New Year – new opportunities. Legislative changes regarding the management of agricultural land

The question of the circulation and using of agricultural land has long been debatable not only among lawyers and people’s deputies, but also among ordinary citizens, since many of them are the owners of such land plots. Also, this topic is rather sensitive to agrarian companies, which rent a lot of sites, including units for the implementation of activities.
Taking into account these factors, as well as numerous cases of non-using of agricultural land and deterioration of their qualities, the parliament has taken a step that can partially solve the problem. On January 1, 2019, the Law Act No. 2498-VIII entered into force, which amends the issues of using and disposal of land plots. In this article we will understand what new legislators have prepared for us
New concepts and new opportunities
First of all, it should be noted that this is the notion of an array of lands. In accordance with the law, an array is an aggregate of agricultural land and land that is required for their maintenance.
The separate article has appeared in the Land Code, which regulates the distribution of agricultural land set in arrays of land.
Commodity production on the lands of a private peasant and farm, located within the array, can be carried out without changing the purpose.
We can exchange not only among themselves but also with the state or the city
Next – more interesting. Land in state and communal ownership can be exchanged to land plots of private property within the limits of an array. The necessary condition for such an exchange is the same value of such sites in accordance with the normative-monetary valuation, and the maximum permissible difference – 10%.
Another positive change is the consolidation of the possibility for owners and users of land plots to exchange between each other within the lease term. Such an exchange is carried out on the basis of the lease (sublease) agreement of the land plot.
“Control pack”
The new law act also guides the concept of the user to a substantial share and protects his rights. An essential part is considered to be 75% of the land array. Owners or users of substantial shares have the right to lease another part of the land of an array if their non-use creates an obstacle to the rational use of a substantial share.
About the owners and users of sites that are forcibly transferred to the lease, the legislator also thought. They have the right to indemnify property damage in full.
Not bypassed both the field roads and forest protection strips. They will be transferred to the tenants or owners of land plots in an array without conducting land trades. In addition, field roads can be used not only for walkway or passage, but also directly for the cultivation of products. As for rainbow forest strips, they can be leased to specialized enterprises, as well as individuals or legal entities. However, in the event of a transfer to the latter, the contract must contain provisions regarding the conditions for the preservation of such bands.
Undivided and undemanded items and their use
Undivided is the one that corresponds to the land management project subject to dividing, but not allocated to the owner. Undemanded share, for which there is no legal document, or which is not allocated in kind. Such land loats can be transferred to the lease of local councils until the day when the right to the site is registered. This condition is indicated in the contract. The owner of such land loats and their heirs gives time for the registration of loats by 2025. If the registration of the rights does not occur, the owner is considered to be refused.
Inventory of arrays
The law act provides an opportunity to conduct inventory of the entire array by initiatives of state authorities or local self-government. During the inventory, unknown areas, areas under rainbow forest strips are also formed, as well as the introduction of information about such areas to the state cadastre.
Will changes affect the land market?
So, the beginning of the year brought positive changes in the agrarian sector. In essence, the innovation of the law – is an adjustment of the legal framework for existing relations. Indeed, in agrobusiness there are cases when several agro companies actually lease an array and divide it among themselves verbally.
In addition, the problem of nonusing a significant portion of shares in the so-called collective ownership may also be partially resolved, despite the continuation of the moratorium. The permission to exchange areas within the array, as well as the exchange of private property on the one hand, and the state or communal on the other, is definitely a positive dynamic, since not one person faced the problem of registration of rights to a land plot and with numerous bureaucratic obstacles. It seems that new norms can be an impetus for the revitalization of land business. Probably, we will be able to improve the situation with the information of the land cadastre, reduce the number of errors and improve the quality of this information.
Taras Yatsyshchuk
junior associate of
corporate law and compliance practice
ALBachynsky and partners]]>

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