Rating of regions with low land rent

Infographics from the State Service of Ukraine for Geodesy, Cartography and Cadastre will help to compare the costs of rent for 1 hectare of land by regions and find out, in which areas the land shares are cheaper.

Thus, according to summarized information, the average cost of rent in Ukraine is 1613.4 UAH/ha. However, the owners of land shares received about 1369 UAH/ha in 2017. The total area of rented private agricultural lands is 16,900,000 hectares.

Last year the lowest rent was paid in Zaporizhia (878 UAH/ha), Kherson (926.9 UAH/ha) and Zakarpattia(930.6 UAH/ha) Oblasts. The using of lands was more expensive in Cherkasy (3524.7 UAH/ha), Poltava (2970.1 UAH/ha) and Kharkiv (2494.7 UAH/ha) Oblasts.

In Kirovohrad Oblast, the average cost of a land share renting is 1422.4 UAH/ha. Although this rate is higher than in the Kherson and Zaporizhia Oblasts, it is lower than in the neighboring Cherkasy and Poltava Oblasts.

The rent costs for state-owned agricultural land have increased. Since the beginning of this year, the average cost has increased to 3431.5 UAH/ha, whereas last year this rate was 2793.2 UAH/ha. In general, in 2018, the rent of state-owned land was 2.13 times more than for the use of private land.

The most costs for the rent were in Khmelnitsky (7780.8 UAH/ha), Vinnytsia (7136.9 UAH/ha) and Poltava (6627.3 UAH/ha) Oblasts, and the least costs – in Kherson (1402.3 UAH/ha), Volyn (1441.8 UAH/ha) and Donetsk (1637.8 UAH/ha) Oblasts.

According to the Ministry of Agrarian Policy, a significant increase in the average cost of state-owned lands is connected with an increase in the efficiency of land auctions.

Most people think that the reasons for the cheap rent of private lands are the local monopoly of lessees and the absence of a free land market.