Agricultural Land Rental Success: Insights from the "Land Bank" Project
Ukraine has embarked on a new phase of agricultural land rental, generating revenue of 584.9 million UAH (14.2 million USD) since the launch of the "Land Bank" project in October 2024, according to the Ministry of Economy of Ukraine.
A total of 20,521 hectares of land have been leased.
What is the "Land Bank" project?
This initiative enables Ukrainian farmers to lease agricultural plots owned by state agricultural enterprises through online auctions on the "Prozorro.Sales" platform.
On average, seven participants compete for each lot, which increases the sublease value eightfold, noted Ukraine's First Deputy Prime Minister Yulia Svyrydenko.
"This represents a new standard in managing state assets, where land serves the economy and opens opportunities for agricultural businesses across the country," Svyrydenko emphasized.
69.1% of auction winners within the "Land Bank" are small and medium-sized agricultural businesses. Among the sub-lessees are those who have signed over 20 contracts and are actively cultivating these lands, according to Yaroslav Yaroslavskyi, CEO of the State Land Bank.
Results of the "Land Bank" project
Since October 1, 2024, there have been 506 online auctions for the sublease of state agricultural lands on the "Prozorro.Sales" platform, covering a total area of 35,235 hectares across 17 regions of Ukraine.
As a result, contracts were signed for land areas totaling 20,521 hectares from 271 auctions.
The highest competition among participants was observed in Vinnytsia region, with an average of 22 competitors per lot. Poltava and Cherkasy regions followed, with an average of 14 participants per lot.
Among the contracts signed, the highest average price per hectare was in Ivano-Frankivsk region at 47,500 UAH, while the lowest was in Zakarpattia region at 3,496 UAH per hectare.
"In just the first six months of operation, the "Land Bank" became the leader in attracting funds among all organizers of land auctions on the "Prozorro.Sales" platform since autumn 2021," stated Serhiy But, CEO of "Prozorro.Sales".
As of April 3, there are 394 land plots available for sublease in the "Prozorro.Sales" system, encompassing a total area of nearly 12,000 hectares.
Among the available lots is the largest object of the first pool of the "Land Bank" — a plot of 3,969 hectares in Kirovohrad region with a starting price of 13.7 million UAH.
The smallest plot, measuring 0.03 hectares, is located in Zakarpattia region.
