Law of Ukraine "On Amendments to some Legislative Acts of Ukraine regarding the right to lease agricultural land for agricultural use for conducting agricultural commodity production"
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A draft Law of Ukraine "On Amendments to some Legislative Acts of Ukraine regarding the right to lease agricultural land for agricultural use for conducting agricultural commodity production"


In Ukraine agricultural holdings continues to develop actively. Today, in the country there are business groups with land bank from 50 to 532 hectaresand land of agricultural use are nearly eighty. By comparison, even in large Western European countries companies with land bank are more than 5 thousand hectares unit. There big latifundia are considered companies, which own or lease nearly 2 -3 hectaresof land.

Excessive concentration of land resources by agriholdings by displacement from the market of the lease land a certain number of farms and farmers, lead to further worsening of social problems in the villagers. Agroholdings are usually business projects, which purposes are the augmenting the capital of their founders. Support and development of rural infrastructure are not included to the range of interests of agricultural holdings.

It should also be noted that increasing of the size of holdings goes through acquisitions of agricultural enterprises and farms. It leads to the loss of working places for rural residents.

Agroholdings, are mostly registered in the regional, district centers and the capital, and therefore they do not pay taxes to local budgets.

Lack of taxes hinders the development and maintenance of rural infrastructures. Kindergartens, schools, hospitals and roads are not repaired or built.

That’s why, on February 6, 2014 the people’s deputy of Ukraine Grygorii Kaletnik with colleagues enrolled a draft Law of Ukraine "On Amendments to some Legislative Acts of Ukraine regarding the right to lease agricultural land for agricultural use for conducting agricultural commodity production" (registration number 4109).

The bill provides that the right to lease agricultural land for agricultural use for conducting agricultural production may acquire subjects of managing in a case of their registration at the location of such lands that will allow to increase money receipts to the revenue side of the local budgets.