The economic mechanism for the formation of land rent at agricultural enterprises

Abstract

he current stage of land relations in the agrarian sector is characterized by signiicant development of lease relations. Today, these relationships are heavily inluenced by competition for land tenure, leading to increased land payments. Considering this, as well as the prospects for the agricultural land market formation, the task was to assess the dependence of agricultural land rent on the intensity and economic eiciency of wheat, corn for grain, sunlower production. he research was carried out on the example of agricultural enterprises of Kharkiv region. Grouping, a graphical method was chosen as research methods. he subject of the study was also the rent dynamics for agricultural land in Kharkiv region and Iowa, the USA. he obtained results made it possible to establish the fact that the rent value depends on the total amount of expenses, and the expenses on the articles «wages», «depreciation». It is concluded that the reasons for this may be related to the investment of these enterprises in human capital and the ixed assets that make them lease on more favorable terms for share owners. No dependence was found between the rent value on the value of the yield and the inancial result on the selected crops. At the same time, there is a clear tendency that with the increase in the value of the rent, there is an increase in the ratio of its value to the value of costs and income from the crop sector. It is concluded that this can lead to a decrease in investment opportunities for the enterprises with the highest level of lease payments for agricultural land.