The Agricultural Investment Fund expects that leasing state land will bring ₴1B this year.

The Agrarian Investment Fund state enterprise manages 104,000 hectares of state agricultural land.

According to the foundation’s chairman, Yaroslav Yaroslavskyi, the fund’s task is to generate budget revenue from the lease and sublease of state agricultural land. Currently, the State Property Fund manages 386,000 hectares of agricultural land, of which 98,000 are occupied.

“The state is still recording losses from this asset, although the fields are sown all the time and are creating income for someone,” Yaroslavskyi said.

To remedy this, the Agricultural Investment Fund will launch a mechanism for leasing state land, which will bring the state more than ₴1B this year. The first step is eliminating permanent land use rights for 59 state institutions. The second is the foundation, which is the tenant, registering the land. Subsequently, the fund will become the administrator of state land, the Land Bank, which will sublease agricultural land.

Online auctions are expected to increase rental rates by 200%. It is planned to auction 2,052 plots in 20 regions.