Run your own agricultural business

Frequently Asked Questions

• What is the Land Bank?

  The Land Bank is a transparent market for leasing state-owned agricultural land used by state-owned agrarian enterprises.

  This new investment product opens the door for every Ukrainian to start their own business by leasing a land plot via an online auction on Prozorro.Sale. It makes corruption impossible and removes any shady schemes.

• Who can lease the state land?

  Any Ukrainian resident, no matter if it is an internally displaced person, a farmer, a war veteran, a private entrepreneur or even an agricultural company.

• How long can the land be leased for?

  Depending on the land plot category:

  • 14 years – for the cultivation of annual plants
  • 25 years – for the cultivation of long-term plantations
• What is the cost of leasing state land?

  The starting (minimum) lease price cannot be less than 12% of the standard monetary value. Depending on the region, the starting rental price will range from UAH 3000 to 4000 per 1 hectare a year.

  The real value of the land lease will be determined by the results of land auctions on Prozorro.Sale in accordance with the “highest bidder wins” principle.

  Data from Prozorro.Sale shows that the price of leasing agricultural land at auctions can reach up to UAH 30-40 thousand per 1 hectare a year, as the price also varies depending on the soil grade (quality), location, accessibility and demand.

• How to participate in the state land lease auction?
  • Choose a lot.
  • Register on any platform connected to the trading marketplaces.
  • Apply for participation in the auction via the e-cabinet.
  • Pay the registration and guarantee fee.
  • Participate in the auction offering your winning bid.
  • Pass the qualification.
  • Sign an agreement following the auction results and pay the sublease fee for the first year.
• Why the Land Bank matters?

  About 700 thousand hectares of state-owned agricultural land plots are used by state-owned agrarian enterprises. These state-owned enterprises are constantly loss-making due to numerous corruption schemes, put in place to avoid paying taxes for using the state land.

  The Land Bank is a unique opportunity to start or expand a business for tens of thousands of Ukrainians. Businesses following clear and transparent rules means: a land lease for up to 14 or 25 years at an open auction, state aid under the 5-7-9 loan program, new jobs, revenues and tax payments

  A WIN-WIN situation. Both the state and citizens are winners: the budget is raised, jobs are created and business expands.

• Who will be responsible for managing all state agricultural lands?

  The Land Bank operators are responsible for managing agricultural lands. The 100% state-owned LLC “State Land Bank” is the first Land Bank operator.

  State Land Bank operators register land plots, prepare all necessary documents, and sublease them through online auctions on the Prozorro.Sale platform on a transparent and competitive basis. Land Bank operators work to ensure fair terms and legal protection to all auction participants and renters, as well as maintain the efficient use of land resources.