Acquisition of Agricultural Land by Domestic and Foreign Legal Entities: Legal Prospects for Ukraine and other Countries

Agricultural lands are an indispensable resource for ensuring food security in Ukraine. Ukraine is on the path of reforming land relations and forming a market for agricultural land. Since Poland is close to Ukraine in terms of climatic conditions and land use, its experience had been taken into account. The purpose of the article is to form the process of the agricultural land market in Ukraine based on the experience of Poland. To study the research problems, comparative methods of research and observation have been used, as well as methods of synthesis, analysis and abstract logical approaches to the search, justification and determination of periods of development of land relations in Ukraine and Poland. The article discusses the approaches of scientists to determining the essence of the “land market”, outlines the conditions for the development of the land market in European countries (Holland, Switzerland, Austria, Germany, Great Britain, Scotland, Spain, Poland, Bulgaria, Romania, Croatia, and Estonia). The periods of development of the land market in Poland and Ukraine have been highlighted. An analytical assessment of the market for the purchase and sale of agricultural land in the regions of Ukraine has been carried out (indicating the number of transactions completed and the total area of land plots). Comparative information on the cost of land in the European Union countries has been provided. The authors’ vision of the process of forming the agricultural land market in Ukraine is summarized, highlighting: I - Legal regulation; II - The step-by-step process of implementing the reform in accordance with the legislative framework, features of the implementation of land reform under martial law; III - Implementation of the land market using a transparent system through the Application (Unified portal of public services) Action; VI – State control over available agricultural lands and their legal structure; V – Conducting an expert assessment of land plots and/or determining their regulatory assessment; VI – State control over available agricultural lands and their legal structure; VII - Constant monitoring of the functional use of agricultural land.

The agricultural land market was launched in Ukraine on July 1, 2021. Before its opening in Ukraine, experts had attempted to outline various scenarios of its operation, but most part of the predictions proved to be far from reality. The inadequacy and unsoundness of these predictions raise the importance of studies devoted to the current conjecture of the agricultural land market in Ukraine. The article contains results of a study of the processes involved in the formation of the agricultural land market in Ukraine and its current conjuncture. A review of the legal acts of Ukraine that streamlined the evolution of relations on this market was made: the Decree of the President of Ukraine “Urgent measures to accelerate reforms in the agrarian sector of the economy” (1999), the Land Code of Ukraine (2001), the Decree of the President of Ukraine “Supplementary measures on social protection of rural residents who are owners of land plots and land parts (shares)” (2002), the Law of Ukraine “Amendments to some legislative acts of Ukraine on terms of the turnover of agricultural lands” (2020). A comparison of the cost of land lease in Ukraine and EU countries in 2019, and the actual weighted average price of 1 hectare of agricultural land in Ukraine and some other countries was made. Domestic sources of information on the land market operation in Ukraine are given. It is concluded that the land market in Ukraine is in the passive state now, with both demand and supply being slack. The factors behind the low demand and supply on the domestic land market were identified: the demand is constrained by a limited range of buyers and lack of uncostly mortgage loans for purchase of land; the supply is constrained by the low market price of 1 hectare of land, inability of the majority of residents to sell their shares in case of the valid leasing contract, bad legal and financial literacy of rural inhabitants. The efficiency of land leasing in Ukraine remains to be low due to irrational use of soils by land tenants. The need for government regulation of this market is shown.

The need to improve the processes of land regulation is related to the problem of rational and effective use of land for various purposes in Ukraine. The issue of the land market is relevant in the conditions of martial law. Expropriation of agricultural land plots continues, agreements are actively concluded. The trends observed in the process of land use require new organizational and legal approaches to the regulation of land use and the creation of economic incentives for rational use. A mechanism for activating the land market and land protection in Ukraine is needed. The article summarizes the main principles of improving the effectiveness of the use of land of individual households, farms, holdings and the meaning of its assessment indicators. The study also examines the main achievements and problems of the land market in Ukraine; problematic aspects of the realization of the tenant's preferential right to purchase a plot of land and the transfer of the lease right without the owner's consent are revealed. The author describes the procedure and problems of compensation for damage caused to land owners by hostilities; raises questions about the territorial organization of agricultural and non-agricultural lands, assessment of the validity of land redistribution, restrictions on land use. The informational basis of the research is the materials of the Ministry of Justice of Ukraine, the State Service of Ukraine for Geodesy, Cartography and Cadastre and the State Statistics Committee of Ukraine, own research results. In the legal aspect, changes in the legislation on increasing the efficiency of land use by individuals and subjects of the state sector of the economy were analyzed. The positive consequences of the implementation of the specified legislative initiatives are indicated. The author emphasizes that land resources are today an element of food security in the conditions of armed aggression and recession of the national economy, which will worsen after the end of the war.

