“CRISIS AS A TIME FOR OPPORTUNITIES OR A CHANCE FOR DEVELOPMENT” OF AGRARIAN-BASED ECONOMY OF ALTAI KRAI

Abstract

Altai Krai is among leaders in the food market of Russia being in the top10 of agro-oriented regions. Though Altai Krai produces about 3% of agricultural output of the country, its agricultural productivity remains low, mainly due to poor capital intensity and investment attractiveness. In the authors’ opinion, further development of the investment potential of agricultural production through the inclusion of land resources into civil circulation, may have a significant influence on the increase of agricultural productivity and the solution of problems of import substitution and food security in the Russian economy. The analysis of the capacity of the regional market of land mortgage suggests that mortgage lending against pledge of agricultural lands can act as a mechanism able not only to draw long-term extra-budgetary investment funds but also to form the environmentally oriented system of agriculture. The authors come to conclusion that land banking-mortgage lending makes it possible to expand investment opportunities in agricultural production and at the same time to encourage land owners to improve farming practices and land quality, to apply soil conservation technologies and to preserve and increase soil fertility.