Market Turnover of Agricultural Land in Ukraine: Monitoring and Analysis

Abstract

The main objective of the land reform in Ukraine, which was launched 22 years ago, is to involve agricultural land in full, efficient, and transparent economic (market) turnover. During different stages of transformations in land relations, in scientific, political, and social circles, the issue of market turnover of agricultural land was particularly acute and always caused many disputes about precisely what the market turnover of land should be. With the introduction (from July 2021) of the market turnover of agricultural land, questions about its functioning not only remained, but, on the contrary, additional tasks were added: which model of market turnover Ukraine has chosen; what are the results of the functioning of the market turnover of agricultural land; whether the model of market turnover of agricultural land corresponds to the European integration direction of Ukraine’s development, etc. This study is focused on highlighting such issues, clearly revealing the essence of the subject through the analysis of statistical data, which in turn forms the relevance of the results presented. The purpose of the study is to cover and analyse the outcomes of the market turnover of agricultural land in Ukraine and to identify the existing issues. The purpose of the study is a comprehensive examination of the results of purchase and sale transactions of ownership rights to agricultural land plots concluded in Ukraine during 07/01/2021 – 07/01/2022 to determine the main trends in the results. The methods of analysis of the given subject were general scientific, including structural and functional (description and explanation of pricing and functioning of the market turnover of agricultural land); comparison (identification of discrepancies in the data of land value and the basis of its calculation on the basis of collected statistical data on the results of the market turnover of land), abstract and logical (generalisation and formulation of conclusions). Based on the findings, the results of the functioning of the market turnover of agricultural land were analysed, the causes of overstatement of land value were identified and the main price trends were established. The value of agricultural land is calculated by applying the median, the results are compared with the calculations of the average value. It is argued that the state authorities’ data on the value of agricultural land is calculated incorrectly. The number and structure of concluded contracts for the sale and purchase of agricultural land in the context of regions are investigated. The value indicators of agricultural land depending on the location, purpose and type of land are highlighted. The main difficulties in the functioning of the market turnover of agricultural land have been identified. Prospects for further research are to find solutions to the existing problems of market turnover of agricultural land by applying the findings of the study.