Ukraine is experiencing a record increase in the cost of renting agricultural land. According to the CEO of the ‘Land Bank’, Yaroslav Yaroslavskyi, since the beginning of the year, the average price for subleasing one hectare of land has reached 72,200 UAH, which is 36% higher compared to last year. In 2024, this figure was 53,000 UAH per hectare.
This is reported by Finway
Regional Differences in Rental Prices
The highest average prices for land subleasing are recorded in the western regions. In particular, in Lviv Oblast, the rental price for one hectare has reached 103,000 UAH, in Ivano-Frankivsk Oblast — 102,000 UAH, and in Chernivtsi Oblast — 101,000 UAH. Meanwhile, in the southeastern part of the country, prices traditionally remain lower: in Kherson Oblast — 41,000 UAH, in Zaporizhzhia Oblast — 45,000 UAH, and in Mykolaiv Oblast — 48,000 UAH per hectare.
Reasons for the Increase in Land Market Prices
The key factor influencing the price increase has been the launch of the ‘Land Bank’. This institution has activated the market for subleasing state lands, leading to increased demand and reflecting this in the prices. According to Yaroslav Yaroslavskyi, 74,000 hectares have already been transferred for subleasing, and the private market is showing increased activity.
“Already 74,000 hectares have been transferred for subleasing, and the activity in the private market has increased as a result, which is reflected in the prices”
The rise in land rental prices significantly impacts the agricultural sector, changing approaches to the use of land resources in various regions of Ukraine.