THE PROSPECTS OF USING OF UNUSED AGRICULTURAL FARMLANDS

Issue № 10, 2017, article № 5, pages 45-53

Section: Economic mechanism of managing

Language: Russian

Original language title: ПЕРСПЕКТИВЫ ИСПОЛЬЗОВАНИЯ СЕЛЬХОЗУГОДИЙ, ВЫВЕДЕННЫХ ИЗ ОБОРОТА

Keywords: PRODUCTION GROWTH, LAND RENT, PRODUCTION FRONTIER, CULTIVATED AREA

Abstract: This study estimates the area of unused agricultural lands that could be involved in cultivation subject to different assumptions on drivers of agricultural production growth. The basis of the applied technique of a research is made by model of nonparametric frontier of production capabilities of agriculture of Russia. Modernization of a technique consists in differentiation of frontier of production capabilities on groups of regions with similar natural conditions. The model is complemented with the variables reflecting involvement in production of the lands suitable for crops. An assessment of volumes of involvement of unused farmlands in agricultural production at various sets of prerequisites of its growth is given. The model allows to define a gain of crops under scenario conditions of planning, the change in price for agricultural production and (or) conditions of the government support of agriculture, limit costs of production, efficiency of use of resources, an increment of an annual land rent, volume of available resources. The contradiction is revealed between the strategies aimed at capitalization of agricultural lands and their re-cultivation. The carried-out calculations predict low rates of return to a turn of earlier abandoned farmlands and instability of this process. The forced expansion of acreage is inexpedient: it will lead to decrease in marginal income, falling of efficiency of use of resources, will slow down development of livestock production.

Authors: Svetlov Nikolai Mikhailovich