On November 16, 2016 a long-awaited event for domestic farmers took place: a new method of normative monetary evaluation of agricultural lands was approved by the Cabinet of Ministers of Ukraine. The reason for adopting the new methodology was the need to harmonize the conditions for land assessment with the provisions of the new Law of Ukraine "Of Land Assessment."
The document defines a new system of indicators and rules. In particular, the procedure of calculating the normative monetary assessment of agro-industrial groups of Ukraine's natural and agricultural regions agricultural areas has been established.
As before, the normative monetary assessment depends, first of all, on the land plot’s soil quality in the relevant area. However, if that groups of agricultural land's soils on the plot are not identified, a new standard is applied - capitalized rental income on agricultural land. Indicators of this standard are defined in the annex to the methodology for all soils of natural and agricultural regions of Ukraine.
The new methodology simplifies the conditions for the assessment, but how will the changes be applied in practice, we know only three months after the relevant resolution of the Cabinet of Ministers of Ukraine enters into force.