TRANSACTIONS WITH LAND PLOTS AS PART OF AGRICULTURAL LAND IN THE NON-BLACK EARTH ECONOMIC ZONE OF RUSSIA

DOI 10.33305/2012-85

Issue № 12, 2020, article № 8, pages 85-90

Section: Economic mechanism of managing

Language: Russian

Original language title: СДЕЛКИ С ЗЕМЕЛЬНЫМИ УЧАСТКАМИ В СОСТАВЕ СЕЛЬСКОХОЗЯЙСТВЕННЫХ УГОДИЙ В НЕЧЕРНОЗЕМНОЙ ЭКОНОМИЧЕСКОЙ ЗОНЕ РОССИИ

Keywords: LAND PLOT, AGRICULTURAL LAND, TRANSACTION PRICE, RENT, PURCHASE AND SALE, AUCTION, STATE AND MUNICIPAL PROPERTY, CAPITALIZATION RATIO

Abstract: Today we can state that the transformation of state ownership of agricultural land did not end with its free transfer to private property, as planned at the beginning of the land reform, but turned into a new quality, based mainly on the sale or lease of land. For the analyzed period from 2015 to the beginning of 2019, in the entities of the Non-Black Earth Economic Zone of Russia, respectively, more than one and a half thousand and about six thousand transactions were made at auctions for the sale and lease of land as part of agricultural land owned by state and municipal property. The studies revealed a number of advantages of land leasing transactions: a higher amount of income going to the municipal budget compared to the size of the land tax; the possibility of including the public interests of the municipality in the contract. The analysis of the ratio of the prices of land lease and sale transactions established the main range of capitalization coefficient values ​ ​ for land - from 7 to 15‰. However, in a number of federative subjects, the value of the coefficient went above or below the specified limits. The conclusion of a lease agreement on the terms of a reduced capitalization factor today is unprofitable for the tenant, but it is beneficial for the tenant. In such a case, the landlord could reimburse the price of the land for a shorter period of time, but involuntarily encouraged entrepreneurs wishing to expand land allotments to refuse to participate in such an auction. To create equal conditions for the auction participants, a minimum term for concluding land lease agreements as part of agricultural land and under state and municipal ownership for 7 years was proposed at the legislative level.

Authors: Polunin Gennadii Andreevich