Official website of The Cabinet of Ministers of Ukraine presented Resolution ‘On Approval of Methodology for Regulatory Monetary Value of Agricultural Lands’ dated 11 November 2016.

Association ‘Ukrainian Agribusiness Club’ within the last three years has been actively participating in the working group to discuss this methodology. An aim of the methodology drawing-up was to ensure its justified calculation and reasonable implementation for landowners and land users. It is considered in the UCAB that the new methodology substantially simplifies regulatory monetary value of land and adjusts price of the land in different regions depending on the type of soil.

‘New Methodology is going to provide more balanced regulatory monetary value of agricultural lands in the regions of Ukraine meeting modern economic realities and creating more adoptive competitive environment’, press service of the UCAB informed.

Attachment No.1 to Methodology stipulates regulatory monetary value of each natural and agricultural zone greatly simplifying re-assessment of the land. The monetary value of natural and agricultural zones takes into consideration division of the areas into zones according to grouping of similar soil types, current price and the amount of rental income.

In order to complete establishing of regulatory monetary value as well as provide a possibility of determining regulatory monetary value for each land plot separately, the state authorities should draw up scales of regulatory monetary value for agro-industrial soils groups of natural and agricultural zones in terms of soil assessment (bonitet) to be carried out every 7 years. If indicators of soil bonitet are unavailable, the relevant assessment should be conducted. The use of bonitet score when determining regulatory monetary value means that the price of land will be higher wherein there is a better quality of soils.

In addition, clause 7 of Methodology states that if the agro-industrial soil groups of agricultural lands are not defined on agriculturally used plot, regulatory monetary value of the relevant agricultural land of the natural and agricultural zone is to be applied. In other words, if the type of soil is unknown and/or soil assessment is not carried out, it is possible to use regulatory monetary value data about required natural agricultural zone from the Attachment to Methodology.