Farms for sale

Ukraine agriculture has been evolving since it achieved independence in 1991, following the breakup of the Soviet Union. State and collective farms were officially dismantled in 2000. Farm property was divided among the farm workers in the form of land shares and most new shareholders leased their land back to newly-formed private agricultural associations.

The total arable land in Ukraine is 32 mln ha but 4 mln ha of them are still untouched, so it is a good chance to start… Ukraine has always had special agricultural importance and so it was not by chance that it was commonly referred to as the bread basket‘ of Europe. Indeed, the country possesses one-third of the world‘s black earth soils, and these account forone-third of the total agricultural land area in Ukraine. Ukrainian farmland is fertile and cheap — a very attractive combination for investment. However, accessing this opportunity safely and efficiently is a challenge.

Calculation of cadastral value:

cadastral value = tax + price of land rent
The average price for land rent is 3.5% of the land price.
The normal income of Ukrainian farmer is 400 — 450 euro per hectare and the good one is 950 — 1000 euro per hectare

Market value of arable land

• Market Value in 2009/2010 MY — $350 — $450/ha
• The object of purchase — the right to lease land

Tenure

• Citizens of Ukraine
• Resident Companies of Ukraine
• Joint-Stock Companies
• Foreigners — NO

Before starting business in Ukraine foreign farmer has to do:

1) to define who is the owner of the farm
2) to make audits, to determine if there are any loans
3) to evaluate what you are really want to buy

• financial audit
• accounting audit
• legal audit