The Cabinet changed the rules of the lease of state agricultural land

The Cabinet of Ministers limited the term of lease of state agricultural land 7 years.

The Cabinet of Ministers limited the term of the lease of agricultural land state property 7 years and has established a minimum rental rate of 8% of the normative monetary evaluation of land.

This was announced by the Ministry of agrarian policy and food.

So, on June 7 the Cabinet approved the draft of the resolution Strategy for the rational management of agricultural lands of state property developed by the agriculture Ministry.

“Held in 2014, the analysis revealed that the majority of leases of state lands concluded for a maximum period of 49 years and a minimum rate of 3%, indicating corruption risks in the implementation of such transactions,” – said in the message.

The adopted document introduces the following rules: the transfer of state-owned land lease is carried out exclusively at the auctions according to a uniform starting conditions for a period of 7 years at a rate of not less than 8% of the normative monetary value of land; in case of refusal of the tenant from the land, re-transmission is also on auction.

Also introduced is the ratio of the area of land that can be transferred to the local level free of charge – not more than 25% of the area of land that was leased on a competitive basis for the previous accounting period; priority for land will be paid to the ATO participants.

The Ministry notes that these measures will stimulate the growth of local revenues from the transfer goszemel out, and it is expected that economic effect may be an additional 1 billion hryvnia to the end of 2018.

According to the agriculture Ministry, currently in state ownership is 10.4 million hectares of land – that is, 25% of all agricultural land in Ukraine.

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