Should not hurry with the lifting of the moratorium on land





17.11.2010 10:15
Articles about real estate | Should not hurry with the lifting of the moratorium on land Progress in the agricultural sector is constrained by many factors, however, ownership of land does not belong to them.

To date, the moratorium prohibits foreign companies to buy agricultural land in Ukraine, forcing them to take the area to rent for a period of 5 to 20 years.

Each year, distributed more calls to lift the moratorium on the sale of land because the limited term of the lease allegedly preventing further investment and development of a promising but undeveloped agricultural sector of Ukraine.

Perhaps, in part, all it is, but this view is overly simplify the situation and, basically, moving those who have a vested economic interest in lifting the moratorium.

It is believed that after the lifting of the moratorium, when the land can be bought and sold, its owners offered a tidy sum in accordance with the current market value. Many would be wise and invest capital in an unexpected small company that provides children studying at university, and grandchildren - a decent future.

Nevertheless, in most cases, it will all happen very differently. People will soon lose the unexpected capital as either squander it, or simply become victims of fraud. And return it did not happen.

When the moratorium is lifted, the land - sold and the money - is spent, the former landowners will no longer receive regular annual income.

With the current state of affairs favorable to landowners annually receive rent in cash or cash combined with seeds and straw, used, sold or exchanged as required. That income seems to be very modest compared to the cost of land, however, it is permanent.

When the moratorium is lifted, the land - sold and the money - is spent, the former landowners will no longer receive regular annual income.

You should also not forget that with the growth of world population and reduce the area suitable for food production, demand for land increases and, consequently, increases and its cost.
Instead of prosperity, it can lead to a slow extinction of the village if its residents will go in search of a better life.

Old low-productivity combine harvests wheat in the Poltava region. As of November 5, Ukrainian agriculture was brought from the fields of about 41 million tons of grain. According to the government, due to adverse weather conditions, the level of harvest compared to last year fell by 11%.

This high figure, and this crop will be enough to Ukraine retained its status as one of the leading grain exporters in the world, but yields remain relatively low and leaves about 2.8 tonnes per hectare.

Despite the favorable climate and some of the most fertile soils in the world, crops in the agricultural sector of Ukraine from year to year are much lower than in developed countries, which use more efficient methods of fertilization, irrigation and harvesting.

Experts predict that if in the next ten years, the agricultural sector of Ukraine to attract billions of dollars in investments, the yield may rise three times and turn the country into an agrarian superpower world level. (Jaroslav stout).

By itself, land rent and fees it will not cause a widespread revival of rural areas. This requires a state initiative, but the lease payments will contribute to the process and should be considered as part of a broader socio-economic situation.

In a country where more than 26% of the population lives below the poverty line, the most efficient way of allocating foreign investment - is to guide them to where they will have maximum effect - namely, in the hands of the people.

When the land is sold, any benefits that it can bring in the future, to leave the country in the form of dividends and distributions to shareholders.

When the land is sold, any benefits that it can bring in the future, to leave the country in the form of dividends and distributions to shareholders. Some of them will return in the form of further investment, but will be invested in tractors, machinery, fertilizers and chemicals which are produced mainly by foreign companies that care about their own income shareholders.

Many landowners are personally interested in how they treated the land and how it operated, because many of them live directly on in their area or nearby. Improper use of fertilizers or chemicals of nowhere.

Large enterprises, at least for the moment, try to contact an experienced qualified and suitable to the use of land resources professional. However, effective methods introduced by large companies could not solve such problems as pollution, disturbance of habitat of animals and soil degradation. And who knows how to run the economy will be in the future?

If the land belongs to its owner, then, theoretically, it could affect the management of the land. Actually, if he does not like the current tenant, he can throw him out and take the land of another.
With the sale of parts of the local population will lose leverage over management of the land and the possible consequences for the environment.

Perhaps such a system of relations make tenants properly, responsibly and consistently manage the land. But with the sale of parts of the local population will lose leverage over management of the land and the possible consequences for the environment.

This system is suitable for tenants. From their point of view that need not look much money to buy the land - is also an advantage. This opens up the investment market to a larger number of smaller investors, and thereby increases the amount of investment coming into the country. In addition, significant savings on the purchase of land, can be embedded in equipment, raw materials and infrastructure, where they will bring big profits.

Many observers believe that the lack of land property rights inhibits the development of Ukrainian agriculture. According to them, if the company owned the farmland, it would raise productivity. But in Britain, where higher yields of Ukrainian, despite the less fertile land and more stringent weather conditions, most households do not own their land. There, the difference is insignificant. Last year, the average yield of wheat in the UK amounted to slightly less than eight tons per hectare, which is several times higher than the Ukrainian indexes.

Agricultural development in Ukraine prevents many factors, but the ownership of the land can hardly be attributed to their number.
www.zagorodna.com

Content tags: land
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