Features of the modern institutional environment of land relations in the agricultural sector

Abstract

The article presents the results of research into the characteristics of the institutional environment of land relations in the agricultural sector under the influence of such institutions as the state and property, which determine the current model of land use. Among the selected elements of the institutional environment, the formation and negative consequences of the institution of land shares are considered in more detail – a kind of “institutional trap”, the influence of which is still difficult to overcome. The negative effect of consolidating this undesirable institution is shown, which has led to the preservation to this day of a large proportion of ownerless agricultural land, as well as other negative processes during their use. For example, by the beginning of January 2022, more than 40 % of the land area of collective and state farms, distributed among rural residents in the 90s, was in common shared ownership. Moreover, the area of land shares in the status of unclaimed reached over 11 million hectares, despite the fairly active activity of local governments in this matter. It is noted that one of the modern characteristics and consequences of the institutional environment is the presence of more than 30 million hectares of unused agricultural land, including due to unfavorable rent relations. A conclusion is drawn about the great role of digitalization as a critical element in improving the institutional environment, primarily based on the formation of the necessary database of complete and reliable data on land resources. It has been determined that the solution to the large-scale tasks set for the development of the agricultural sector and the return of abandoned land to circulation will help overcome the negative impact of dysfunctional institutions. Hence the importance in the implementation of priority directions of state agricultural policy of such principles as involvement and partnership, differentiation, systematic measures and strategies.