The introduction of the new usufruct land right could temporarily reduce revenue for local communities from land currently held under permanent use rights. According to legal experts, once the legislation is adopted, a three-year transition period will begin, during which land users will decide whether to register usufruct rights or purchase the land. During this period, local authorities will be unable to auction these plots or allocate them to new users.
Experts stress that this represents only a temporary loss of potential income, not a permanent transfer of ownership. If a permanent land user declines to register usufruct or chooses another legal option, the land will return to the ownership of the state or the local community. It may then be transferred to a new user through competitive land auctions.
The proposed mechanism is intended to resolve the long-standing legal uncertainty surrounding land granted to farmers under permanent use rights in the 1990s. According to the Ukrainian Agrarian Council of Farmers, the issue affects around 27,000 farms and approximately 500,000 hectares of agricultural land that have remained in an uncertain legal status for years.
Analysts note that once the transition period ends, local communities will regain the ability to manage land that is neither converted into usufruct nor purchased. The overall success of the reform will depend on clear legislation, a balanced approach to the interests of farmers and local governments, and transparent procedures for registering the new land rights.