU, emphasized that the project will not only allow for the efficient use of state land and support for agricultural producers, but will also fill budgets at various levels.
At the first stage, we expect revenues of up to UAH 1 billion, and with the consolidation and involvement of all state agricultural land, the total area of which is about 800 thousand hectares, this amount may increase to UAH 8+ billion
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