Agricultural land turnover in Ukraine: state, features and problems


Keywords: agricultural land turnover, average value, purchase and sale, parcelling, transactions.

Abstract

Purpose. The purpose of the article is to determine the state of agricultural land turnover in Ukraine after the lifting of the moratorium, its features and institutional problems that arose in the process of market turnover of land plots of owners of land shares.

Methodology / approach. In the process of research, the authors used the following methods based on the dialectical method of cognition: abstract-logical – in the systematization of scientific publications devoted to the issue of the turnover of agricultural land, its state, features and problems that arose in the process of opening the market for the turnover of land plots of owners of land shares; analysis, synthesis, comparison – when analyzing and comparing the number of transactions with land plots over a certain period of time (sale of land plots by legal entities and citizens, inheritance, etc.), prices and areas of transactions; method of generalization – when forming theoretical generalizations and conclusions. In the process of work, official data of the State Service of Ukraine on Geodesy, Cartography and Cadastre were used, namely: to display real quantitative and value (price) indicators of the state of agricultural land turnover in Ukraine.

Results. According to the results of the study of the state, features and problems of the agricultural land turnover in Ukraine, it was established that such indicators as the number of transactions with land plots for a certain period of time, the price and the area of transactions are usually analyzed. It is established that there is no correlation between the average price of 1 hectare of land and the number of land plots and their size, which is due to the fact that the plots were sold at a price that was almost equivalent to the normative monetary value. The given rating of the activity of the agricultural land turnover shows that the data in the regional section are quite variegated. It is established that the prices for land plots do not fully reflect the ratio of supply and demand, and the implementation of transactions with land plots in the process of turnover creates an even greater parcelization of land use. In addition, on the example of the analysis of the transactions of the Uzyn Territorial Community of the Kyiv oblast, it was confirmed that the sale price of agricultural plots allocated in kind (on the spot) to the owners of land shares is almost equal to their normative monetary value. The analysis of the areas of land plots acquired by individuals and legal entities showed non-compliance with legal regulations. In particular, for individuals, the area of purchased plots exceeds the norm by 15–95 times and for legal entities – by 10–50 times.

Originality / scientific novelty. The originality of the research lies in the fact that the above analysis of the activity rating of agricultural land turnover made it possible to ascertain the fact that the prices of land plots are not determined by the ratio of supply and demand, but are artificially formed at the level of the normative monetary valuation of lands. It is established that carrying out transactions with land plots in the process of turnover does not contribute to the rationalization of land use by agricultural commodity producers, but creates an even greater parcelization of land use. The study of interdependence confirmed the absence of a relationship between the average price of 1 ha and the number of sold land plots (r = 0.027) and their size (r = -0.407).

Practical value / implications. The main results of the study can be used as an information foundation for solving the basic institutional problems of the agricultural land turnover in Ukraine after the six-month moratorium is lifted; to take appropriate measures to improve the gaps in the legislation in the context of the purchase of land plots in the “same hands” and to strengthen the requirements for experts to justify the market value of land plots in accordance with the current methodology.

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References

Lazíková, J., Rumanovská, Ľ., Takáč, I., Prus, P., & Fehér, A. (2021). Regional differences of agricultural land market in Slovakia: a challenge for sustainable agriculture. Agriculture, 11(4), 353. https://doi.org/10.3390/agriculture11040353.

Zhllima, E., Rama, K., & Imami, D. (2021). Agriculture land markets in transition – the inherited challenge of the post-communist land reform in Albania. Land Use Policy, 107, 105509. https://doi.org/10.1016/j.landusepol.2021.105509.

Loughrey, J., Donnellan, T., & Hanrahan, K. (2020). The agricultural land market in the EU and the case for better data provision. EuroChoices, 19(1), 41–47. https://doi.org/10.1111/1746-692X.12212.

Britos, B., Hernandez, M. A., Robles, M., & Trupkin, D. R. (2022). Land market distortions and aggregate agricultural productivity: evidence from Guatemala. Journal of Development Economics, 155, 102787. https://doi.org/10.1016/j.jdeveco.2021.102787.

Wang, Y., Li, X., Xin, L., Tan, M., & Jiang, M. (2018). Spatiotemporal changes in Chinese land circulation between 2003 and 2013. Journal of Geographical Sciences, 28(6), 707–724. https://doi.org/10.1007/s11442-018-1500-2.

Piet, L., Melot, R., & Diop, S. (2021). What drives competition on the farmland market? A case study in Brittany (France). European Review of Agricultural Economics, 48(1), 60–96. https://doi.org/10.1093/erae/jbaa019.

Dankevych, Y., Dankevych, V., & Chaikin, O. (2017). Ukraine agricultural land market formation preconditions. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(1), 259–271. https://doi.org/10.11118/actaun201765010259.

Alola, A. A., & Uzuner, G. (2020). The housing market and agricultural land dynamics: appraising with economic policy uncertainty index. International Journal of Finance & Economics, 25(2), 274–285. https://doi.org/10.1002/ijfe.1751.

Chen, C., Restuccia, D., & Santaeulàlia-Llopis, R. (2021). The effects of land markets on resource allocation and agricultural productivity. Review of Economic Dynamics, 45, 41–54. https://doi.org/10.1016/j.red.2021.04.006.

Ciaian, P., Baldoni, E., Kancs, D. A., & Drabik, D. (2021). The capitalization of agricultural subsidies into land prices. Annual Review of Resource Economics, 13, 17–38. https://doi.org/10.1146/annurev-resource-102020-100625.

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Published
2022-09-20
How to Cite
Tretiak, A., Moskalenko, A., Tretiak, V., Moskalenko, V., & Tretiak, N. (2022). Agricultural land turnover in Ukraine: state, features and problems. Agricultural and Resource Economics: International Scientific E-Journal, 8(3), 244–263. https://doi.org/10.51599/are.2022.08.03.12
Section
Articles

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