The qualitative development of a democratic society and the improvement of the functions of the rule of law in our country are closely connected with the understanding of human rights, including in the field of land relations. After all, the land, its subsoil and other natural resources located on the territory of Ukraine, in accordance with the Constitution of Ukraine, are the objects of property rights of the Ukrainian people exclusively, and are a national treasure. Today, Ukraine is undergoing a complex process of reforming land relations and adapting them to modern political, economic and social needs, especially in an open market for agricultural land. With an extremely strong agro-industrial potential, Ukraine has a significant role to play in overcoming the global food crisis. However, in the current system there is no competent and balanced state policy, and appropriate mechanisms for its implementation, on the integrated development of land relations and adaptation of land reform in Ukraine. As never before, there is a need for quality and effective public administration in the field of land use within the functioning of the agricultural land market in Ukraine. With the beginning of land status in Ukraine, new questions arose about the directions and mechanisms of improving land relations, the formation of the land market, the solution of which involves scientific and practical clarification of a wide range of problems in its infrastructure. Due to the introduction of a new wave of land reform in Ukraine, public administration in the field of land use of state and communal property should acquire a modern character. Along with the introduction of a transparent market for agricultural land, the reform also aims at transparent and efficient land management. One of the mandatory components of this goal is the introduction of an effective system of public administration in the field of land use of state and communal property. Thus, the formation of effective public administration in the field of land use within the functioning of the agricultural land market in Ukraine, including taking into account international experience, would ensure quality and rational use and protection of land in Ukraine, guarantee the rights of land owners and users and effective governance, which requires a systematic and scientific approach to addressing issues.

Purpose. The aim of the article is to research the theoretical and practical aspects of the current state and prospects of development and regulation of the agricultural land market in Ukraine. Methodology of research. The methodological basis of the study is the dialectical method of scientific knowledge. General scientific and special methods are used in the course of the research, namely deductive, abstract and logical – in the study of problems of the agricultural land market in Ukraine, in assessing the current state of its functioning. Findings. The importance of the Ukrainian land as the main national wealth of the Ukrainian people is proved. Aspects of functioning of the land market in Ukraine at the present stage are described. The risks of launching the land market in times of war and imperfect legislation are considered. The expediency of sale of land to legal entities and concentration of one natural person not more than 200 hectares is substantiated; if business needs more than 200 hectares of land, then it is worth creating cooperatives and more citizens or families will be able to make a profit from joint business. A special mechanism for taxation of agricultural land sales is proposed. The expediency of free sale of land in Ukraine till 2025 is proved. It is substantiated that a tax equivalent to at least five thousand euros per hectare will provide significant revenue to the budget, prevent large-scale speculation in the land market, ensure high value of land and make it possible to use it as the expensive collateral for the purchase of agricultural machinery. Originality. It is established that the free sale of agricultural land in Ukraine to legal entities and individuals is ineffective, and it is advisable to sell only to the state and local communities. It is proved that the increase in the value of agricultural land in Ukraine and the reduction of possible speculation on the land market will be positively influenced by the taxation of land sales operations. Practical value. The obtained results of the study, which are expressed in the conclusions and proposals, contribute to solving problems of ensuring the effective functioning of the agricultural land market in Ukraine. Key words: land; land market; land price; agricultural land; taxation.

The land market in Ukraine is currently being formed. Therefore, it is now especially important to master the experience of using the mechanisms of regulation of this important market, which have undergone a long and successful testing in foreign countries. The article reveals the main directions of international experience in regulating the market of agricultural land.To ensure the optimal distribution of land among users and for the efficient functioning of the land market in most countries of the world, land policy is structured in such a way that agricultural land is cultivated by those who are able to ensure its most productive use. The article analyzes the possibility of applying this experience in Ukraine on the basis of generalization of modern foreign practice. The agricultural land, in contrast to the land for industry, transport and other industries, is the main means of production. The article notes that the current model of state regulation of the land market can lead to the monopolization of such markets and the acquisition of agricultural land by large corporations. There are considered the opinions of various authors on this issue, and has defined the need to form the main aspects necessary for the efficient use of land resources.The example of individual countries shows that the lack of active state intervention in market turnover has led to the monopolization of agricultural land by large corporations. It is concluded that at the present stage of implementation of the policy that ensures the efficiency of land use in agriculture, the state should strengthen the functions of regulating land use processes. There were some specific proposals for improving the system of regulation of land relations in agriculture, which should play a progressive role in the further development of the state. JEL classіfіcatіon: H3, H2

