Uman NUH | today: 04/14/2024

Land market development of agrarian sector of the economy in a context of financial instability

Author(s) Kolotukha S.M., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Мельник К. М., , ,
Category Economics
year 2022 issue Issue number 100. Part 2
pages 142-156 index UDK 332.72:631.11
DOI 10.31395/2415-8240-2022-100-2-142-156 (Link)
Abstract The introduction of well-functioning market for agricultural land plays an important part in maintaining the economic development of the country, the population’s quality of life and the permanence of one of the most important resources in agricultural production - land. According to the results of the research, it was found that for the normal functioning of the processes of expanded reproduction in the economy, there are available financial resources. The sourcing of funding is the base for the mechanism of increased reproduction, the structure of the mechanism, the peculiarities of its functioning and efficiency depend heavily on their properties. It was also established that the resource potential of native agriculture is at the level of developed Western countries. However, since 2013, due to the annual uncontrolled increase in grain exports to the EU countries, its consumption for own production has decreased from 32 % to 11.6 % instead of 40–50 %, which the EU countries owned and exported from Ukraine and other countries. It is revealed that the production of gross domestic product per inhabitant of Ukraine is six times less than in Poland and 12 times less than in the EU countries. Funding cuts for erosion-control and soil protection activities was also revealed, despite the unsatisfactory environmental condition of the Ukrainian soil. It was found that the funding of the reproduction and protection of land resources, the organization of their rational use, the achievement of sustainable environmental and food security is possible by improving management methods - regulation of land tenure arrangements and spatial planning. Each land owner should seek to carry out protection measures, because the value of land and the valuation of land as an object of collateral depend on this. The main aspects of financial support for the agrarian sector which are implemented by the mechanism of cheaper loans and compensation for lease payments are considered. It is proved that the financial and credit efficiency for ensuring the development of the agrarian sector of the economy depends on the effectively established financial policy of the industry and the state as a whole, which will contribute to the unification of the economic interests of agricultural producers and the state.
Key words agricultural sector, land market, financial and credit support, state support, credit mechanism, budget funds, land mortgage lending, land (mortgage) bank.
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