On the issue of assessing the value of agricultural land in the region based on its economic potential

Abstract

This paper presents a study of the possibilities of using statistical indicators of the functioning of the agricultural sector of the region’s economy to estimate the value of agricultural land resources. The emerging market of agricultural land in the Russian Federation is characterized by a small number of annual transactions; therefore, the assessment of the value of land at the territorial and regional level based on the mechanisms of supply and demand is extremely difficult. To substantiate the tax base of land tax and (in some cases) the rent amount, the cadastral value of land plots is used, which is determined by the results of the state cadastral valuation of agricultural land. The methodology for cadastral valuation is debatable, since it does not provide for surveys of specific land plots; at the same time, it relies on indicators of soil quality. Therefore, its results may not be relevant, because they do not take into account important elements of economic fertility. The purpose of this study is to develop a methodological approach for estimating the value of land, which makes it possible to reflect the real economic potential of agricultural land in the region. This approach is based on the method of direct capitalization of the specific conditional net income calculated on the basis of statistical reports of agricultural producers. The methodology was tested on data from the Voronezh region, as a result of which the authors’ differentiation of municipal districts was formed according to the estimated value of agricultural land. According to the results of a comparative analysis, it is recommended to consider the issue of the advisability of changing the current methodology for assessing the value of agricultural land.