The liberalization of Ukrainian agricultural land market does not lose their relevance in the process of the European integration. Ukraine’s transition to the free market of agricultural land requires a theoretical substantiation. The scientific research of modern European approaches to the regulation of the agricultural land market is needed. The purpose of this research is an analysis of the formation and development prospects of the agricultural land market, identifying the possible consequences of the moratorium removal on the purchase and sale of agricultural land, and the search for an acceptable variant of further development land reform policy in Ukraine. The theoretical basis and features of the functioning of the agricultural land market of some European countries that will provide the ability to extrapolate these data into Ukrainian practice are explored in this research. It is expected that many trends are common to the markets of the land of Ukraine and neighbouring countries. Fundamentals of forming effective and transparent agricultural land market require the creation of understandable and clear mechanisms for the regulation of land use systems at various levels. Methodology. In this research are used historical-comparative and logical-dialectical methods for investigating the theoretical foundations and the main determinations of the agricultural land market in Ukraine. Features of circulation of agriculture land plots in Ukraine are submitted. The authors used a system-structural method and a comparative analysis method to justify and compare the indicators of agricultural land use efficiency in Ukraine and some of the European countries. Results. The economic effect of the prospects of liberalization of the agricultural land market in Ukraine is assessed. The determinate hypotheses about perspectives of agricultural land liberalization in Ukraine are argued. Practical implications. The conducted research allows stating that to date, all risks and fears of land market liberalization are insignificant in comparison with the benefits that Ukraine may have in the coming years. An analysis of international experience shows that the reform of the land market was often conducted during the period of economic crises and it was the liberalization of land markets that facilitated the restoration of economies. This should be an incentive for modern Ukraine, to choose finally an approach to market liberalization of agricultural land as a promising way to effectively implement its resource potential.

The investigation of the problems and the prospects of the functioning of agricultural land market in Ukraine are focused on. The order of land relationship in agriculture is investigated. The advantages and the disadvantages of moratorium on the purchase and the sale of agricultural lands are considered. The advantages and the disadvantages of the functioning of agricultural land market are presented. It is determined that disadvantages of moratorium on the purchase and the sale of agricultural lands are much greater than of advantages. The parameters of the functioning of agricultural land market in Ukraine are established. The solution of the problem of the decline of irrigated farming in the conditions of moratorium on the purchase and the sale of agricultural lands is given. It includes granting by state in lease to companies agricultural lands on maximum term and the conclusion of the new contract of lease with same firm also on maximum term after finish tentative the contract of lease. The foreign experience of the functioning of agricultural land market is analyzed. Ukraine is not prepared to introduction agricultural land market is established. It is related to the fact that value of land would increase as result of bidding. As result of the increasing of the value of land will increase the term of it payback. For the decreasing of the term of the payback of the lands of agricultural purpose producers will have necessity in the increasing of prices on products. They cannot rise prices through high the yields of agricultural crop. Therefore, agricultural enterprises will be increasing the term of the payback of lands that It will cause to greater of decreasing their profitability. The decreasing of profitability will cause to decreasing their own capital and they will get less financial possibility for producing in next period of activity. It will cause to the decreasing of agricultural manufacture. Practical recommendations regarding the formation of agricultural land market in Ukraine is given. It is includes the formation of agricultural land market in that case when agrarian firms will be getting sufficient profitability in order to cover the value of the land of agricultural purpose. It is determined that creation of agricultural land market should be carried out gradually for decreasing risks at presence greater opportunities of the doing of economic activity in agriculture. Keywords : land, market, agriculture, financial resources, moratorium, state.

The question of the feasibility of becoming a land market in Ukraine has become particularly relevant in view of the European integration processes taking place in the country today and remains one of the most debated in Ukraine. Based on these considerations, the purpose of this article is to expose the role of public authority in the development of the land market in Ukraine. Also, in order to avoid duplication of functions by executive authorities and local self-government bodies, in our opinion, it is necessary to create a State Service for Land Management and Land Protection. In doing so, the Ministry of Agrarian Policy and Food of Ukraine, the State Service of Ukraine for Geodesy, Cartography and Cadastre should delegate to the Service tasks, functions for the organization and control of the land market, which is the main and the only direction in this field. The State Land Management and Land Conservation Service can only have such powers that will be used to meet state needs and not the departmental interests of the authority or the interests of its individual officials. We also propose to adopt the Law of Ukraine "On the State Service for Land Management and Land Protection", which will reveal the organizational and legal mechanism of activity of the authorities, define guarantees for the protection of Ukrainian peasants, and regulate and control the land market in Ukraine. Introducing the agricultural land market, we have every opportunity to regulate the rules of existence and functioning of the land market in such a way as to give the public authorities the opportunity to realize the ownership of land guaranteed by the Constitution, namely local self-government bodies. Thus, successful foreign experience leads to the conclusion that, on the one hand, it is necessary to balance the interests and guarantees of producers working on land, and on the other - to protect the interests of its owners. In order to increase the investment attractiveness and economic return of agricultural land, it is necessary to improve the mechanism of their lease. The problem of the role of public authorities in the field of land market development in Ukraine is not well understood, and the state of legal support for this problem needs further improvement to the relevant EU norms and standards.

