A New Method for Assessing Land Consolidation Urgency, including Market Value

Abstract

Public funding for land consolidation projects is an instrument in the Common Agricultural Policy of the European Union (CAP). The execution of systematic land consolidation programmes focused on optimising the spatial structure of agricultural areas presents the possibility of improving agricultural production conditions and maximising the efficiency of agriculture at the local, regional, national, and international levels. However, due to limited access to financial resources, it is necessary to delimit priority areas for land consolidation. A contemporary practice based on an assessment of the social support percentage of potential land consolidation projects in individual villages does not represent a real necessity for action. This problem leads to the ineffective utilisation of financial resources and reduces the efficiency of the implemented programmes. We propose a new algorithm for assessing the real needs for land consolidation based on a detailed multi-faceted analysis of the spatial structure of agricultural areas. The research method involved factors describing the spatial structure defectiveness of farms, as well as those determining land quality in relation to investment profitability. Another factor verifying the potential economic rationale of land consolidation is transaction prices, which mostly reflect the agricultural value of the land. The analysis showed that land consolidation in areas with defective spatial structures and relatively high market value should be a priority. The study enabled the extraction of five of the 58 analysed villages, characterised by above-average demand for land consolidation and above-average land prices. This approach will contribute to profit maximisation by increasing the productivity of areas with the highest agricultural suitability.