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The impact of degradation processes on the monetary evaluation of agricultural land

Author(s) Чумаченко О. М., , ,
Кривов’яз Є. В. , , ,
Category Economics
year 2020 issue Issue number 97. Part 2
pages 45-52 index UDK 332.7;330.131.5
DOI 10.31395/2415-8240-2020-97-2-45-52 (Link)
Abstract Land is an indispensable part of human habitat. In contrast to other modes of production, which wear out during use, lose their useful properties and remove themselves from productive use, natural productive capacity of land is not diminished, but it even increases on the condition of its sustainable use. Consequently, theoretically, it can be considered that land is a lifelong mean of production. Inappropriate land use causes its degradation, reduction of agricultural ground productivity, it means reduction of land price . Agricultural land degradation in Ukraine is quite significant — total area of agricultural land that has destructive impact of water erosion is 13,3 million hectares (32 %), including 10,6 million hectares of arable land. There are 4,5 million hectares with medium — and strongly washed soils within the eroded soil, and 68 hectares completely lost soil horizon. More than 6 million hectares of land systematically suffer of wind erosion. The purpose of the article is to outline the approach to assess the impact of agricultural land degradation on their monetary evaluation, and to measure the loss of land tax, caused by deterioration of land resources as a result of degradation. The following methods were used in solving the tasks: monographic (in the development of scientific publications on environmental and economic principles of land use and protection, regulations on land use, statistical collections); mathematical modeling, economic analysis, determination of relative values, averages, grouping (in the study of factors that cause degradation of land resources). An assessment of the impact of agricultural land degradation on the normative assessment of land and on the land tax was made. The study has demonstrated, that degradation of agricultural land causes significant social-economic damage — reduction of normative monetary evaluation 2,3 times, and annual loss of land tax at the level of 464,5 billion UAH. These indicators make the widespread introduction of measures to combat land degradation and, above all, soil erosion very relevant.
Key words Land, monetary evaluation, land resources, land degradation
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