Land resources are among the most valuable components of national wealth, and their rational use can contribute to the sustainable economic development of the state. In this regard, great hopes are placed on the development of the agricultural land market, given its potential as a tool for stimulating the agricultural sector and attracting foreign investment. Due attention and support to it will also help the flow of financial resources to local budgets, which is important for the development of infrastructure, health care, education, and social programs. Such a need seems especially urgent in the conditions of the Russian-Ukrainian war. In the article, based on the official statistical materials of the State Service of Geodesy, Cartography and Cadastre of Ukraine and the Ministry of Finance of Ukraine, a series of thematic maps that reflect the key economic indicators of the state of the agricultural land market in Ukraine were developed and constructed. Cartographic modeling was carried out using special ArcMap software. a linear scale is taken as the most optimal. Hydrography, political-administrative boundaries, and regional centers were selected as general geographic elements. Colored cartograms and numerical signatures were used to present relevant thematic information. Based on the analysis of thematic maps, the regional features of the dynamics of land purchase and sale transactions, losses of the agricultural land market due to full-scale invasion, weighted average prices of commercial land, and quarterly budgetary revenues of communities from the agricultural land market were noted. The general results of the work of the land market at the first stage of its introduction (1.06.2021–1.01.2024), the influence of the Russian-Ukrainian war on its activity, and further prospects for development on the path to liberalization and deregulation of land relations are analyzed. Special attention is paid to the importance of full-fledged activity of the land market for improving the financial capacity of communities. Despite heavy losses from Russian aggression, forced restrictions for the period of martial law (for example, the ban on the free transfer of land plots into private ownership, the closure of the public map, work with the coordinates of land plots under the control of the Security Service, etc.), Ukraine has passed the test with dignity at the first stage of agricultural land market operation. It can further develop the market with greater opportunities for agribusiness in the second stage, improve the state of the economy and people's living standards. Constructed thematic maps can become the basis for making informed management decisions to optimize the operation of the agricultural land market of Ukraine. If necessary, other additional data can be added to the cartographic analysis. Keywords: land market, buying and selling, cartographic modeling, thematic maps, community.

Introduction. One of the effective mechanisms for regulating land relations is economic. It becomes especially relevant in market conditions. This year's opening of the agricultural land market in Ukraine has its own peculiarities. Thus, land plots provided at the expense of share lands within the norms of free privatization to the citizens of Ukraine joined the market circulation. Despite a number of significant limitations, there is market activity, although not as large as expected. At present, the introduction of a comprehensive mechanism for determining the value of land in today's market conditions remains relevant. Results. The study consists in the analysis and generalization of the current state and approaches to the formation of the land market in Ukraine and the assessment of land as its main component. The article considers the issue of mandatory monetary valuation of land plots, it is established that the types of monetary valuation are based on significant differences. Monetary valuation of land, both regulatory and expert, are the main pricing indicators (factors) of land market formation, and mechanisms of state regulation in promoting the rational use and protection of land. The existence of different approaches to land valuation has created the preconditions for the formation of two different bases of valuation (fiscal (tax) and market). Conclusions. The opening of the agricultural land market is a significant step by the state to enable landowners to fully exercise their rights to own, use and dispose of them, and to this end a system of measures has been developed at the state level to improve the opening and functioning of the land market. Keywords: monetary evaluation of land, state regulation, land plot, agricultural land, land market.

