14 Nov EASYBUSINESS’ RESULTS IN THE LAND REFORM PROMOTION
Since 2015, EasyBusiness has been actively working to make the land market in Ukraine become a reality. During this time, we have issued several comprehensive analytical reports, organized a large number of discussions and trainings, managed to consolidate the efforts of Ukrainian landowners in fighting for their property rights, reached a positive decision of the European Court of Human Rights, etc. As a result, the opening of the land market today has come closer than ever.
In November, EasyBusiness finished implementing the project “Advocacy of the land reform in Ukraine for the establishment of the free farmland market through changing of public perception and an increase in political will”. The project was funded by the MATRA program launched by the Dutch Ministry of Foreign Affairs.
Within the project, EasyBusiness experts:
- Conducted new research with a forecast of the price of Ukrainian land after opening the farmland market, calculation of the economic effect of the reform, list of next steps for the government and recommendations on how agribusiness should develop after lifting the moratorium.
- Conducted a broad communication campaign to share the results of our research with as many people as possible. Moreover, we launched a series of publications about what the land market would bring for all players, from landowners to the state at all.
- Conducted study tours to two European countries: Lithuania and the Netherlands, where we explored how the land market works in other countries, talking with local landowners, businesses and government agencies. The results of the study tours allowed us to create a short documentary film “Land” (“Земля”).
- Organized a forum “LIFE AFTER: Key Aspects of Launching the Land Market in Ukraine”. Within the forum, representatives of government, business, international institutions, and the expert community discussed how to open the land market and what to do afterward.
- Registered an Association of Free Farmland Owners aimed to protect the rights of landowners and to provide them with information and advisory support on the efficient use of their assets. We also updated farmland.in.ua online platform, adapting it to the Association’s activities, and adding new features such as a calculator of cost-effectiveness for reform.
Analytical Report “LIFE AFTER: Key Aspects of Launching the Land Market in Ukraine”
Within the new research, the EasyBusiness analytical team focused on forecasting the future value of Ukrainian agricultural land. As a result, we have managed to develop our own methodology for calculating a fair price for land, analyzed how this price would be affected by various restrictions, and predicted how the price would be growing over time. In addition to the price itself, EasyBusiness experts also calculated the future economic effect of the various market models and determined what the government should focus on in order to maximize the positive effect of the reform.
Since the lifting of the moratorium will have a serious impact on Ukrainian businesses, we devoted the second part of our research to new models of functioning of agricultural enterprises. The EasyBusiness team identified key areas for business development, such as entering export markets, processing, moving to high-margin crops, investing in new technologies, clustering, and managing a land bank.
The analytical report in English you can find below (click on the image).
Over the last year, EasyBusiness experts participated in 15+ TV and radio broadcasts to discuss the benefits of a free land market in the country. The results of our analytics have been mentioned more than 50 times by online media.
In addition, EasyBusiness launched a series of publications to explain how the moratorium abolishment will affect Ukrainian landowners, agribusiness and the state at all. You can read the articles by clicking links below (Articles in Ukrainian).
- В очікуванні ринку. Кому належить українська земля?
- Ринок землі: чи потрібно захищати пайовиків від міфічних іноземців?
- Життя після земельного мораторію: загрози і можливості для бізнесу. Чого більше?
- Як Україні заробити $85 млрд і при чому тут ринок землі
To better understand how the land market works in other countries, EasyBusiness experts have made two study trips: a country with a mature land market (the Netherlands) and a country where the land market is at the developing stage (Lithuania). During the study tours, EasyBusiness experts talked to local farmers, government officials, investors, representatives of cadastral services and research institutions, etc.
The study tours enabled us to film a short documentary showing how the situation with the land market differs in the three countries – Ukraine, Lithuania and the Netherlands. You can watch the video on EasyBusiness’ YouTube channel.
Forum “LIFE AFTER: Key Aspects of Launching the Land Market in Ukraine”
On October 30, EasyBusiness organized the forum to bring together key stakeholders experts and discuss how the land market should be launched and what to do afterward.
The forum consisted of two panels. Within the first panel, the model of the future land market and additional governmental measures were discussed. The following speakers participated in the panel: Advisor to the Prime Minister of Ukraine on Economic Issues Oleksiy Mushak, MP from “Sluga Narodu” party Maryan Zablotskyy, MP from “Golos” party Yulia Klymenko, Expert of the Council of Europe Anatolii Miroshnychenko and Project Manager of EasyBusiness Dmytro Lyvch.
Within the second panel, business representatives discussed how conditions of doing agribusiness would change after opening the market and what companies need to do to stay competitive. The panel was attended by the Executive Director of Agro-Region Kateryna Rybachenko, President of the Ukrainian Agribusiness Club Alex Lissitsa, Chairman of the Allseeds Supervisory Board, Partner of Diligent Capital Partners Dan Pasko, Vice-President of SigmaBleyzer Foundation Vladyslava Magaletska and Farmer, Director of Sontsetsvit Private Enterprise Andrii Voitko.
Within both discussions, the speakers concluded that the opening of the land market should happen as soon as possible and that the liberal model of reform would bring the maximum effect to the economy. In addition, the government should address a number of other issues, such as filling the land cadastre, privatizing state-owned enterprises, decentralizing the management of state-owned land, supporting farmers and small producers, etc.
Launching the Association of Free Farmland Owners
Despite the fact that 7 million Ukrainian landowners today are the largest group of land reform stakeholders, their interests have not been widely represented for many years. The Association of Free Farmland Owners was created to consolidate landowners in protecting their property rights and pursuing their interests.
Within its activities, the Association will be sharing the information about new opportunities and threats that arise after the opening of the market, as well as providing individual advice on economic and legal issues for landowners.
Along with the creation of the Association, the farmland.in.ua portal was also updated. Now you can learn there about the services provided by the Association, the latest industry news and analytical materials, etc. In addition, you have the opportunity to take an online test, “What Kind of Land Market You Are”, to find out which model of reform suits your views the best, and to calculate how much money you lose because of inefficient land leasing without farmland market.
The project was funded by the MATRA program launched by the Dutch Ministry of Foreign Affairs. Financial and informational support was also provided by Atlas Network. Also, the partners of the project included international consultancy CIVITTA, The Reanimation Package of Reforms, Liga.net and The Union of Ukrainian Entrepreneurs (SUP).
Special thanks to the entire EasyBusiness team involved in the project: Project Manager and Head of Analytics Dmytro Lyvch, Vice-Chairman Kirill Kryvolap, Senior Economic Analyst Kateryna Shapovalenko, Junior Economic Analysts Yaroslav Zhydhyk, Vadym Fedchyshyn, and Ivan Khomenko, Legal Associate Maryna Boichenko and Intern Economic Analyst Sergii Olinyk.