Sources for Increasing Profitability in Agricultural Land Ownership for Sustainable Development of Regional Agro-industrial Complexes

Abstract

AbstractScientists did not consider the profitability of agricultural lands in terms of investment attractiveness of land as a specific asset in the agro-industrial complex. In this regard, we can hypothesize that the current situation hinders increasing the attractiveness of the region, even though the agro-industrial complex is highly developed. We aim to determine (1) the economic efficiency of agricultural lands, (2) the prospects for free market land turnover in the region, (3) the costs of managing land turnover, and (4) the profitability of agricultural land for owners in the medium and long term. For a more comprehensive study, we applied a wide range of research methods: (1) analysis, (2) synthesis, (3) analogy, and (4) logical reasoning. As a result, we found that it is impossible to increase agricultural land profitability without taking into account the following factors: (1) agricultural land turnover, (2) development of an effective system of mortgage of agricultural lands, and (3) increasing the freedom of entry and exit of participants from this market. We have systematized the process of agricultural land turnover in the context of sustainable development of the region. The scientist has considered agricultural land turnover without considering the regional aspect. As a result, many economic and institutional problems emerged. We propose to develop relations between land market participants. This will contribute to the development of the region. This is especially important for regions that historically focused on the agricultural economic sector.KeywordsAgro-industrial economic sectorProduction unitsProduction profitabilityLandSpecifics of land ownershipRentIn-kind contributions and monetary paymentsMortgage of agricultural lands