Agrion leases land through sealed bids auctionsIt is up to the farmers to determine the rent levels on a competitive basis
Agrion Invest, leader in agricultural land management, is once again organizing sealed bid auctions for renting and leasing out land from its portfolio. The company is the first in Bulgaria to introduce the innovative and fair method for determining the rental levels.
Agrion's experts have designed the procedure to ensure fair and transparent conditions for all participants in the auctions. The winning bidder is the participant who had offered the most attractive conditions for renting land from Agrion.
Thus, in practice, the competition between farmers and their desire to rent good plots will determine the rental levels, rather than the company solely imposing them through direct negotiation, which is the common practice in the sector. Applications for participation in the auctions are accepted in the offices of the company all over the country. The company has also envisaged the option to send the bidding documents by courier.
Auctions allow anyone who wants to engage in agriculture to get involved, even if they have no experience in farming. This is an exceptional opportunity for young farmers and people outside the agricultural sector who do not have the financial capacity or desire to buy their own land.
Auctioning enables all market participants to rent quality land and be more competitive. This is a chance for small and medium tenants to overcome encapsulation between tenants in certain regions. The expectation is that, through the auctions, beginner farmers and smaller tenants will be able to shake large players' positions in some of the most attractive land.
With each passing year, bidders are becoming more and more involved, as they have now proof that the fixing rental levels by auction is the most honest and transparent way on the market. The interest in the auctions is enormous and we are pleased that more and more farmers are choosing Agrion as a partner.
A sociological survey of tenants' attitudes shows that more than 50% of respondents indicate that Agrión is their preferred service provider. The agricultural company is by far the most recognizable brand and enjoys the highest trust among land tenants. Agrion is the only brand that manages to generate a significant share of spontaneous and aidedbrand recognition. A total of over 60% of the respondents in the survey had visited an Agrion’s office through the years.