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Valuation Approach for Assessing Efficiency of Agricultural Land Use
Corresponding Author(s) : Małgorzata Buśko
Geomatics and Environmental Engineering,
Vol. 19 No. 1 (2025): Geomatics and Environmental Engineering
Abstract
This article is devoted to studying the peculiarities of applying the valuation approach toward assessing the efficiency of agricultural land use. In particular, it was determined that the main link of the valuation approach was the value of the land use. Value is the basis of quantitative correlation under the equivalent exchange; the value of land use can be determined by applying three common approaches: comparison, cost, and income. The authors of the research present a methodology for assessing the value of the right to manage agricultural land use and its efficiency. The work supplies the calculated book value of land use under the actual status of agricultural lands in Ukraine according to the average indicators (in the present research, this was the period of 2017–2021) and the economic market value of land use while considering innovative investments in land improvement that are focused on establishing the more effective use of agricultural lands. It is stated that the valuation approach toward assessing the efficiency of agricultural land use can be used to specify the value of the right to manage land use in the amount of its general value as well as assess its efficiency. The suggested algorithm and statistical indicators were used to calculate the right and efficiency of agricultural land use management for all categories of farms and, particularly, in terms of agricultural enterprises of the different forms of economic activity.
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- Ostaphuk T., Orlova K., Biriuchenko S., Dankevych A., Marchuk G.: Defuzzification in the process of managerial estimating the value of agricultural lands. Agricultural and Resource Economics-International Scientific E-Journal, vol. 7(4), 2021, pp. 62–81. https://doi.org/10.51599/are.2021.07.04.04.
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- Copeland T., Koller T., Murrin J.: Valuation: Measuring and Managing the Value of Companies. 3rd ed., McKinsey & Company, New York 2000.
- Kovalyshyn O., Pendzey L., Tretiak N., Kulikovska O., Kangalov P., Shchur T., Kocira S.: Methodic approach to assessment of the types of balanced land use of rural areas. Agricultural Engineering, vol. 26(1), 2022, pp. 215–229. https://doi.org/10.2478/AGRICENG-2022-0017.
- Taratula R., Kovalyshyn O., Ryzhok Z., Malakhova S.: Application of mathematical modeling for optimization of land-use management. Real Estate Management and Valuation, vol. 27(3), 2019, pp. 59–68. https://doi.org/10.2478/remav-2019-0025.
- Tretiak N., Sakal O., Kovalenko A., Vrublevska O., Volska A., Shtohryn H., Behal I.: Institutional environment of the land resources and land use management in Ukraine: Problems of coordination of the institutional structure, functions and authorities. Economic Studies, vol. 31(5), 2022, pp. 163–178.
- Tretiak А., Kovalyshyn О., Tretiak N.: Assessment of the effectivennes of land use according to public land interests as a component of rural development. Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development”, vol. 19(4), 2019, pp. 345–350.
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References
Ostaphuk T., Orlova K., Biriuchenko S., Dankevych A., Marchuk G.: Defuzzification in the process of managerial estimating the value of agricultural lands. Agricultural and Resource Economics-International Scientific E-Journal, vol. 7(4), 2021, pp. 62–81. https://doi.org/10.51599/are.2021.07.04.04.
Ivashkovskaya I.V., Kukina E.B., Penkina I.V.: Economic value added. Concepts. Approaches. Instruments. Journal of Corporate Finance Research, vol. 2(14), 2010, pp. 103–108. https://doi.org/10.17323/j.jcfr.2073-0438.4.2.2010.103-108.
Hnatkivskyi B., Poltavets A., Volyk S.: Economic efficiency in the use of land resources by agricultural enterprises in the context of global development. Baltic Journal of Economic Studies, vol. 8(5), 2022, pp. 92–100. https://doi.org/10.30525/2256-0742/2022-8-5-92-100.
Zhang Z.H., Ghazali S., Miceikienė A., Zejak D., Choobchian S., Pietrzykowski M., Azadi H.: Socio-economic impacts of agricultural land conversion: A meta-analysis. Land Use Policy, vol. 132, 2023, 106831. https://doi.org/10.1016/j.landusepol.2023.106831.
