Land rent as an economic instrument of land payments differentiation setting the economically available agricultural lands to provide profitable commercial use

Abstract

The article examines the system of agricultural land use and the impact of its elements on in-country spatial heterogeneity, and the spatial development of agricultural land use in the regional aspect – the expansion or contraction of arable lands. The geographic space of the agricultural land use of a country, a macro-region, a region-component of the agricultural industry and the socio-economic system of life are quantitative and qualitative changes in the use of the existing potential of productive agricultural lands, an increase or decrease of their boundaries under the combined influence of social, economic, institutional and infrastructural elements of the agricultural land use system. Among the elements of this system that affect the expansion or contraction of the area and boundaries of agricultural land use and their quality condition: bioclimatic potential; the level of innovative development, agricultural technologies; access to land, finance, and sales markets; effective demand for agricultural products; availability of development institutions (land information systems, monitoring of land use, land management, cadastre, land valuation, land redistribution fund - land bank). Decisive importance is the quality of state regulation of land relations (land and tax legislation) and state management of land use, and the topic of this article - the quality and level of state support for agricultural activities. The harmonization of the components of the agricultural land administration system is decision which, how and how much apply one or another regulation factor of land relations – the mechanisms of market self-regulation or direct state regulation.