Agricultural Farms For Sale In Ukraine

[Igor]

Agricultural companies for sale in Ukraine. Great opportunity for investors. 500-60 000 hectares of highly profitable fertile soil. Cheap labor. Some companies have livestock, agricultural buildings and machinery. Bargain prices because of credit crunch from 160 USD a hectare. Projected profitability from 200 USD a hectare.
 Some farms can be found on our website (it is under reconstruction now).
 Most of farms are in our private database, so please do not hesitate asking. In addition we can find farms, grain elevators, and other agricultural factories in Ukraine up on your request.

We also organize trips on farms for potential investors. Detailed information can be found on our website or you can write your queries on our e-mail. 


FarmOffer.com
Mr. Igor Natalenko
 E-mail: [e-mail]
Tel: [phone]
Website: www.farmoffer.com

[Geoffrey Freeman]

Those are nice looking farms / why can't the locals buy into something like that?

[Igor]

Well, most local people do not have enough money and all bank lending programs has stopped last year. This is why the farms are very cheap these days. But those locals who have money are buying.

[Nick]

Why did all bank lending programs stop? Anything to do with the fact that property rights get into question with Socialist governments? That way the banks have nothing to lien against?

[Igor]

There is nothing to do with property rights. Ukrainian banking system is still in trouble because of World Crisis. It won't last for long, but at the moment local banks do not lend money at sensible interest rates. For example it is possible to borrow money for one year at 25-30% but nobody wants to do it, because it has no sense.
 Some info about farming in Ukraine you can watch on our website:
http://www.farmoffer.com/index.php/en/

[Steve]

Upon viewing some of your ads, can you clarify what you mean by corporate rights? I would own 100% of the business, but I would not actually own any physical real estate, just land leases? I see some ads say for sale 100% and I am assuming this means you are purchasing the actual real estate, not a land lease?

[Igor]

Some farmers sell 50 or 60% of their farm. For sale 100% means that 100% of a farm is for sale.
Buy Ukrainian law you can buy any land in Ukraine except of agricultural land. It means that buying a farm you own commercial land with all the buildings and machinery, also you are getting lease rights on the agricultural land for 5-25 years depends on the farm. When moratorium on agricultural land is canceled, you'll get exclusive right to buy the land that you have according to your lease agreements at the price, stated buy the government. It means that you'll buy land at the price of about $1000 a hectare and you can sell it next day for 5 000-10 000 a hectare. Ukrainian land is one of the best in Europe so I think that the land prices will be much higher.

[Nick]

Exactly what I meant by property rights......it is very hard to have any private development in Socialist countries due to the government having sole ownership and ultimately deciding who does what and where....how do you expect banks to finance a business when the income generating part of the business can not hold a lien...the sheds, house and rest of business is worthless to them....just one of the reasons why Socialist countries will always have a hard time to financially get ahead....unless you work in the government off course... :)

[Igor]

Agricultural land belongs to people, NOT to the government. And you'll lease the land from PEOPLE from local village. They just cannot sell the land by the Ukrainian law. If they could, you'd never had a chance of buying anything here because it would be unbelievably expensive.

 Banks were lending money before the crisis, and nobody wanted to sell any farm here even for 1000$ a hectare. Interest rates were rather high, but farmers, with their old machinery that were loosing 20% of the harvest, managed to get good profits. Property prices went up by 1000% from 2002 to 2007 year. Where else on earth would you get so huge capital growth? And you talking about hard times? The same will be with land, when moratorium is canceled. At the moment Ukrainian parliament is preparing land law background for moratorium cancellation that we expect to happen in 2013 year. Right now prices are rather low again because of crisis, but it's being a year as they grow.

Foreign farmers make huge profits here as they came with money, and do not need to tie up themselves with local 25% loans. Shortage of cheap money is the main problem in Ukraine at the moment. Those who use this downside of Ukraine will have a win strategy. We can help with organizing business in Ukraine, as we have everything (human resources, machinery and equipment, infrastructure, great land) only luck of cheap money.

[Dutch Dirt Farmer]

just reading your ads and you have the price and the land for rent is it a year rent due or all at one time you pay it and good for ten to twenty years? what part also in the Ukraine is it with the farms that are mostly for sale? how is it to move the crop to town to get paid?

[Igor]

When you are buying a farm, you are buying the right to lease the agricultural land for example for 10 years. It means than during 10 years you can use the land and you'll need to pay 7-50 USD a share (one share = from 1.5 to 3 hectares) to the shareholders (local people). After that period you can extend lease agreements with locals for 10-25 years.
It is hard to say in what part of Ukraine farms are mostly for sale, but if you decide to buy some farm, we'll help you to choose the region according to what you are planning to grow and how many land you are looking for.
To get payed you can export grain to Europe or sell it to local traders. There are plenty of elevators around where you can sell you harvest. If needed, we'll be glad to help you with selling your crops to the local market or exporting it to any country.

[Dutch Dirt Farmer]

do you have to pay then ten year rent up front or do you pay year by year? what is a start up of one of these farms that are to get going to buy the cattle and pag's how much do they cost each?

[Nick]

What we call a cash lease in simple terms.....?