The restriction of land use foreseen in a draft law on the land market would result in the disorganization in the use of million of hectares of farmland and the shadow leasing of land, according to the Ukrainian Agrarian Confederation (UAC).
"Restrictions on land use, which today are being forced by lawmakers on the public, are a way to prevent effective crop planting, [destroying] the sugar sector and industrial milk production. This is a blow to the competitiveness of the whole agrarian sector in Ukraine," the UAC press service said, citing UAC director general, Serhiy Stoyanov.
He said that first the restrictions would affect the sugar sector, where land accumulation near sugar refineries of 30,000-40,000 hectares is linked to logistics and technological specifics of the sector.
Stoyanov also said that destructive consequences of the requirement would be seen in the industrial milk production.
"The optimal dairy complex [with 1,200 cows] requires 10,000 hectares of farmland near the complex – as a rule in the same district," he said.
He said that the requirement would also spoil the capitalization of Ukrainian agrarian companies.
The Ukrainian parliament passed at first reading on Dec. 9, 2011 a bill on the land market.
The document restricts the leasing of farmland on the territory of one district and one region.
An individual or a company cannot lease over 6,000 hectares of land in one district and can lease no more than 5% of the farmland in one region.
The draft also introduces a requirement under which one individual can buy no more than 100 hectares of land.
