Differential land rent in Agriculture in Russia

Issue № 10, 2024, article № 4, pages 36-43

Section: Economic mechanism of managing

Language: Russian

Original language title: ДИФФЕРЕНЦИАЛЬНАЯ ЗЕМЕЛЬНАЯ РЕНТА В СЕЛЬСКОМ ХОЗЯЙСТВЕ РОССИИ

Keywords: DIFFERENTIAL LAND RENT, AGRICULTURE, MARGINAL AND AVERAGE COSTS, THE NORMAL RATE, THE TOTAL COST, REVENUE FROM SALES OF PRODUCTS

Abstract: The article is devoted to the study of the formation of differential land rent on landplots suitable for the production of agricultural products in modern economic conditions of management in Russia. The conditions and causes of land rent, including differential rent, are formulated. The method of determining the differential land rentis described. Experimental calculations of differential landrents have been carried out in thirty-nine subjects that are part of the Non-Chernozem economic zone, the CentralChernozem, Volga and North Caucasian economic regions, which confirmed the basis for the formation of the market value of agricultural products at the level of marginal, rather than average production costs. Marginal costs in 2020 were identified on the productive lands of the Vologda region during the cultivation of a group of grain and leguminous crops and grain production. The normal rate of return on advanced production capital here was 13.4 percent. It has been established that differential landrent has a significant impacton the profitability of a commodity producer. Subjects with medium and high differential land rents cultivate land suitable for agricultural production as much as possible, unless other non-economic factors interfere with this. Lands that do not form a differential land rentor are unstable to its formation are partially with drawn from agricultural production. The main methods and risks of introducing unused productive lands in to agricultural circulation are formulated.

Authors: Polunin Gennadii Andreevich