Development of agricultural land markets in countries in Eastern Europe and Central Asia

Abstract

Well-functioning agricultural land markets are a precondition for agricultural and rural development in general. However, agricultural land markets remain weak and still face many constraints in Eastern Europe and Central Asia. By applying a conceptual framework for agricultural land market development in five stages, the paper assesses the current development stage of land markets in countries in Eastern Europe and Central Asia and discusses the main constraints including informalities, absent owners, technical errors and complicated and costly land transaction procedures. Most of the countries have farm structures characterized by excessive land fragmentation and small average farm sizes. The need for coherent national land policies is argued. Furthermore, land management instruments such as land consolidation and land banking in addition to facilitating agricultural and rural development also contribute to land market development.