Saturday, 8 May 2010

Ukraine versus Brazil

This is an interesting article by Mark Mueller comparing Ukraine and Brazil agriculture and I have to say I generally agree with his observations about Ukraine.

That is apart from removing the moratorium on land sales which most observers on Ukraine agriculture seem to cite as a need for reform and development.

The moratorium prevents the freehold sale of Agricultural land and last time I looked had been extended until 2012.

On the face of it freeing up land sales secures land tenure and allows for investment to be made.

However those wishing to invest in agriculture would have to find sufficient capital to fund the purchase which could be as much as $5000 per hectare. At the moment renting land costs about $40-50 per hectare.

Removing the moratorium would be very bad for the current landowners. A cash lump sum seems like a good idea and undoubtedly some would make great use of it; setting up a business; sending the kids to Uni; fecking off out of the village; whatever. But the vast majority would have a fantastic party and piss it all away.

Then what? No income, no land, no job. Not good for the individual and not good for the village.