In January-September, 2018 local budgets received 129 million UAH from land auctions. For comparison, for the entire 2017, this amount was 118 million UAH. This was reported by Maksim Martynyuk, Deputy Minister of Agrarian Policy and Food, on his Facebook page.

The average rental rate on the results of auctions increased from 14.73% of the normative monetary estimate of the land in 2017 to 18.67% in 9 months of the current year, notes Martyniuk.

In his opinion, this means that the service component in the public sector is clearly better than that of private land owners. They lease their land for rent much cheaper.

At the same time, it became very expensive to disrupt the land auctions, as the penalties for non-fulfillment of the contract terms reach 100% of the final annual rent.

Traditionally, the last three months of the year is a period of peak activity of land auctions: the harvest is collected and sold, farmers have money and they are thinking about expanding business. Therefore, by the end of the year, the gap from last year’s indicator will be even greater, added Martyniuk.

In favor of the land auctions development in the public sector, an electronic platform for the sale of land lease rights has appeared in Ukraine. The pilot project was launched by the State Geo Cadastre together with “SETAM”. The first lots have already been published in the OpenMarket system.