We have chosen to write our examination essay about Ukraine, we wanted to find out
what kind of possibilities there is to run a farm there, and also find out what kind of
problems that might arise. Ukraine is still heavily influenced by Russia and the legacy
from the former Soviet Union. The agriculture today looks pretty much like it did before
the collapse of the Soviet system. There are large governmental or cooperatively owned
farms. The large farms have to deal with bad cash-liquidity and they often have trouble
getting a hold of seed and artificial manure to their whole acreage. Therefore the harvests
have plummeted after the Soviet Union collapse. The creation and development of
modern farms are today practically laying still. It is only a handful of the agricultural
businesses that today have the knowledge and the resources to develop. This essays main
question is to find out if there might be any profit in buying farmland in Ukraine and to
start a farm business there. We have gathered facts from interviews, reports, periodic
writings and the Internet. By way of introduction are the countries geographical, historic
and economic facts presented. Where also the climate and facts about farming in Ukraine
is brought up. Further on is a description of the production conditions, crop growing
potential and today’s cultivated crops in the country. The production conditions in the
country are among the worlds best. Today’s land legislation in Ukraine is not very
favourable for foreign investors. You are not able to buy soil out right, only if you are a
Ukrainian citizen. The only possibility to farm land there is to take on lease. The labour
in Ukraine is often qualified and well educated, but the wage situation is low. The tax
legislation for businesses in Ukraine is very tricky and bureaucratic. But the tax
legislation for farm-businesses in Ukraine is very favourable. The financing is the hardest
part in starting and running a business in Ukraine. The interest is very high. Some of the
interest is to be returned from the government, but this works very seldomely. The
conclusion that has been drawn is that buying land in Ukraine is, if not impossibl...