Baltic Journal of Economic Studies  

50

Vol. 8 No. 4, 2022

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0

1 Sumy National Agrarian University, Ukraine (corresponding author)
E-mail: bohdan.hnatkivskyi@lnu.edu.ua
ORCID: https://orcid.org/0000-0001-5146-9077
2 State Biotechnological University, Ukraine
E-mail: poltavetsanatolii949@gmail.com
ORCID: https://orcid.org/0000-0002-3310-3271
3 Sumy National Agrarian University, Ukraine
ORCID: https://orcid.org/0000-0002-0624-2938

DOI: https://doi.org/10.30525/2256-0742/2022-8-4-50-57

ANALYSIS OF THE CURRENT STATE OF ORGANIZATION  
OF LAND USE MANAGEMENT IN AGRICULTURAL ENTERPRISES

Bohdan Hnatkivskyi1, Anatolii Poltavets2, Olena Havrylchenko3

Abstract. The subject of the research is to study the current state of organization of land use management 
in agricultural enterprises. Methodology. In the course of the study, general scientific methods were used,  
in particular, theoretical generalization; methods of analysis and synthesis and statistical analysis, the method 
of SWOT-analysis of opportunities and threats was applied, and the graphical method was used to visualize the 
results of the study. The aim of the article is to analyze the current state of organization of land use management 
in agricultural enterprises. Conclusions of the study. Thus, having systematized the factors that determine the 
peculiarities of the organization of land management in agricultural enterprises, three groups were identified: 
natural-climatic and geographical, organizational-economic, agrotechnical and agrochemical. Based on the 
SWOT analysis of land resources as an object of management, it is determined that the purpose of land resources 
management of agricultural enterprises is to ensure the efficient use of land as the main factor of agricultural 
production in the long term on the basis of reproduction of productive land and increase the sustainability of 
agricultural landscapes, taking into account the balance of public and private interests. It should be noted  
that all subjects of land relations have the opportunity to minimize the negative consequences caused by 
the manifestation of weaknesses of land resources identified on the basis of SWOT analysis. First of all, such  
opportunities are related to the increase of state support for agriculture and rural development; strengthening  
of state control over the targeted use of agricultural land and its reproduction; improvement of the financial 
condition of agricultural enterprises and intensification of their innovation activities; development of adaptive 
landscape farming systems; appearance on the market of innovations in the form of new breeding-genetic, 
technical-technological and organizational-managerial solutions that ensure the preservation and improvement  
of the consumer qualities of productive lands, as well as the prevention of their degradation.

Key words: land resources, land relations, agricultural enterprises, management of land resources, management 
organization of use.

JEL Classification: E20, H56, O10

1. Introduction
An indispensable condition for the comprehensive 

improvement of agricultural production, based on 
a variety of forms of ownership and management,  
is the effective and rational use of land resources,  
which brings to the fore the formation of land 
relations adequate to the market economy as the 
basis of production relations in agriculture regarding 
the implementation of land ownership. In the course 
of agrarian reforms, the problems of land use have 
become more acute: soil depletion and productivity 
of agricultural land are increasing, farming systems 
and production technologies are being disrupted, 

reclamation and soil protection works have virtually 
ceased. In modern theory and practice of land resources 
management a special role belongs to a group of 
economic methods. Their essence is to determine the 
ways of influencing the material and property interests 
of land use entities aimed at the efficient use and 
preservation of the resource potential of land with the 
use of rent assessment tools, comparison of costs and 
results in the process of stimulating active and more 
productive economic activity.

The application of economic methods of land  
resources management in the agricultural sector of  
the economy has a number of specific features. 



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Vol. 8 No. 4, 2022 
Their purpose is the fastest possible adaptation 
of agricultural producers to qualitatively new  
conditions of management, as well as minimization  
of negative processes that worsen the possibilities of 
land use. Management methods should be adapted 
to regional conditions. The main methods are 
differentiation of land payments depending on the 
quality of land, location, type of use and composition 
of land. In addition, fines are sometimes applied for 
loss of soil fertility, erosion, violation of land and 
environmental legislation. In addition, in the theory  
and practice of land resources management there 
are various methods that differ in approaches and 
specific features of management, the degree of impact 
on the object of management, such as technical, 
technological, political, organizational, managerial, 
socio-psychological, etc.

