First auctions for lease of state agricultural land bring UAH 35.4 million to budget

On October 1, in the Prozorro system, the first 16 online auctions for the sublease of state agricultural land within the framework of the "Land Bank" project took place. According to their results, the total amount of winning bids amounted to UAH 35.4 million (without VAT).

This is stated in the message of the State Property Fund, Ukrainian News Agency reports.

"The first lots are 16 land plots in the Vinnytsia Region with a total area of ​​1,075 hectares. 94 participants competed for them - both farms and agricultural holdings registered in the Vinnytsia Region. Such competition increased the total cost of subleasing state land by more than 8 times compared to the starting prices, which indicates a significant interest on the part of farmers. The average cost of sublease was UAH 33,000 per hectare," the report says.

The most expensive lot was a 262-hectare land plot in the Kalynivska city territorial community, its final value was UAH 8.5 million (without VAT).

According to the report, 44 participants competed for the right to use it, and the price increased more than 7.5 times during the auction.

"In total, 10 bidders became the winners of the bidding. Within 20 working days, they are obliged to conclude a sublease agreement, and after that, within the next 5 working days, to pay the proposed value of the asset and additionally VAT - a total of UAH 7 million. Thus, the total economic effect of the first 16 "Land Bank" auctions may exceed UAH 42.5 million. After payment, the winners will receive the right to use land plots for 14 years," the message states.

During this week, 4 more auctions will be held for the sublease of state agricultural land in the Vinnytsia Region.

As Ukrainian News Agency earlier reported, as part of the "Land Bank" project on October 1 in the Prozorro system, the first auction for the lease of agricultural land was held.

The State Property Fund created the first state operator of agricultural land.

The State Property Fund estimates the total amount of state agricultural land at 806,000 hectares.