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Legal regulation of economic relations in the agricultural sector

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Sakharuk Anatolii
Sakharuk Anatolii
Lawyer
Ukraine / Kyiv

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Publication date: 08.06.2024

Legal regulation of economic relations in the agricultural sector

 

Introduction

 

The agricultural sector is one of the key sectors of Ukraine's economy, contributing a significant portion of GDP and being the main source of exports. The legal regulation of economic relations in this sector is of great importance for ensuring the stable development of agribusiness, attracting investment and ensuring the country's food security. In this article, we will analyze the main aspects of legal regulation of the agricultural sector in Ukraine, current problems and prospects for improving the legislation.

 

Legal framework

 

The Land Code of Ukraine:

  • The main legislative act that regulates legal relations in the field of land use, land lease, transfer of land plots into ownership and other issues related to the use of land resources.

 

The Law of Ukraine "On Farming":

  • This law defines the legal status of farms, the procedure for their establishment, operation and liquidation, as well as the rights and obligations of farmers.

 

The Law of Ukraine "On State Support of Agriculture of Ukraine":

  • The law regulates the provision of state support to agricultural producers, including subsidies, loans, risk insurance and other forms of support.

 

The Law of Ukraine "On Agricultural Cooperation":

  • Defines the legal basis for the establishment and operation of agricultural cooperatives, their rights and obligations, as well as the procedure for interaction with other business entities.

 

Land relations

 

Land lease:

  • Lease of agricultural land is one of the main forms of land use in the agricultural sector. An important feature is the need to comply with the requirements for entering into and registering lease agreements, as well as ensuring the rights of tenants and landlords.

 

Land auctions:

  • Holding land auctions for the sale or lease of state-owned and municipally owned land plots promotes transparency and efficient use of land resources.

 

Land market:

  • In 2021, Ukraine introduced a land market that allows the purchase and sale of agricultural land. This innovation has a significant impact on the agricultural sector, opening up new opportunities for investment and farm development.

 

State support for the agricultural sector

 

Financial support:

  • Government support includes subsidies, grants, soft loans and other financial instruments to stimulate agricultural production.

 

Agricultural risk insurance:

  • The legislation provides for the possibility of agricultural risk insurance, which allows farmers to protect their farms from unpredictable natural disasters and other risks.

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Innovations and technologies:

  • The state supports the introduction of innovations and the latest technologies in the agricultural sector, which helps to increase the productivity and competitiveness of Ukrainian farmers.

 

Problems and challenges

 

Corruption and bureaucracy:

  • Despite efforts to improve legislation, the problem of corruption and bureaucratic obstacles remains relevant, making it difficult to do agribusiness.

 

Protection of land users' rights:

  • Illegal land grabs, unfair competition and other violations of land users' rights require more effective legal protection.
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