The Cabinet of Ministers confirmed yesterday that the minimum rent rate on agricultural land would increase from 1.5% to 3%. Anna Dudchenko: The rent rate is calculated as a percentage of the cadastre value of land, which stands on average at USD 2,000 per ha. So, the increase of the rent rate from 1.5% to 3% means an increase in real values from USD 30 per ha per annum to USD 60, still among the lowest in Europe. Currently, the land lease payments of public agricultural companies vary from USD 35/ha to USD 63/ha.
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Company Sintal Mriya MCB Agricole Land West Landkom
Ticker SNPS GF MAYA GR 4GW1 GR 4K1A GR LKI LN
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Current land under lease, ths ha 90 140 100 184 120
Cultivated area in 2008, ths ha 65 85 62 52 14
Cultivated/leased land, % 72% 60% 62% 28% 11%
Average land rent, USD per ha 37 63 40 35 n/a
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Source: Company data