Why land reform is needed
The land reform opens up new opportunities for landowners, farmers, communities and all Ukrainians who previously had no opportunity to acquire and dispose of land. The reform contributes to the economic development of regions and the country as a whole. Economists predict that the land market will contribute more than an additional 3% to GDP growth annually.
The reform was launched in 1990 with the adoption of the Resolution of the Verkhovna Rada of the Ukrainian SSR “On Land Reform”, which recognised all the lands of the Ukrainian SSR as subject to land reform. The opening of the land market in 2021 is a key event in the land reform, but not the only one. The land reform also includes decentralisation of land management powers, digitalisation of services, restoration of irrigation and drainage systems, and countering land raiding.
What does the opening of the land market offer?
Land can be bought, sold, exchanged, inherited, or taken out a loan secured by land for the development of farming.
Until 2024, this right was granted only to individuals, and from January 1, 2024, legal entities can participate in market operations.
Foreigners can NOT buy land, and this decision can only be changed through a referendum.
What does digitalization offer?
Now, in a few clicks, Ukrainians can access information from state registers about land plots, which in turn brings them out of the shadows and ensures transparency of land relations. All of this increases the security of both the farmer and each community.
Digitalization helps to protect property rights of the owner, contributes to the growth of land prices, eliminates corruption risks, and increases the effectiveness of countering raiding. In addition, digitalization helps to attract investors to communities, as it makes it possible to see plans for the development of the community's territory, its infrastructure, and the ability to choose ways to develop it.
What does land reclamation offer?
Rehabilitating the reclamation system will help to use water efficiently and prevent water theft. It will also create jobs and innovations in the regions.
Land reclamation adds value to the land and thus increases the efficiency of farming.
Communities and landowners will be able to earn more income from rent and become more attractive to investors.
Land reclamation will revive degraded land, increase its value, increase soil fertility and yields, and protect it from climate change.
Land reform cannot be reduced to the sale of land or to the land market alone. Land reform involves a comprehensive update of Ukraine's land and other legislation, which should ensure effective, beneficial functioning of land relations based on the principles of a market economy, including private land ownership, for both society and its individual members.
As a result, Ukraine has left the dubious company of four countries that still do not have a land market and is now using its asset, land, to develop its economy.