Copeland T., Koller T., Murrin J.: Valuation: Measuring and Managing the Value of Companies. 3rd ed., McKinsey & Company, New York 2000.
Kovalyshyn O., Pendzey L., Tretiak N., Kulikovska O., Kangalov P., Shchur T., Kocira S.: Methodic approach to assessment of the types of balanced land use of rural areas. Agricultural Engineering, vol. 26(1), 2022, pp. 215–229. https://doi.org/10.2478/AGRICENG-2022-0017.
Taratula R., Kovalyshyn O., Ryzhok Z., Malakhova S.: Application of mathematical modeling for optimization of land-use management. Real Estate Management and Valuation, vol. 27(3), 2019, pp. 59–68. https://doi.org/10.2478/remav-2019-0025.
Tretiak N., Sakal O., Kovalenko A., Vrublevska O., Volska A., Shtohryn H., Behal I.: Institutional environment of the land resources and land use management in Ukraine: Problems of coordination of the institutional structure, functions and authorities. Economic Studies, vol. 31(5), 2022, pp. 163–178.
Tretiak А., Kovalyshyn О., Tretiak N.: Assessment of the effectivennes of land use according to public land interests as a component of rural development. Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development”, vol. 19(4), 2019, pp. 345–350.
Abrameshin A.Ye., Aksenov S.N., Voronina T.P., Kornyukhin S.V., Molchanova O.P., Tikhonov A.N., Ushakov M.A.: Menedzhment innovatsionnoy organizatsii: Uchebnoye posobiye. Yevropeyskiy Tsentr po Kachestvu, Moskva 2003 [Абрамешин А.Е., Аксенов С.Н., Воронина Т.П., Корнюхин С.В., Молчанова О.П., Тихонов А.Н., Ушаков М.А.: Менеджмент инновационной организации: Учебное пособие. Европейский Центр по Качеству, Москва 2003].
Bocharov V.V., Samonova I.N., Makarova V.A.: Upravleniye stoimost’yu biznesa: Uchebnoye posobiye. Izdatel’stvo Sankt-Peterburgskogo Gosudarstvennogo Universiteta, Sankt-Peterburg 2009 [Бочаров В.В., Самонова И.Н., Макарова В.А.: Управление стоимостью бизнеса: Учебное пособие. Издательство Санкт-Петербургского Государственного Университета, СанктПетербург 2009].
Cheremnykh O.S., Cheremnykh S.V.: Strategicheskiy korporativnyy reinzhiniring: protsessno-stoimostnoy podkhod k upravleniyu biznesom. Finansy i Statistika, Moskva [Черемных О.С., Черемных С.В.: Стратегический корпоративный реинжиниринг: процессно-стоимостной подход к управлению бизнесом. Финансы и Статистика, Москва 2005].
Chernozub O.: Zhizn’ posle krizisa: stoimostnoy podkhod k upravleniyu chastnoy kompaniyey. Al’pina Pablisher, Moskva 2009 [Чернозуб О.: Жизнь после кризиса: Стоимостной подход к управлению частной компанией. Альпина Паблишер, Москва 2009].
Tretyak A.M.: Zemelʹnyy kapital: teoretyko-metodolohichni osnovy funktsionuvannya: monohrafiya. Spolom, L’viv 2011 [Третяк А.М.: Земельний капітал: теоретико-методологічні основи функціонування: монографія. Сполом, Львів 2011].
Wang K., Lu J., Liu H., Fan X., Zhang L., Zhang S.: A study on accounting for suburban agricultural land rent in a Chinese context based on agricultural ecological value and landscape value. Land, vol. 12(12), 2023, 2138. https://doi.org/10.3390/land12122138.
Melstrom R.T.: The effect of land use restrictions protecting endangered species on agricultural land values. American Journal of Agricultural Economics, vol. 103(1), 2021, pp. 162–184. https://doi.org/10.1111/ajae.12127.
Hudecová L., Kysel’ P.: Legislative protection of agricultural land. Land Use Policy, vol. 131, 2023, 106719. https://doi.org/10.1016/j.landusepol.2023.106719.
