Measured on a per capita basis, few countries have as much agricultural land of such quality as Ukraine, though almost half of the total area is still owned by the state.

The growing number of Ukrainians who now own titled plots of land faces policy makers with the questions of what is farm land worth in Ukraine, what rights and responsibilities do owners of farm land have and can the land be sold.

A functioning land market is vital as it ensures that land can move to more efficient operators and can fulfil its role as a source of revenue for pensioners and others in rural areas who may not have alternative sources of income.

In Western countries the fundamentals of farmland price determination are an essential part of the education of students of agricultural economics. As there was no land market in Ukraine for many decades prior to independence it is no surprise that these fundamentals are not widely understood.

This paper outlines how land markets function and how farmland values are determined in market economies. It describes the links between agricultural policy and land prices, discusses government policy with respect to farmland in Ukraine and ends with a series of recommendations.

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Source:Institute for Economic Research and Policy Consulting – http://www.ier.kiev.ua