There has never been a better time to look at green Agricultural Investments
After the collapse of the former Soviet Union all state owned and collective farms were dismantled, and the land was divided up into land shares and the redistributed to each of the famers, newly formed agricultural associations then leased back most of the land that had been distributed out to the farmers. Initially the agricultural sector fell into decline as state subsidies dried up which had propped it during the Soviet era. Production of wheat fell by as much as 50% and fertilizer by as much as 85%. As well as an aging fleet of machinery and lack of funds for any investment the stagnation set in. Today still obtaining credit or investment is still a problem for many farms in the Ukraine.
Agricultural Land in Ukraine
The climate of Ukraine is very similar to that of the American Midwest, perhaps a little dryer and cooler in the summer and wetter and colder in the winter. With annual rainfall of around 600mm which includes 340mm during the growing season between April –October most of the Ukraine is able to grow crops all year round.
More than 60% of Ukraine's land mass is designated as agricultural land, wheat, barley
and corn being the main crops grown, with sunflower and sugar beats grown as industrial crops. Though since independence in 1991 until 2000 production dwindled significantly across the Ukrainian agricultural sector. What was needed was some significant investment, traditionally it has been very difficult for farms to obtain any credit where they can invest in improved machinery and storage facilities. For many farms the best option is for a farm to attract an outside investor who can provide market expertise, and capital. The potential “down side” of investor arrangements, from the farmer's perspective, is a lose control of some of the farm operations. Often the investment company insists on maintaining control over production, farm, equipment, and land. Farms are also encouraged to enter into extended leases of five to ten years, sometimes longer, this gives long term security for the investor and also guarantees secure funding for the farm.Growth Green Agriculture Plc is a UK based agricultural investments company specialising in emerging markets offering unique opportunities to invest in Ghana. GGAgriculture acts as consultant on green and socially responsible investments to the private and institutional investor community in Europe. http://ggagriculture.com/
