EFFECTIVENESS OF TAXATION OF AGRICULTURAL LAND ANA ADMINISTRATION OF ENVIRONMENTAL RENT

Abstract

Assessing the efficiency of agricultural land taxation, including the taxation framework applied to agricultural producers, is essential for effective land management. It is therefore necessary to quantify tax revenues generated from agricultural land and to examine the relationship between these revenues and expenditures on soil protection and restoration. On this basis, a tax administration model should be developed in which the tax base is the normative monetary valuation of agricultural land, adjusted for ecological rent. This study applies the methods of analysis, synthesis, comparison, and logical generalisation to derive conclusions from prior scientific research and from the statistical analysis of taxation of agricultural producers and agricultural land. For an agrarian economy, effective land governance is a strategic priority. Soil degradation, intensive agricultural land use, and adverse military impacts require a revision of existing land-use practices in the agricultural sector. Agricultural land taxation—specifically the land tax, the single tax for fourth-group agricultural producers, and the minimum tax liability—constitutes a significant source of local budget revenues. However, public expenditure on the protection and restoration of agricultural land remains disproportionately low, while the environmental impacts of agricultural production are largely ignored within the existing tax framework. Accordingly, ecological rent generated by agricultural producers through the adoption of resource-efficient agrotechnologies should be explicitly accounted for in the taxation system. Moreover, revenues accumulated from agricultural land taxation should be directed towards the development of sustainable farming systems, particularly through educational and advisory support, assistance for farmers in the transition to green technologies, and the establishment of environmental funds. The administration of ecological rent within agricultural land taxation should serve not only fiscal objectives but also provide strong incentives for the adoption of resource-saving technologies and function as an informational platform for attracting grant funding and green investments to farms demonstrating verified technological efficiency.