Price levels of agricultural lands as a background for their effective market functioning

Oleksandr Shpychak

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 3

Abstract: The purpose of the article is to offer the methodological approaches, make the procrastinated calculation of the price level of agricultural lands in Ukraine, substantiate the necessity in determining this level as a guarantee of their market effective functioning background to the moratorium on lands buying and selling termination, highlight the existing domestic experience in the agricultural land market functioning and especially their price level as for the beginning of the twentieth century. Research methods. The methodology is based on the use of the dialectical method of studying and the systematic approach for creating methodology approaches to determining the estimated price levels for agricultural lands; retrospective analysis and method of empirical research made it possible to consider domestic experience of the land market functioning, role of the relevant land banks in this process and providing the loans for land buying, level of land prices, collateral terms, etc. Research results. There has been grounded the necessity for making a selective surveys considering the existing domestic experience in determining the anticipated demand and supply in the land market. There has been determined and tested on the basis of the US experience the methodical approach based on the rent capitalization of the estimated price level per 1 hectare of arable land in Ukraine. The calculation of the estimated land prices is based on the buying power of the Ukrainian population and developed world countries where the land markets exist. There has been also determined the estimated level of land prices through grain equivalent. Elements of scientific novelty. Scientific novelty of the article lies in the grounded necessity of the methodological approaches to calculating the price of agricultural lands in Ukraine up to termination of the moratorium. There has been also made a forecasted calculation of appropriate price levels. Practical significance. There has been defined the estimated prices of agricultural land in Ukraine up to the moratorium termination. In current economic conditions in Ukraine the high prices for agricultural land, immediately after the moratorium termination, are not expected. It is required to implement a minimal level of prices. The price level will be depended on buyers who get access to the land market and the concept of further rural development. There has been proposed the necessary measures on the state level that will ensure the effective functioning of the land market. Tabl.: 2. Refs.: 29.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411504

DOI: 10.22004/ag.econ.411504

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