Pricing of the irrigated land in Ukraine
Irrigation is one of the critical issues in increasing productivity and competitiveness in the Ukrainian agricultural sector. More in the Land Market review 1Q2024
Irrigation is one of the critical issues in increasing productivity and competitiveness in the Ukrainian agricultural sector. The full-scale Russian aggression against Ukraine caused significant damage to Ukraine’s irrigation. After the full-scale invasion started, a major part of irrigated land was occupied. As a result of the explosion of the Kakhovka Dam, the water supply to 306,500 hectares of irrigated land ceased. Only one of the four irrigation systems operating in the South of Ukraine (the network of irrigation systems of the Odesa region) is functioning.
According to the results of the regression analysis, plots located in village councils with irrigation networks are 12.7% more expensive than others. At the same time, it should not be concluded that the difference between the price of a plot with irrigation and a plot without access to irrigation networks is only 12.7% because, in our analysis, villages with irrigation networks include both plots with access to networks and without access to networks. If a similar study were conducted to identify areas with access to irrigation networks, the difference between such areas and areas without such access would be significantly higher.
read Land Market Review Ukraine Q1’2024 prepared by the Center for Food and Land Use Research at Kyiv School of Economics (KSE Agrocenter) with the support of the USAID AGRO Program
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