The research of solving the problems of managing 
the use of land resources of agricultural enterprises  
is devoted to the work of many scientists, but the  
current situation in agriculture requires new ideas, 
assessment of ongoing processes, updating methods 
of economic recovery and its stabilization, improving 
the efficiency of land use. In this regard, a number of 
scientific, theoretical, methodological and practical 
problems need to be solved. Particularly acute are 

the issues of objectively necessary priorities in the 
implementation of measures to manage the use of 
land resources, the principles and conditions for the 
implementation of these measures, the creation of 
a mechanism that will ensure the efficient use of land 
resources, and other organizational issues.

2. Current state of organization of land use 
management in agricultural enterprises

Land relations are a special economic category not 
only because of the specifics of land as an object of 
common interest, but also because of its dual nature, 
that is, it participates in the reproduction process as 
a natural factor and as a commodity. In this regard,  
the aspects characterizing land resources can be divided 
into two groups: technological aspect (effective use 
of the natural potential of land) and socio-economic  
aspect (cost parameters) (Korobska, 2020; Popov, 2018).

When distributing land resources, the first group 
of interests is aimed at the functional and economic 
properties of the land fund: the scale, proportions  
and priorities of its distribution in accordance  
with the level of economic development; types  
of their intended use; intensity of exploitation, 
productivity, as well as environmental conditions.

Table 1
Distribution of the land fund of Ukraine by types of land in 2020 (Agropolit.com, 2020)

Оblast (region)
Agricultural land, 

thousand ha
of them:

arable fallow haymakers pastures perennial plantations
Vinnytsia 2012 1730 1 49 184 48
Volhynia 1048 672 0 162 202 12
Dnipro 2512 2127 0,03 17 314 53

Donetsk 2044 1654 1 43 289 58
Zhytomyr 1504 1144 41 119 178 22

Transcarpathian 451 200 0 94 129 27
Zaporizhzhia 2238 1901 0 83 216 38

Ivano-Frankivsk 621 401 2 82 121 15
Kyiv 1609 1321 13 101 117 57

Kropyvnytskyi 2032 1769 0 23 216 24
Luhansk 1907 1275 45 94 462 30

Lviv 1240 771 0,2 192 251 23
Mykolaiv 2000 1708 4 3 252 34

Odesa 2588 2077 27 51 351 82
Poltava 2167 1817 2 142 183 23
Rivne 922 658 3 126 124 11
Sumy 1695 1235 0,04 273 165 23

Ternopil 1035 851 3 24 145 14
Kharkiv 2361 1937 8 109 286 42
Kherson 1962 1780 0 10 150 23

Khmelnytskyi 1561 1326 0,7 91 105 38
Cherkasy 1450 1272 8 64 78 27

Chernivtsi 470 331 0 41 68 30
Chernihiv 2060 1456 22 297 262 24

Total in Ukraine 41329 32698 190 2294 5263 864



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Vol. 8 No. 4, 2022
The most important type of land resources is 

agricultural land, which serves as the main means 
of production and subject of labor. They are subject 
to special protection and their transfer to other  
categories for non-agricultural needs is allowed  
only in exceptional cases.

The distribution of the land fund of Ukraine by  
types of land is shown in Table 1.

Currently, Ukrainians cultivate about one third 
of arable land in Europe, or 32.7 million hectares. 
Also, according to statistics, there are twice as many 
people per one inhabitant of Ukraine than per one 
European. In the structure of land holdings, the bulk 
of land is privately owned, about 31 million hectares, 
and 10.4 million hectares are in state and communal 
ownership. At the same time, about a third of the  
land, 32.7 million hectares, is under arable 
land. The largest amount of agricultural land is 
cultivated in Odesa, Zaporizhzhia and Kharkiv 
regions – more than 2 200 thousand hectares. The 
least land is owned by residents of Transcarpathian and  
Chernivtsi regions – less than 500 thousand hectares 
(Agropolit.com, 2020).

In Ukraine, land use is subject to payment.  
The purpose of the land payment is to stimulate 
the rational use, protection and restoration of land,  
increase soil fertility, formation of special funds 
to finance these measures, as well as filling local  
budgets.

The forms of payment for land are land tax and rent. 
The introduction of land tax is caused by the need 
to increase the efficiency of agricultural production 
through more rational use of land and other factors.

