The rent for the use of farmland in Ukraine in 2020 grew by an average of 6.5% compared to 2019, to Hr 3,380 per ha a year, in a number of areas the rental cost exceeded the standard pecuniary valuation of land by 15% due to high competition between tenants, the Ukrainian Agribusiness Club (UCAB) said in a press release on May 21.
“Such a tendency to an increase in rent has been observed in the past few years. At first, competition between agrarians forced to increase the rent in contracts. As a result of the recalculation, it has slightly decreased,” Expert on land issues at UCAB Ellina Yurchenko said.
According to her, the increase in land rent in 2020 is explained by the active implementation of land reform and the expected opening of the land market.
UCAB said that the most expensive rent of farmland in 2020 was in Kyiv region, where it amounted to Hr 4,990 (a rise of 5.5% compared to 2019), Ternopil and Khmelnytsky – Hr 4,680 each (a rise of 9% in both regions), and Vinnytsia – Hr 4,560.
UCAB said that in 2020, the largest increase in rent occurred in Chernihiv region – by 19% compared to 2019, Volyn region – 11.5% and Rivne region – 11%.
According to UCAB, lower rents in the southern and eastern regions are due to lower land yields due to a drier climate, and the slight increase in rents in these regions in 2020 is due to losses over drought.
