Ministry of Economy, Environment and Agriculture: In the first year of the Land Bank, farmers paid UAH 1.19 billion for the use of state land

Over the first year of the Land Bank project, farmers paid UAH 1.19 billion including VAT for the use of state-owned agricultural land. Through open online auctions in the Prozorro.Sale system, 62,194 hectares – previously in the shadow economy – were transferred into lawful use.

“The Land Bank is an example of how transparent and competitive mechanisms can dismantle shadow schemes and replace them with real opportunities for farmers. From the first pool of 90,900 hectares, 62,000 have already been legally transferred, generating almost UAH 1.2 billion in payments to the state budget. We see the effectiveness – and this result must be scaled up so that every hectare of state land contributes to the development of the agricultural sector and the economy,” said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.

Since 1 October 2024, 73,800 hectares of state agricultural land in 19 regions of Ukraine have been put up for auction. During this period, 927 contracts were concluded as a result of open and competitive bidding for the right to use state land.

“We have proved that state land can work effectively and transparently, benefiting both the state and the people. Farmers gain access to land, communities gain resources, and the state receives stable revenues. And this is only the beginning – a second pool of land is already being prepared to expand opportunities for Ukrainian farmers within the Land Bank project,” emphasised Ihor Tymoshenko, Deputy Head of the State Property Fund of Ukraine.

High interest and competition – an average of five bidders per lot – helped establish market prices: today the average sublease rate is UAH 19,100 per hectare per year including VAT.

“The largest revenues from the use of state land came from farmers in Kharkiv region – UAH 238 million including VAT. Despite the difficult conditions of a frontline region, local farms continue to operate and develop their businesses. We observe consistently high demand for state land among small and medium-sized agribusinesses across all 19 regions where the Land Bank operates. This confirms the effectiveness of a transparent mechanism that gives everyone fair access to land resources that previously lay idle or were in the shadows,” said Yaroslav Yaroslavskyi, Director General of State Land Bank LLC.

In total, 4,539 bids were submitted over the year. 91.3% of the winners of Land Bank auctions were representatives of small and medium-sized agribusiness, demonstrating trust and equal access to state land for farmers and agricultural enterprises across the country.

“In its first year of operation within the Prozorro.Sale system, the Land Bank has proven effective in managing state agricultural land. It leads among 1,100 organisers of land lease auctions both in revenue and in the number of completed auctions. Nearly one-third of all funds raised from land lease auctions come specifically from the Land Bank. Its lots also show the highest average growth in price and demand compared with other land offered through the system,” underlined Sergiy Boote, CEO of Prozorro.Sale.

The highest average value per hectare (including VAT) of state land was recorded in Lviv region – UAH 54,890/ha – and in Ivano-Frankivsk region – UAH 46,792/ha. The highest sublease rate was also set in Lviv region, where a local farm pays UAH 71,832 per hectare of state land (including VAT) annually for a plot of 45.1 hectares.

By contrast, the lowest average price was observed in Zakarpattia – UAH 5,115/ha including VAT – where competition was also lowest, with an average of two bidders per lot.

Over its first year, the Land Bank has demonstrated the effectiveness of the mechanism: state agricultural land is emerging from the shadows, generating stable budget revenues, and providing farmers with fair and equitable access to farmland. It is an example of how transparent instruments can fundamentally change the approach to managing state land assets.