AGRICULTURAL LAND MARKET AS A TOOL FOR ATTRACTING INVESTMENT

Abstract

Reforming the modern system of land relations is based on the formation of the land market and the simultaneous establishment of its real owner, who must exercise all property rights, including the right to buy and sell agricultural land. The absence of market turnover of agricultural land narrows the possibility of attracting additional financial resources to the agrarian economy that provides mortgage lending. Topical issues today are improving the legal framework and increasing the competitiveness of the agricultural land market, which is possible under the conditions of improving the investment climate; improving the legislative framework; proper preparation for the sale of agricultural land, investment programs and projects, development and implementation of modern investment instruments. The most difficult problem of agrarian reform in Ukraine is the agricultural land market. European Union public opinion and experience substantiate of the land market forming  feasibility. The main arguments of the proponents of the land market are based on the need to attract investment and create investment attractiveness. The article analyzes the realities and prospects of buying and selling agricultural land in the context of institutional changes, which is a necessary link for economic transformation.  The expediency of reforming land relations by means of schematic influence model of endogenous and exogenous factors on the agricultural land market as an economic process is substantiated. The disadvantages of agricultural land parceling are identified, which significantly impedes the attraction of investments in agriculture and narrows the opportunities to attract additional financial resources to the agrarian economy, which provides mortgage lending. The introduction of the moratorium abolition on purchase and sale of agricultural land in context of intensifying possibilities of developing agricultural mortgages as an institutionally regulated instrument for the agricultural reform implementation in terms of land saling by taking into account the experience of European countries.