Poroshenko: Reforms can increase cost of land lease fivefold

 “Now the state leases its land plots twice as expensive as peasants. In 2017, we adopted the strategy of rational management of state agricultural land resources. We set that the lease of state agricultural land should be carried out only through open auctions,” President posted on Twitter.

He noted that those standards should be applied to the land owned by the peasants.

“Open auctions with single starting conditions can abolish the domination of major tenants. The reforms may help to increase the cost of the land lease in Ukraine fivefold at least and improve the well-being of our peasants significantly,” the President is convinced.

According to him, Ukraine also has a problem of infrastructure deterioration and creation and renewal of the irrigation systems. Out of more than 2 million hectares of irrigated land, irrigation covers only 600-650 thousand hectares. Poroshenko also highlighted the problem of the absence of irrigation systems, their repair.

He noted that only 7% of the loan portfolio of Ukrainian banks accounted for the agrarian sector, while ¾ of funds, which the agricultural enterprises spend on cultivating the harvest, are their own funds. Petro Poroshenko stressed that it was planned to mitigate those problems, in particular, through the development of more effective mechanisms of crop insurance, development of credit cooperation.

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