State-owned land sublease auctions: how bidding in Kirovohrad and Vinnytsia regions brought in UAH 15.4 million in a week

Over the past week, eight auctions for the sublease of state-owned agricultural lands were successfully held in the *Prozorro.Sales* system. The total area of ​​the plots put up for auction amounted to 441.7 hectares, located in Kirovohrad and Vinnytsia regions.

According to the press service of the Land Bank, these auctions allowed attracting UAH 15.4 million to the budget. Taking into account the value-added tax, the potential economic effect is estimated at UAH 18.5 million.

The activity of the bidders was impressive - 58 applicants joined the competition, which averaged 8 participants per land plot. The main players at the auctions were local farmers and agricultural enterprises interested in expanding their land resources for agricultural production.

The average cost of sublease per hectare of land reached UAH 34,936, which was the result of a significant increase in initial prices. In general, during the auctions, prices for plots increased by an average of 9.3 times, which demonstrates high competitiveness and demand for state-owned land.

The largest lot of the week was a land plot with an area of ​​​​124 hectares in Vinnytsia Oblast. Nine participants competed for the right to sublease it, and the initial price increased 10 times - to UAH 4.7 million in annual rent. As a result, the cost of one hectare of this plot reached UAH 38,217, which was a record among all auctions held.

The results of these auctions demonstrate the effectiveness of using a competitive approach to state-owned land management. Such auctions not only increase the market value of state assets, but also contribute to the responsible use of land resources by farmers. Thanks to open bidding in the *Prozorro.Sales* system, the budget receives additional revenues, and farmers gain access to quality land on transparent terms.