Local budgets in European countries are mostly 
filled with revenues from the taxation of real 

estate (including land), the share of which reaches  
one third, or even exceeds half of all tax revenues 
of local budgets. In Ukraine, it is relatively low –  
only 13% (including almost 10% of the land  
payment) (Figure 1) (Tsina derzhavy, 2019). 

The cost of land lease depends on the  
demand, the level of competition, the type 
of agricultural land, whether it is arable land,  
hayfields, pastures or perennial plantations, the 
quality of the land, as well as the level of awareness  
of potential buyers.

In the system of payments for land, rent is a  
market indicator to a greater extent than land tax.  
This is logical, since the practice of annual  
adjustment of rent rates for the use of land plots  
allowed most landlords to bring them in line with  
the level of demand for them.

For the state authorities that determine the  
amount of land taxation and other indicators of  
land value (cadastral value, market value), rent can 
serve as an indicator of the market value of land  
plots of different purpose and location in accordance 
with supply and demand. It should be emphasized 
that in foreign economic literature the concepts of  
rent are essentially perceived as identical. Indeed,  
all types of rents are essentially modified forms of  
land rent extraction, and fluctuations in land rent  
rates reflect trends in rent changes.

According to the results of research by scientists of 
the Institute of Agrarian Economics, the highest cost 
of renting one hectare of state-owned agricultural 
land is recorded in Kropyvnytskyi region – 8.4 thou-
sand UAH, and the lowest – 0.9 thousand UAH –  
in Transcarpathian region (Figure 2) (Agropolit.com, 
2019; Agropolit.com, 2020).

 

6

2,1

2,5

77

13

20,4

63,4

51

24

4

9

13

57

65

30

18,8

18,5

44

13,6

41,4

33

10

5,1

44,5

35,6

0 10 20 30 40 50 60 70 80 90 100

Ukraine

Czech Republic

Slovakia

Poland

Hungary

Italy

France

VAT and excise duties рersonal income tax
profit tax real estate tax, including land tax

other taxes

Figure 1. Structure of revenues to local budgets of European countries (in 2020), % (Tsina derzhavy, 2019)



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Vol. 8 No. 4, 2022 

Thus, in Ukraine, the average annual rent for  
state-owned land plots leased at land auctions is 
3431 UAH/ha, while the average annual rent for  
shares is 1613 UAH/ha.

Agricultural production involves the use of both 
productive land (agricultural land) and land on  
which objects related to the activities of agricultural 
entities are located. Ensuring the reproduction 
of productive lands is one of the priority tasks 
in the organization of management of the use of  
agricultural land resources. Reproduction of agricul-
tural land resources is carried out in the process 
of their economic use. Withdrawal of land from  
economic turnover, as a rule, leads to its degradation 
associated with the loss of consumer qualities and 
increased costs necessary for their reintroduction  
into the production process.

The close intertwining of the processes of repro-
duction of agricultural land resources with the  
processes of agricultural production determines 
the dependence of the efficiency of reproduction  
processes on a set of various factors that affect their 
quality in different ways.

It is proposed to systematize the factors that determine 
the peculiarities of land resources management of 
agricultural enterprises by the following groups:  
natural-climatic and geographical, organizational-
economic, agrotechnical and agroche-mical (Table 2). 

The organization of land use management in 
agricultural enterprises is considered as one of the 
functions of the farming system, which includes 
the introduction of crop rotations, soil cultivation, 
application of fertilizers and plant protection  
products, seed production, technological and  
technical support, land reclamation and environ- 
mental protection measures.

Particular attention in the management of land 
resources of agricultural enterprises has recently 
been paid to the systems of adaptive landscape 
farming, which allow to take into account the 
characteristics of each land plot involved in economic 
circulation, and to ensure the growth of agricultural  
landscapes sustainability and preservation of soil 
fertility.

Obviously, these factors have a complex impact  
on the reproduction of land resources, which  
makes it extremely difficult to reliably assess the 
individual level of impact of each of them. To assess  
the efficiency of land resources reproduction, it 
is proposed to use indicators that reflect changes 
in soil fertility, productivity of arable land and 
natural forage lands, the share of land subject to 
wind and water erosion, the proportion of land 
involved in economic turnover, the number of land 
disputes that arise and the effectiveness of their  
resolution, etc.

