Despite the gradual increase of the land lease term, in Ukraine every second land share is rented for short-term period, declared the Ukrainian Agrarian Association on April 15, 2014.
According to the experts, the Government is to introduce the minimum term on the agricultural land lease, allowing to protect lands from exhaustion and increase the investment attractiveness of the Ukrainian agricultural sector.
At the same time, the short-term lease does not promote the leaseholders to attend the soil fertility and causes the exhaustion and drying of lands. Over 60% of the lease agreements are still being concluded in kind – they are to the account of grain, fuel, service provision, the prices of which are usually set up by leaseholders.
The necessity of Ukraine to introduce the minimum term on the agricultural land lease is confirmed by the world experience. In many countries of the European Union (Austria, Belgium, France, Italy, Portugal, Netherlands and others) it is set up at the legislatively regulated. Thus, in Europe land owners and leaseholders can realize long-term planning, maintain the crop rotation, attract the credits on favorable conditions.