Free land market: the Ukrainians will be richer, but not immediately

26.07.2011 16:22
Articles about real estate | Free land market: the Ukrainians will be richer, but not immediately Land reform will have to implement in practice than a year.

Parliament in the autumn is going to start with consideration of the bill "On the land." And the document, and the idea of ​​a free sale of land remain the subject of debate. Meanwhile, the moratorium on the alienation of land is terminated January 1, 2012 The first time it was adopted in 1992 and extended several times due to lack of relevant laws, chief among them - on the state land cadastre and land market. An attempt to extend it to 2015 fell in March this year, BP has rejected the bill without review.

Related article: Regulatory monetary valuation of land Zhytomyr completed by 97.5%

However, the moratorium is not only not interfere with the formation of informal land market, but also often led to loss of soil fertility. "The citizens donated their land to rent for short lines, and manufacturers tenant for several years grown on plots one and the same culture that led to the depletion of the soil" - says the president of the association "Land Union of Ukraine" Andrew Koshel.

What scares the land market

If you believe the sociological research, a free market of agricultural land the Ukrainians do not want. "According to a World Bank survey, 51.5% of Ukrainian population against the land market. Another 17.7% of the population are against it, but agree to support the introduction of the market to create appropriate conditions ", - said director general of the association" Ukrainian club of agrarian business "Vladimir Lapa. In his view, such attitudes were formed as a result of privatization, when people have invested their vouchers in objects, but instead got nothing. Therefore, the state must convince the owners that the reform of their rights will be protected.

Manufacturers of tenants on the open market also speak carefully. "We are afraid of a land raider. I have a farm 2.5 hectares of leased lands are irrigated systems "Frigate." If an owner will bring your site, the "frigates" can be discarded: to jump through isolated areas they may not. Overlapping of making it impossible to effectively use modern technology "- said president of the Agrarian Union of Ukraine Gennadiy Novikov.

Agrees with him, the head of the board of SIA "Stiomi-Holding" Michael Stadnyk. "Most owners in rural areas need money to survive. And if the free market will sell 2-3 million hectares in one year, even at $ 500-600 per hectare? At the country will be approximately $ 3 billion is to be crazy inflation ", - he warns - Today the free market is not needed, but you need to create a state bank of land, evaluate them and then sell at auction or lease. If in Ukraine went that way, then shaped to the real thing, without the speculative element of market players, decided on the price of land the state reserve. That is what should be the normal beginning of land reform. "

Speculators and corrupt - the battle!

After the land reform may be the subject of speculation. "Whatever the new laws, but existing regulations still leave the practice of our wild land market", - the president of the Association of Farmers and Private Landowners Nicholas Mirkevich. He was familiar with cases where aliens have become investors Ukrainian firms, leased land, but do not handle it, and wait for the free market to resell. "With the introduction of the market these sites because of the high cost of Ukrainian farmers simply will not get" - sure Mirkevich.

Fend off social tensions in rural areas in the reform should be development of roads, cultural and social spheres. Meeting these challenges should take the state, it is responsible for reducing corruption in land relations, said the head of the Center for "Land Reform Policy in Ukraine" Maxim Fedorchenko. At the same time "corruption sterility" of the bill on the ground gives him doubts. "The state's role in this project is excessive. For example, Goszemagenstvo: it and the Institute of Licensing, and it also manages the land. The action of the proposed rules of the bill alienation of land in the state will be in manual mode, which creates conditions for corruption ", - said Fedorchenko.

In anticipation of investment

Legalized the right to purchase land to raise investment attractiveness of the agricultural sector, experts believe, the financiers. "To achieve economic growth, including in the agricultural sector, Ukraine needs foreign investment. And there are many schemes for their effective involvement, while not giving foreign national land resources. But such methods are not viable, while in Ukraine there is no legalized ownership of land, not a normal instrument of collateral to raise funds ", - the director points out," Alpkot Capital Management "in the Ukraine, Dmitry Hem.

In his view, the very possibility of buying land will increase the amount of foreign investment. "The Russian agricultural companies in entering the IPO are estimated at 1.5-2 times more expensive Ukrainian just because of the fact that they have the opportunity to buy land. Ukraine's agricultural potential is vast, but the end result does not depend on economic ownership, but from funds that can attract agribusiness. Ukraine's agribusiness has reached a far-sighted companies with foreign capital are going to work in the country regardless of when - after 5, 10 years - in fact, begin to act immediately free land market ", - he said.

What all this will go?

Experts believe that the introduction of land market as a positive impact on the agricultural sector and the economy as a whole. To do this, politicians must abandon the populist rhetoric and clearly explained to villagers what to expect after the reform. "In our country, about 100 thousand subjects of agrarian business, and holders of units - 7 million Politicians are always ready to flirt with those with more potential at the polls. Everyone is talking now, it does not give obezzemelit villagers. But not on private property as such determines the ratio of subject to the ground, and the prospects for economic vision ", - said Gennady Novikov.

The need for proper emphasis on economic prospects agree Maxim Fedorchenko. "If the earth will be involved in market turnover, and then power on the whole, and all the Ukrainians, one way or another, will become richer. But the economic effect will not be soon, "- said the expert. This way, the redistribution of land in favor of wealthier citizens. "It is socially unattractive, but the country should stop" fanning passions "and to experience" acute phase "the beginning of the land market", - said Fedorchenko.

In general, all agree that alternatives to the introduction of the free market of agricultural land there, and adopting a law on state land cadastre, and submitting to parliament a bill on the land market, the authorities have the political will to reform. At the same time, in its conduct must proceed with caution: new rules should be tested in a test mode as an example of regional projects. Analysis of the results will modify the rules and avoid outbreaks of social unrest with the introduction of land markets on a national scale.

Content tags: land Legislation
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