Kr
op

yv
ny

tsk
yi

Vo
lhy

nia

Figure 2. Average annual rent for state-owned land plots leased out at land auctions  
for the sale of land shares (units) by regions of Ukraine (2020), thousand UAH/ha



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3. Analysis of opportunities and threats  
to the organization of land use management 
in agricultural enterprises

The state, using a wide range of administrative 
and economic management methods, promotes the 
formation of an adequate institutional environment 
of land relations, which regulates the processes of 
land management, including their reproduction.  
The practically uncontrolled growth of land 
concentration in the hands of large agricultural 
enterprises, combined with the growing intensity of 
productive land use, necessitates a review of issues 
related to the organization of land use management 
of agricultural enterprises aimed at ensuring a  
balance of interests of the state, landowners and  
land users of agricultural land.

Land as a strategic resource of agricultural  
production has a number of features that determine  
its strengths and weaknesses as a factor of  
production, and requires an objective assessment  
of the possibilities of improving the efficiency of 
reproductive processes and identifying threats to the 
loss of land reproduction and its degradation.

The development of the national economy is 
impossible without the formation and implemen- 
tation of an effective policy in the field of distribution  
and use of land resources. Formation of strategic 
directions of land use and land ownership is possible  
only with the help of modern research tools. The 
search for tools for strategic analysis of the formation, 
distribution and use of land resources makes it  
possible to assert that a wide range of analytical tools 
can be used to study the development of land relations 
and develop strategic goals for the long term: business 
advantage models, McNair's performance pyramid, 

benchmarking, SWOT analysis, discriminant analysis, 
cluster analysis, PESTEL analysis, etc. (Dankevich, 
2018).

SWOT analysis is one of the most common  
analytical methods that allows to comprehensively 
assess the strengths and weaknesses of the 
company, as well as the opportunities and threats  
affecting it.

Conducting a SWOT analysis is important 
because identifying opportunities and threats 
related to the organization of land management in 
agricultural enterprises should be the basis for turning  
opportunities into strengths and preventing the 
realization of threats by taking appropriate measures  
to prevent them (Table 3).

The strengths of agricultural land as an object 
of land resources management of agricultural  
enterprises are as follows: productive lands have  
natural reproductive potential, which can be  
increased in the process of their rational use in 
economic activity; in Ukraine, soils are characterized 
by a high level of natural fertility; diversity of soils  
and natural climatic zones allows to grow a wide  
range of crops; rural areas of zones with a high level 
of soil and agro-climatic potential are characterized  
by a high level of agricultural development;  
Increasing the efficiency of agricultural production  
has provided an increase in the quality of the material  
and technical base of agricultural enterprises and 
an increase in investment in the reproduction of  
productive land; the tendency to involve previously 
unused agricultural land in economic circulation 
(Sharyi, Tymoshevskyi, Mishchenko, Yurko, 2019; 
Kovaliv, 2016)

At the same time, land resources as a factor of 
production give rise to a number of problems related 

Table 2
Systematization of factors that determine the features  
of the organization of land use management at agricultural enterprises

Natural-climatic and geographical Organizational and economic Agrotechnical and agrochemical

Temperature regime Intensity of use of productive land
Following the scientifically proved 

agricultural system
Topography and threats of wind  

and water erosion
Level of efficiency of land users functioning Land processing technologies

Soil fertility
Level of development of technical  

and technological base of land users
Level of use of fertilizers and plant  

protection products

Moisture supply Level of economic development of territories
Scale and effectiveness of environmental 

protection measures

Level of active solar radiation
Level of development of infrastructure  

and personnel support
Technologies for growing agricultural crops

Type of agricultural landscape
Level of investment attractiveness of 

agricultural production
Level of biologization of agriculture

Location relative to places of processing  
and sale of products

Availability of target programs  
for preserving soil fertility

Improving the productive qualities  
of natural fodder lands

Location relative to transport network 
locations

Quality of state control over land use  
and protection

Level of farming culture



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Vol. 8 No. 4, 2022 

to the organization of land use management in  
agricultural enterprises, which can be defined as 
weaknesses. These include the diversity of soils 
and climatic conditions that require diversification 
of farming systems and constant adaptation of  
agricultural technologies to changing economic 
conditions; the uniqueness of each land plot, which 
requires consideration of specific features in the 
organization of use and reproduction, implementation 
of measures for the conservation and development 
of agricultural landscapes; limited capacities of  
agricultural enterprises to develop and implement 
a strategy for the transition to adaptive landscape  
farming systems; the presence of certain contradictions 
between the ecological and economic efficiency of 
reproductive processes, which require a compromise 
between the possibilities of increasing the intensity 
of land use and increasing the sustainability of agro-
ecosystems by reducing the level of anthropogenic 