The relevance of the study is due to the abolishment of the moratorium on the sale of agricultural land and the risks arising from the land market opening in Ukraine. The paper aims to identify the effectiveness of land mortgages for the agricultural sector of the economy and determine the mechanisms of state policy aimed at legal groundwork to guarantee rights of landowners. The comparative analysis of the land market development in the Central European states contributed to identifying system-based state management of land market formation processes, which had a positive effect on the land reform outcomes in these states. The analysis results confirmed the timeliness of the land market opening in Ukraine, which is related to the chosen economic and political course. The investment attractiveness of the Ukrainian agro-industrial complex is due to high productivity of lands and is supported with the possibility of mortgaging agricultural land. Neutralization of factors hindering the foreign investment attracted to agricultural business will contribute to the attraction of efficient technologies and highly productive use of the agricultural land in Ukraine. Some measures aimed at the land relations transformation in Central Europe do not consider the peculiarities of the Ukrainian agricultural sector. In particular, it is not reasonable to sell agricultural land to foreigners. Assessment of certain provisions of the Law of Ukraine ‘On Amendments to Certain Legislative Acts of Ukraine on the Conditions of Agricultural Land Transactions’ No. 552-IX shows the inevitability of abuse by foreign-owned banking institutions of the possibility to alienate the lands pledged under any loan agreements. Criminalization of evasion from the alienation of agricultural land as collateral will prevent the risks of acquiring Ukrainian agricultural lands by foreign-owned banking institutions. It is concluded that the banking system will only perform the functions of an investor in the agricultural sector of the economy, so there is a need to strengthen the state regulation of the land market in Ukraine.

The need for state management of the land market is stipulated with the necessity for rational use of agricultural land and preservation of its fertility. This study aims to identify the risks that have arisen with opening the land market in Ukraine. Moreover, it develops effective measures to minimize such risks, designed to enforce the legal right of amalgamated territorial communities to acquire ownership of agricultural land. The comparative law method was used in a sample analysis of legal precedents on liability for offenses in land relations, as well as the regulations that establish liability for offenses in this field and certain provisions of the legal precedents of the European Court of Human Rights. Following the study, proposals were formulated intending to improve land management in favor of the decentralized model and enforce the legal rights of amalgamated territorial communities due to the opening of the land market in Ukraine. An innovative strategy is proposed for the functioning of land relations, aimed to improve the process of their regulation in the land market performance, and its components are outlined. Implementation of the proposed strategy for the functioning of land relations will improve the transfer mechanisms of agricultural land to the amalgamated territorial communities. It will also mitigate the identified risks in the land market performance in Ukraine.

Purpose. The aim of the article is the characteristics of modern theoretical and practical aspects of the functioning of the agricultural land market in Ukraine in the second half of 2021. Methodology of research. The following methods were used in the study: statistical analysis and comparison – in studying the problematic aspects of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Conditions of Circulation of Agricultural Land”, the dynamics of gross domestic product and public and state-guaranteed debt as the main factors the dynamics of the potential value of land; logical assessment – in substantiating the proposals to restore the moratorium on the sale of agricultural land and repeal the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Conditions of Circulation of Agricultural Land”; generalization – in the process of formulating conclusions based on the results of the analysis. Findings. It is established that during the second half of 2019 – the first half of 2021 there was a continuous decline in gross domestic product of Ukraine and a sharp increase in public debt, which negatively affects the potential value of Ukrainian agricultural land. The necessity of prolonging the moratorium on land sales is substantiated. The principles for the development of a new Law of Ukraine “On the market of agricultural land”, which would take into account the interests of all land users. Originality. Recommendations on the need to renew the moratorium on land sales, repeal the current Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Conditions of Circulation of Agricultural Land” and develop a new, state- and national-oriented Law of Ukraine “On Agricultural Land Market” are formed. Practical value. The practical implementation of the proposed measures will create favourable conditions for the development of the national land market, which will allow to solve state problems in the land and investment spheres, as well as to stimulate the development of the national economy. Key words: land, agricultural land, gross domestic product, state and state-guaranteed debt.

The article is devoted to the study of directions and principles of the state land use management. The authors describe the rational land use methods ways of Ukraine's land resources awareness formation in the minds of Ukrainians. It has been revealed who owns the land resources in Ukraine. The article describes the process of forming the land market in the context of land reform and describes the peculiarities of changes implementation. The principles of land use rationalization and the introduction of effective land use in order to improve the quality of life for the Ukrainian people have been clarified. It was concluded that the state management system should be established for the rational use of land resources in order to obtain the maximum result from the realization of the soil potential. In turn, one should understand the essence of the concept of rational use. Rational use is the one which takes into account all features of land resources in order to ensure high efficiency of land use and compliance with all norms of land protection, prevention of fertility deterioration. The purpose of the article is to study the process of implementing the land reform and the formation of the land market in Ukraine, to overview the purpose of this process in the form of benefits for the Ukrainian people, to determine the role of state administration in the process of effective land use, to describe the principles of public administration and principles of rational land use. The creation of a land market in Ukraine is a necessary measure, which in the long run will solve a complex of existing problems, among which are legalization, control and compliance with the rules for buying and selling land. In fact, these processes are already taking place, but uncontrollably. Rational use of Ukraine's land resources is possible only with effective state land and general agrarian policy.