Farmers cannot buy land for permanent use — VKF

10/04/2023 14:45

The All-Ukrainian Congress of Farmers appealed to the highest leadership of the state and representatives of the European Union in the Verkhovna Rada on agrarian issues regarding the restriction of the rights of farmers to transfer land for use until full settlement under the purchase and sale agreement.

As noted, the NGO "All-Ukrainian Congress of Farmers" has recently been systematically receiving appeals from farms with a request to help solve a difficult situation related to the ban on using land plots that they purchased for payments for 10 years.

Thus, together with the opening of the land market, farmers were given the opportunity to purchase plots of land that were in their permanent use. According to Clause 6-1 of the Transitional Provisions of the Land Code of Ukraine, ownership was supposed to pass to the buyer after the first payment.

"But according to the new edition of Clause 6-1 of Chapter X of the Transitional Provisions of the Land Code of Ukraine, farmers cannot transfer the purchased plots of land for use until the loan is fully repaid, at most, the inflation index has begun to accrue," explained the Congress of Farmers.

Read also: Owners of shares may be deprived of land in the border zone with Russia and Belarus

According to the information, innovations in the land legislation change the established legal order and economy of the enterprise, nullifying the very purpose of buying the land plot, as they do not allow registration of the right to use the land plot, which is currently required by the tax office for accounting of the land plot as part of the asset of the farm.

"Given the fact that land is the only source of income for farmers, by restricting their rights to access it, the state effectively leaves them without money. And the inflationary accrual proposed by the new edition can lead to the bankruptcy of the enterprise and the loss of both financial and land resources," VKF explained.

These changes caused indignation among representatives of farms, because currently farms are actually on the verge of survival due to unprofitable prices for grain, high prices for seeds, fuel materials, fertilizers.

VKF believes that the existing legislative gaps will lead to the fact that farms may cease to exist altogether as a type of organizational and legal form of management on the territory of Ukraine, which will endanger the existence of most villages, the prospects for the development of rural areas and the food security of the country in general.

The All-Ukrainian Congress of Farmers appealed to the highest leadership of the state and representatives of the European Union in the Verkhovna Rada on agrarian issues regarding the restriction of the rights of farmers to transfer land for use until full settlement under the purchase and sale agreement.
As noted, the NGO "All-Ukrainian Congress of Farmers" has recently been systematically receiving appeals from farms with a request to help solve a difficult situation related to the ban on using land plots that they purchased for payments for 10 years.
Thus, together with the opening of the land market, farmers were given the opportunity to purchase plots of land that were in their permanent use. According to Clause 6-1 of the Transitional Provisions of the Land Code of Ukraine, ownership was supposed to pass to the buyer after the first payment.
"But according to the new edition of Clause 6-1 of Chapter X of the Transitional Provisions of the Land Code of Ukraine, farmers cannot transfer the purchased plots of land for use until the loan is fully repaid, at most, the inflation index has begun to accrue," explained the Congress of Farmers.
Read also: Owners of shares may be deprived of land in the border zone with Russia and Belarus
According to the information, innovations in the land legislation change the established legal order and economy of the enterprise, nullifying the very purpose of buying the land plot, as they do not allow registration of the right to use the land plot, which is currently required by the tax office for accounting of the land plot as part of the asset of the farm.
"Given the fact that land is the only source of income for farmers, by restricting their rights to access it, the state effectively leaves them without money. And the inflationary accrual proposed by the new edition can lead to the bankruptcy of the enterprise and the loss of both financial and land resources," VKF explained.
These changes caused indignation among representatives of farms, because currently farms are actually on the verge of survival due to unprofitable prices for grain, high prices for seeds, fuel materials, fertilizers.
VKF believes that the existing legislative gaps will lead to the fact that farms may cease to exist altogether as a type of organizational and legal form of management on the territory of Ukraine, which will endanger the existence of most villages, the prospects for the development of rural areas and the food security of the country in general.
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