pressure; lack of an effective system of state regulation  
of reproduction of productive lands and stimulation 
of land users and landowners to increase their 
fertility; underdevelopment of the land market and 
land mortgage system, which significantly reduces 
the consumer properties of land as an element of the 
subsystem of financial support of economic activity 
(Dankevich, 2018).

It should be emphasized that all subjects of land 
relations have the opportunity to minimize the  
negative consequences caused by the manifestation 
of the above-mentioned shortcomings of land  
resources. First of all, such opportunities are related 
to the increase of state support for agriculture and  
rural development; strengthening of state control  
over the targeted use of agricultural land and its 
reproduction; improvement of the financial condition 
of agricultural enterprises and intensification of 
their innovation activities; development of adaptive 

Table 3
Matrix of SWOT analysis of opportunities and threats  
to the organization of land use management in agricultural enterprises

Strengths Weaknesses 
– productive lands have natural reproductive potential, which can be 
increased in the process of their rational use in economic activity;
– in Ukraine, soils are characterized by a high level of natural fertility;
– the diversity of soils and climatic zones allows to grow a wide range 
of crops;
– rural areas of zones with high soil and agroclimatic potential are 
characterized by a high level of agricultural development;
– increase in the efficiency of agricultural production is ensured 
by the growth of the quality of the material and technical base 
of agricultural enterprises and the increase in investments in the 
reproduction of productive lands;
– the tendency to involve previously unused agricultural land into 
economic circulation

– diversity of soils and climatic conditions that require diversification 
of farming systems and constant adaptation of agricultural 
technologies to changing economic conditions;
– uniqueness of each land plot, which requires consideration 
of specific features in the organization of use and reproduction, 
implementation of measures for the conservation and development 
of agricultural landscapes;
– limited capacity of agricultural enterprises to develop and 
implement a strategy for the transition to adaptive landscape farming 
systems;
– the presence of certain contradictions between the environmental 
and economic efficiency of reproductive processes, which require 
a compromise between the possibilities of increasing the intensity 
of land use and increasing the sustainability of agro-ecosystems by 
reducing the level of anthropogenic pressure;
– lack of an effective system of state regulation of reproduction of 
productive lands and stimulation of land users and landowners to 
increase their fertility;
– underdevelopment of the land market and land mortgage system, 
which significantly reduces the consumer properties of land as an 
element of the subsystem of financial support of economic activity.

Opportunities Threats
– increasing the volume of state support for agriculture and rural 
development;
– strengthening state control over the targeted use of agricultural 
land and its reproduction;
– improving the financial condition of agricultural enterprises and 
intensifying their innovative activities;
– development of adaptive landscape farming systems;
– appearance of innovations in the market in the form of new 
breeding and genetic, technical, technological, organizational and 
managerial solutions that ensure the preservation and improvement 
of consumer qualities of productive lands, as well as prevention of 
their degradation.

– almost uncontrolled concentration of agricultural land in the hands 
of large agricultural enterprises;
– the presence of a significant number of land plots that are not 
registered in the cadastre, which leads to the existence of the shadow 
sector of land use and lack of proper control over the reproduction of 
land resources;
– the possibility of reducing state support for agriculture;
– imbalance between large, medium and small forms of agricultural 
production leads to a decrease in the efficiency of reproduction of 
land resources of farms and households;
– reduction of the rural population and its labor potential



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Vol. 8 No. 4, 2022
landscape farming systems; appearance on the market 
of innovations in the form of new breeding-genetic, 
technical-technological and organizational-managerial 
solutions that ensure the preservation and growth of 
consumer qualities of productive lands, as well as the 
prevention of their degradation.

