New Opportunities for Farmers: Insights from the "Land Bank" Program

Ukraine has leased state agricultural lands worth 584.9 million hryvnias (14.2 million dollars) since the launch of the "Land Bank" initiative in October 2024, according to the Ministry of Economy.

A total of 20,521 hectares have been leased.

The "Land Bank" Project: Key Information

This initiative enables farmers to lease agricultural plots owned by state agricultural enterprises through online auctions on the "Prozorro.Sales" digital platform.

On average, seven participants compete for each lot, significantly raising the rental value, as stated by Ukraine's First Deputy Prime Minister Yulia Svyrydenko.

"This is a new quality of state asset management where land contributes to the economy and creates opportunities for agricultural businesses across the country," Svyrydenko emphasized.

69.1% of auction winners are small and medium-sized agricultural business representatives. Among the lessees are those who have signed over 20 sublease agreements and are actively cultivating these lands, noted the CEO of the State Land Bank, Yaroslav Yaroslavsky.

Outcomes of the "Land Bank" Program

Since October 1, 2024, there have been 506 online auctions for the sublease of state agricultural lands covering a total area of 35,235 hectares across 17 regions of Ukraine.

As a result, contracts for land plots totaling 20,521 hectares were signed from 271 auctions.

The highest competition was observed in the Vinnytsia region - an average of 22 bidders per lot. The Poltava and Cherkasy regions follow with an average of 14 participants per lot.

Among the signed agreements, the highest average price per hectare was in the Ivano-Frankivsk region at 47,500 UAH, while the lowest was in the Transcarpathian region at 3,496 UAH per hectare.

"In the first six months of operation, the "Land Bank" has become 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", Sergey But.

As of April 3, there are 394 land plots available for sublease in the "Prozorro.Sales" system, covering a total area of nearly 12,000 hectares.

Among the available lots is the largest object of the first pool of the "Land Bank" - a plot of 3,969 hectares in the Kirovohrad region with a starting price of 13.7 million UAH.

The smallest plot of 0.03 hectares is located in the Transcarpathian region.