Fei R., Lin ZY., Chunga J.: How land transfer affects agricultural land use efficiency: Evidence from China’s agricultural sector. Land Use Policy, 103, 2021, 105300. https://doi.org/10.1016/j.landusepol.2021.105300.
Rasva M., Jürgenson E.: Agricultural land concentration in Estonia and its containment possibilities. Land, vol. 11(12), 2022, 2270. https://doi.org/10.3390/land11122270.
Korkusuz S.T.: Mirasa Konu Tarımsal Arazilerde Gelir Esaslı Değerin Yarattığı Sorunlar [Problems with the income value basis in agricultural lands subject to inheritance]. İstanbul Hukuk Mecmuası, vol. 81(4), 2023, pp. 911–941. https://doi.org/10.26650/mecmua.2023.81.4.0003.
Miluț M., Stan I., Călina J., Călina A., Croitoru A., Medelete D., Bădescu G., Ionică C.: Observations regarding the evolution of the agricultural land fund in Romania on categories of use after 1990. Scientific Papers. Series A. Agronomy, vol. 63(1), 2020, pp. 92–97.
Yelkin S.E., Yelkina O.S.: Osobennosti primeneniya stoimostnoy politiki k ekonomicheskoy effektivnosti. Teoreticheskaya Ekonomika [Елкин С.Е., Елкина О.С.: Особенности применения стоимостного подхода к оценке экономической эффективности. Теоретическая Экономика], no. 1(43), pp. 107–114. https://theoreticaleconomy.ru/en/nauka/article/76611/view.
Kozlovskaya Ye.A., Demidenko D.S., Yakovleva Ye.A., Gadzhiyev M.M.: Stoykostnoy podkhod k upravleniyu innovatsionnym protsessom na predpriyatii: uchebnik. Izdatel’stvo Sankt-Peterburgskogo Gosudarstvennogo Universiteta, Sankt-Peterburg 2010 [Козловская Е.А., Демиденко Д.С., Яковлева Е.А., Гаджиев М.М.: Стойкостной подход к управлению инновационным процессом на предприятии: учебник. Издательство Санкт-Петербургского Государственного Университета, Санкт-Петербург 2010].
Verkhovna Rada of Ukraine: Order of the Ministry of Finance of Ukraine, Fundamentals (standard) of Accounting 7 Fixed assets. 27.04.2000. http:// zakon4.rada.gov.ua/laws/show/z0288-00 [access: 1.09.2023].
Verkhovna Rada of Ukraine: Order of the Ministry of Finance of Ukraine, Fundamentals (standard) of Accounting 8 Intangible assets. 18.10.1999. http://zakon2.rada.gov.ua/laws/show/z0750-99 [access: 1.09.2023].
Verkhovna Rada of Ukraine: International Standard of Accounting 16 Fixed assets. 1.01.2012. https://zakon.rada.gov.ua/laws/show/929_014#Text [access: 3.09.2023].
Verkhovna Rada of Ukraine: International Standard of Accounting 38 Intangible assets. 1.01.2012. https://zakon.rada.gov.ua/laws/show/929_050 [access: 3.09.2023].
Kurowska K., Adamska-Kmieć D., Kowalczyk C., Leń P.: Communication value of urban space in the urban planning process on the example of a Polish city. Cities, vol. 116, 2021, 103282. https://doi.org/10.1016/j.cities.2021.103282.
Verkhovna Rada of Ukraine: National Standard No. 1 General principles of valuation of property and property rights. 10.09.2003. https://zakon.rada.gov.ua/laws/show/1440-2003-%D0%BF#Text [access: 7.09.2023]
State Statistics Service of Ukraine home page. https://www.ukrstat.gov.ua/ [access: 5.10.2023].
Main Statistical Office in Lviv Region home page. https://www.lv.ukrstat.gov.ua/ [access: 5.10.2023].
State Service of Ukraine for Geodesy, Cartography and Cadastre home page. https://land.gov.ua/ [access: 5.10.2023].