Article gives examples of various options of the legal relations which are taking place in the market of a ground lease in the countries with developed market economy.
In the countries with the developed market economy the dominating part of agricultural holdings is in a turn in the ground lease market. Such situation is characteristic both for the USA, and for countries of Western Europe. Advantage of rent first of all is caused by absence in farmers of sufficient amount of money for a land acquisition in a property, and possibility it is more rational to use the capital for production modernization.
Different ways of relationship practise in developed countries between owners and tenants: rent on the basis of labor participation; for needs of animal husbandry; on the basis of share participation in crop cultivation; on the basis of participation in a net profit; by a principle of the fixed payments.
Rent on the basis of labor participation is characterized by that the parties work at the rights of colleagues. The profit is distributed in proportion to labor investments of each of the parties. The owner is released from daily work on a farm, but carries out control of its production activity. The tenant puts in production only work and takes participation in management.
The ground lease for needs of animal husbandry is based on partnership of the parties at which profit and investments of each of partners are distributed in proportion. For this type of rent the ratio of the capitals, a livestock of animals, forages, the equipment, costs of seeds etc. as 1:1 is standard. For the owner this type of rent – the most profitable, especially, if the tenant is the highly skilled expert.
Rent on the basis of share participation in a crop is most widespread in the countries with a high price level on the earth. The parties distribute among themselves both profit, and expenses. Under such circumstances the risk is distributed, and the revenue of each of the parties depends on market and production conditions. The owner receives a part of a grain yield (from 1/3 to 1/2 depending on quality of the earth) and a payment for use by the tenant farmer and pastures.
Rent on the basis of share participation in a net profit has lines, both the fixed payment, and a rent on the basis of share participation in a crop. Level of payments isn’t fixed and is dependent on the received crop. The owner receives a money equivalent of the annual participation in the grown-up crop. It doesn’t work at a farm, and transfers in rent the earth, the equipment, cars.
Rent on the basis of the fixed payment most reminds a lease term widespread in Ukraine. Under such contracts the tenant assumes all risks of managing, and the owner of land gets the guaranteed profit. In the USA the owner of land can demand 20-30 % of a crop. In Japan the limit of a rent establishes the state. For irrigated lands – it is no more than 20 %, and for not irrigated – it is no more than 15 % of cost of the received crop.
Definition of a lease term has essential value for development of the rent ground relations. In Ukraine the short-term lease within 5 years prevails. From a position of the owner which waits for the best conditions of a rent, such terms are justified. But from the point of view of the organization of stable production, the short-term lease is a barrier to capital investments in long-term improvement of the earth.
In countries of Western Europe on the contrary: nearly 90 % of contracts are made for the term of over 9 years, i.e. a full cycle of a crop rotation. In China an average lease term – 30-50 years, and at virgin soil development – 50-70 years, with possibility of a concession of the right of rent to the third party. In rent is to 95 % of processed lands.
The rent is key aspect of the rent relations. In agricultural industry of developed countries it identify with a rent. The analysis shows that in Sweden it makes 5-8 % of cost of the earth or 7-9 % from cost of production realized by the farmer. In Great Britain – 2,3 % from market price of the earth. In the USA a rent pay at level from 0,6 to 10,5 % for arable lands, and from 0,9 to 10,9 for pastures, depending on their market cost. The size of a rent in Denmark estimate proceeding from the price 1c wheat or barley in the world market. Depending on quality of grounds the owner can receive from 16 to 20 % of cost of an expected crop of the specified cultures.
In Canada 40-45 % of the grown-up crop are spent for payment of rent. Characteristic feature of development of the rent relations is the active role of the state lessor. It is connected with activity of the Ground bank which main task is purchase and transfer of lands to a long-term lease and improvement of mechanisms of transfer to their following generations of farmer families. In France the lease contract is made by the special advisory commission appointed by the prefect. A rent calculate depending on the region, proceeding from the maximum and minimum volume of production of four main cultures. As a whole in the countries of European Union under lease process more than 40 % of agricultural holdings. The rent for 1 hectare on the average makes 8 c of wheat or its market cost in the current year.
For development of rent public policy in the sphere of the ground relations has importance. As purchase of land because of its high price is inaccessible to the majority of young farmers, the state strategy of the western countries is directed on development of a long-term lease and a guarantee of the rights of the parties. For example, in the Czech Republic for the purpose of stabilization of land use and support of tenants such measures are used: the long-term lease contract of the earth with the difficult mechanism of its early cancellation; the conclusion of lease contracts not with the specific user, and with their association. It is thus forbidden to sell the land to foreigners, and to change its designated purpose.
Experience of developed countries testifies that public policy in the sphere of agricultural industry and the ground relations should be directed on stimulation of process of concentration and integration of agricultural production with association of an industrial, trading and banking capital, implementation of programs of social protection of the population, protection of lands and environment, development of rural territories.
The prospect of development of the rent ground relations in Ukraine lies in introduction of model of an average and long-term lease with possibility of further renewal of contracts. Under condition of cancellation of the moratorium and purchase introduction – sales of land use of a scale of motives and restrictions on their resale will be expedient.
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