ASSESSMENT OF THE MARKET VALUE OF AGRICULTURAL LAND

Abstract

The issues of assessing the market value of agricultural land are considered. The purpose of the study is to analyze the specifics of determining the market value of agricultural land, and the factors affecting their value. Materials and methods. The study used approaches to assessing the market value of agricultural land, the regulatory framework governing the process of determining the market value, as well as the principles that guide the appraiser in determining the value of the object. Study results. The analysis of approaches and methods used in assessing the market value of agricultural land has shown that existing methods do not fully take into account the specifics of the assessed object in terms of determining the risks, which may eventually affect the market value. The market value of an agricultural land plot is influenced to a greater extent by natural factors, on which the efficiency of agricultural production depends, which should be taken into account when determining its value by a profitable approach. The Order of the Ministry of Property of the Russian Federation dated March 6, 2002 № 568-r (as amended on July 31, 2002) "On Approval of Methodological Recommendations for Determining the Market Value of Land Plots" contains instructions on determining the capitalization rate for the method of land rent capitalization and the method of intended use, in which calculation is reduced to doubling the risk-free income rate. As a result, it can be said that natural factors are not taken into account when calculating the market value of agricultural land plots. Based on the analysis, the factors determining the market value of agricultural land plots have been identified, which include the location of the site, its distance from the city, terrain and landscape, availability of communications (gas, water, electricity), the category of the land plot and the ways of its possible use, access roads, etc. Based on the correlation method, the main price-forming factors were determined. These include: the distance to the city (remoteness of the plot), the size of the plot, availability of communications. Conclusions. In addition to the general price-forming factors affecting the market value of agricultural land, natural ones can also be distinguished, on which the efficiency of agricultural production depends, which is used within the framework of a profitable approach.