Farmers Won’t Survive without Subsidies Once Land Market Is Launched - Oleg Bakhmatyuk
After the launch of the land market, small farmers will find it very hard to compete with large corporations
This opinion was expressed by Oleg Bakhmatyuk, owner of Ukrlandfarming, in an interview with Ukrainian Week.
"The land market in the world is very unique: it is owned by large funds that have a yield of 2-3% per annum, and they are not interested in high income, rather they are interested in security of investment. More than 70% of the world's agricultural output is produced on leased land. Let's say I lease land, build a factory, buy my own machinery, create infrastructure and hire people — and with the rent I can become competitive in this environment. That is why the land [ownership] market and the land lease market are separated in the world. In Ukraine, at least initially, they will be mixed, because the purchase price of land will be low," Oleg Bakhmatyuk said.
However, according to him, it is unlikely that farming will make it — it cannot exist without subsidies, support from the state and serious financial injections.
But at least it's good that this market is starting," he added.
He also spoke about whether Ukraine will ever see farmers become a social stratum.