LAND RENT AS AN ECONOMIC PATHOLOGY

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Николай Иванович Бухтояров Исаак Бениаминович Загайтов

Abstract

The paper presents theoretical underpinning of land rent as an economic pathology, as well as of the fact that rent seeking acts as a brake on social reproduction, since, firstly, land rental payment in any form raises the costs of the producer of agricultural products and consequently reduces their competitiveness in agri-food markets; secondly, for reasons of payments economy agricultural producers tend to increase land use intensity of either leased or purchased land, and, thus, turning rent into a factor of technologically excessive intensification; thirdly, land income in some cases becomes a brake on the intensification of agricultural production; fourthly, land rental payment limits the financial capabilities of many agricultural producers, especially small ones, and, as a result, limits the demand in land rental market; fifthly, rental relations significantly complicate agricultural crises bailout of the economy; sixthly, rental relations can repress rational formation of the fund of cultivated land due to the existence of lands of relatively better quality; seventhly, rent appropriated by the private land owner is only partially and is not always is used for production purposes.

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