Agricultural Revolution: New Land Leasing Opportunities in Ukraine
Ukraine has launched the «Land Bank» project, resulting in contracts for leasing agricultural lands amounting to 584.9 million UAH (14.2 million USD) since October 2024, as reported by the Ministry of Economy.
A total of 20,521 hectares have been leased.
What to know about the “Land Bank”
This project allows farmers to lease land parcels owned by state agricultural enterprises through online auctions on the «Prozorro.Sales» platform.
On average, seven participants compete for each lot, significantly increasing the rental price, noted First Deputy Prime Minister of Ukraine Yulia Svyrydenko.
«This represents a new approach to managing state assets that benefits the economy and agricultural business across Ukraine,» added Svyrydenko.
69.1% of auction winners are small and medium-sized agribusinesses. Among the tenants, some have signed over 20 contracts and are actively cultivating these lands, stated the CEO of the «State Land Bank» Yaroslav Yaroslavskyi.
Project Outcomes for the “Land Bank”
Since October 1, 2024, 506 online auctions for leasing state agricultural lands covering 35,235 hectares in 17 regions of Ukraine have been conducted on the «Prozorro.Sales» system.
As a result, contracts for a total area of 20,521 hectares were signed from 271 auctions.
The highest competition among participants was in the Vinnytsia region, with an average of 22 contenders per lot. The Poltava and Cherkasy regions followed with an average of 14 participants each.
Among the contracts, the highest average price per hectare was in the Ivano-Frankivsk region at 47,500 UAH, while the lowest was in Transcarpathia at 3,496 UAH per hectare.
«In just the first six months of operation, the “Land Bank” became a leader in attracting funds among all organizers of land auctions on the “Prozorro.Sales” platform since autumn 2021,» stated the CEO of «Prozorro.Sales» Serhiy But.
As of April 3, the «Prozorro.Sales» system has 394 land parcels available for sublease covering nearly 12,000 hectares.
Among the available lots is the largest object from the first pool of the «Land Bank» — a parcel of 3,969 hectares in the Kirovohrad region with a starting price of 13.7 million UAH.
The smallest parcel, measuring 0.03 hectares, is located in Transcarpathia.