There are also a number of systemic problems that 
threaten the reproduction of land resources. Among 
them, the following threats should be highlighted: 
almost uncontrolled concentration of agricultural 
land in the hands of large companies; the presence 
of a significant number of land plots not registered in  
the cadastre, which leads to the existence of the shadow 
sector of land use and lack of proper control over 
the reproduction of land resources; the possibility 
of reducing state support for agriculture; imbalance 
between large, medium and small forms of agricultural 
production leads to a decrease in the efficiency 
of reproduction of land resources of farms and  
households; reduction of the rural population 
and its labor potential (Ibatullin, Stepenko,  
Sakal, 2012).

The organization of land use management in 
agricultural enterprises should be focused on the  
fullest use of their strengths and available opportu- 
nities to improve the efficiency of their use, which 
minimize the negative impact of conditions and  
threats that adversely affect the reproduction 
of productive land (Miroshnychenko, 2010; 
Dekhtyarenko, Drapikovskyi, Ivanova, 2009). Most 
scholars study the changes in the impact of governance 
in the context of war and globalization (Pryshchepa, 
Kardash, Yakymchuk, 2020; Irtyshcheva, et etc.,  
2022; Vyshnevska, et al., 2022).

On this basis, the purpose of land use management 
of agricultural enterprises is to ensure the efficient  
use of land as the main factor of agricultural production 
in the long term on the basis of reproduction of 
productive land and increasing the sustainability 
of agricultural landscapes, taking into account the  
balance of public and private interests.

It is proposed to highlight the following as priority 
tasks for the organization of land use management in 
agricultural enterprises:
– Conducting a comprehensive inventory of agri-
cultural land with the definition of real boundaries 
of land plots, their registration in the cadastre and 
delimitation of property rights;
– completion of re-registration of land shares into 
specific forms of ownership of specific land plots;
– formation of land market infrastructure, streng-
thening state control over the level of concentration 
of productive land in individual owners, ensuring 
transparency of all land transactions;
– development of institutional environment for 
regulation of land relations and public control over  
land turnover and efficiency of its use;

– development of a system of motivation of landow- 
ners and land users in preserving soil fertility and 
consumer properties of productive lands;
– identification of land plots that require immediate 
environmental protection measures and minimization 
of anthropogenic load, as well as development of 
measures to improve agricultural landscapes;
– development of a wide range of scientifically based 
modern farming systems, taking into account the  
natural and climatic characteristics of specific territo-
ries and the production direction of economic entities;
– development of recommendations on the location 
of agricultural production by territories and categories 
of economic entities, which ensure the increase of 
efficiency of productive land use.

The implementation of these tasks requires the 
concentration of efforts and resources of all subjects 
of land relations, but it should be noted that certain 
functions of the organization of land use management  
in agricultural enterprises also belong to the compe-
tence of the state, which within the framework of  
land policy determines the strategy of productive  
land use and their reproduction.

4. Conclusions
Thus, having systematized the factors that deter- 

mine the peculiarities of the organization of land 
management in agricultural enterprises, three groups 
were identified: natural-climatic and geographical, 
organizational-economic, agrotechnical and agro-
chemical. Based on the SWOT analysis of land  
resources as an object of management, it is deter- 
mined that the purpose of land resources management 
of agricultural enterprises is to ensure the efficient  
use of land as the main factor of agricultural production  
in the long term on the basis of reproduction of 
productive land and increase the sustainability of 
agricultural landscapes, taking into account the  
balance of public and private interests.

It should be noted that all subjects of land relations 
have opportunities to minimize the negative 
consequences caused by the manifestation of 
weaknesses of land resources identified on the basis 
of SWOT analysis. First of all, these opportunities 
are associated with an increase in state support for 
agriculture and rural development; strengthening of 
state control over the targeted use of agricultural land 
and its reproduction; improvement of the financial 
condition of agricultural enterprises and intensifi- 
cation of their innovative activities; development of 
adaptive landscape farming systems; appearance of 
innovations in the market in the form of new breeding 
and genetic, technical, technological, organizational and 
managerial solutions that ensure the preservation and 
improvement of consumer qualities of productive lands,  
as well as prevention of their degradation.



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Vol. 8 No. 4, 2022 

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Received on: 21th of September, 2022
Accepted on: 27th of October, 2022

Published on: 30th of November, 2022