Uman NUH | today: 08/12/2021

Development of land relations and mortgage lending

Author(s) Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Kolotukha S.M., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bechko V.P., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Category Economics
year 2018 issue Issue № 92. Part 2
pages 32-43 index UDK 631.893:631.874.2
Abstract Ukraine is one of the most affluent countries in the world, however, at all stages of market reforms in the country, the land issue is the subject of constant controversy and political struggle. Therefore, the issue of market circulation of land in modern conditions is of particular relevance and economic importance. The conducted research made it possible to establish that Ukraine has a significant land and resource potential. In terms of the share of agricultural land in the total area, it significantly exceeds the leading countries of Western Europe. On January 1, 2016 (according to the data of State Geocadaster), Ukraine has 42,7 million hectares of agricultural land, including 41,5 hectares of agricultural land, 7,8 million hectares of forested land, 2,5 million hectares under construction land. Since 1990, the area of agricultural land has decreased by 522,4 thousand hectares (1,2 %). This is explained by the allocation of land to enterprises, institutions and organizations for non-agricultural needs, the withdrawal of land for the creation of protective forest plantations, transfer to non-agricultural land, intra-farm construction, and etc. It was found out that the balance of humus in the soil of Ukraine during the last 10 years is acutely deficient. The aggravation of the ecological situation in Ukraine was also caused by excessive agricultural development and plowing of the territory as a result of extensive agricultural production, to which the degraded and unproductive arable lands were unreasonably devoted. According to the data of State Geocadaster, the plowing of agricultural land is 78%, and in some areas it is much larger – 88 % in Cherkasy and 90 % in Kherson regions. This level of plowing is not present in any country in the world with developed agriculture. For example, the plowing of the territory of Great Britain and France is from 28,1 to 31,8 %, where the share of arable land ranges from 40 to 57,8 %. The soil is depleted under perennial crops of cereals, sunflower and rapeseed. 57,5 % of our soils are effected by erosion. Annually, about 11 million tons of humus, 0,5 tons of nitrogen, 0.4 tons of phosphorus and 0,7 tons of potassium are lost, and the areas of eroded massifs are expanded by 80–90,000 hectares. Acidification, salinization and solonetzation of soils became widespread. A large-scale phenomenon is their pollution. The large-scale uncontrolled use of agrochemicals, pesticides, herbicides and other "chemicals" on thousands of hectares, which are processed by agroholdings, causes huge environmental damage to the soil. The experience of European and other developed countries confirms that the systemic institutional environment for the implementation of the market circulation of agricultural land should be directed primarily to soil protection and land use optimization, together with a high level of subsidization of agricultural activities and development of rural areas. The central link in land and mortgage lending should be the creation of the State Land Fund with the functions of a mortgage institution to carry out operations to refinance banks for the needs of mortgage lending, register mortgage loans, purchase from the banks mortgaged land provided for collateral, but about "objective reasons were not returned to the creditor. As a result, these lands become state property and are subsequently used according to the established general rules for the disposal of state property and the concentration of land from one land user. The state allocates funds from the state budget and partly uses targeted loans from international financial institutions and other sources of funding for the redemption of pledged land for non-performing mortgage loans. It is proposed to ensure the allocation of the required amount of funds from the state budget for a partial reduction in the cost of mortgage loans is oriented toward the level of the cost of loans in the EU countries.
Key words land relations, financial and credit provision, credit mechanism, land resources, land reform, land mortgage
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