THE IMPACT OF ECONOMIC REGULATORS ON THE EFFICIENCY OF MANAGEMENT OF LAND USE IN TERRITORIAL COMMUNITIES

Abstract

The article analyses the current methodology of conducting a normative monetary valuation of agricultural land, examines the possibility of using it as a land management tool. It is established that the updating of the technical documentation on the normative monetary valuation of land occurs without meeting the deadline stipulated by law. Instead, we suggested to automatically and continuously calculate the normative monetary valuation of land, to update it according to the current situation. It is established that the current methodology for calculating the normative capitalized rental income is defined as the average value of the ratio of rental income to the NBU discount rate for the last years preceding the year of the normative monetary valuation of land. It is determined that, unlike the previous methodology, the current one is only indirectly related to the prices of agricultural products and therefore the profitability of agricultural production, especially in real time. Scenarios for the potential impact of these indicators on the normative monetary valuation, if they are simultaneously considered in the methodology of calculating the normative capitalized rental income, are developed. The land tax rates, and rental rates of communal property land can be set by local self-government bodies. Their possible values have been calculated and it is determined that the rental rates and the cost of renting communal-owned agricultural land can be a land use management tool. It is established that the use of these tools will contribute to the implementation of the strategy of development of territorial communities.