The Moratorium on Agricultural Land Sale as a Limiting Factor for Rural Development

Abstract

The current state, conditions and possibilities on introduction the free circulation of agricultural land in Ukraine are investigated in the research, the main problems of its development are highlighted and the experience of agricultural land sale and lease of in European countries is analyzed. The survey presents the results of interviewing shareholders and agricultural producers in two districts – Bila Tserkva, Kyiv region and Uman, Cherkassy region. The model of the agricultural land market should meet not only economic efficiency and expediency, but also contribute to the sustainable development of rural areas, where the circulation of agricultural land should be preceded by the introduction of appropriate restrictions. In order to prevent landlessness of peasants and the formation of latifundists, the free circulation of land can be implemented in two stages. Stage 1: land inventory, cadaster and land management system, which includes four subsystems: 1) land rights (distribution and provision of land rights, legal registration of land borders, transfer of ownership rights or use rights through the conclusion of sales agreements or lease; the establishment of borders of land and property rights to them; the consideration and resolution of disputes concerning the rights on land plots and their boundaries. Monetary valuation of land (valuation of land and property associated with it, provision of income on tax payments); 3) land use (land use control through territorial planning schemes and rules for land use at the national, regional and local levels; ensuring compliance with land use plans and rules; disputes over land use; compliance with resource-saving business practices and environmental measures); 4) infrastructure development. Stage 2: opening the market for state and communal property land. The priorities on purchase are to be provided for the local communities, restriction on access the market for the legal entities, foreigners, introduction of other restrictions on the sale of agricultural land, the application the taxes differentiations on land sales, fees, etc.