Methodology For Assessing The Investment And Resource Potential Of Agricultural Land

Abstract

In Soviet times, in the absence of land ownership rights and, consequently, the real estate market, the valuation of land plots was undeveloped, but there was a developed and actively applied mechanism for qualitative assessment. In addition, there was an economic assessment of land aimed at the suitability of agricultural plots for the production of various types of agricultural products. In modern Russia, such work has not been carried out, but now there is a need to assess land use from the perspective of hidden resources. The article describes the authorial methodology for assessing the investment and resource potential of agricultural land use. The investment and resource potential is formed by a cumulative construction of 5 private potentials, reflecting the ability of land use to generate income in comparison with surrounding land uses. Private potentials include soil potential, natural potential, location potential, production potential, and market potential. Soil potential is the resource potential of land use generated by soil varieties contained within land use boundaries. Natural potential is climate, terrain, and other natural factors. Location potential – factors that affect the logistics of a land-use-related business and form the cost part of it. The production potential consists of the demand on commodity markets for products that land use specializes in. Market potential – factors that form the value of land use in terms of the market under the influence of existing combinations of demand, supply, price situation, etc.