LAND RENT AND RENT RELATIONS: THE EVOLUTION OF VIEWS AND MODERN CONTENT

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Yevhenii KYRYLIUK
Ivan KUKURUDZA

Abstract

Introduction. The processes of transformation of the national economic system are accompanied by the aggravation of a number of problems. One of the most important is the problem of efficient use of land resources. The possibility of its solution is determined primarily by the level of organization and functioning of land-rent relations. Currently, rent, which is formed through the use of land and its resources, is considered only as a certain monetary income. There is no awareness that it is one of the most important material factors of expanded reproduction.

The purpose of the scientific article is to systematize views on the essence of land rent and rent relations, to clarify the place of land rent in modern concepts of rent relations and to substantiate its role in the process of social reproduction.

Results. The article substantiates the main provisions of modern concepts of rent relations and clarifies the place of land rent in their problems. The evolution of views on the interpretation of the essence of land rent and rent relations is revealed. The nature of land rent, preconditions of its origin and distribution, role in the process of social reproduction are determined.

In modern conditions it is necessary to form a systematic vision of different types and subspecies of the general phenomenon of economic rent. It is also necessary to allocate land rent as an economic form of land ownership. Based on the modern interpretation of the general phenomenon of rent, it is advisable to show the place of land rent in the reproduction process. In comparison with wages, interest, income, land rent is the most controversial type of income in terms of its withdrawal and distribution. Land rent has features that distinguish it from other types of income. To determine land rent, its separation from economic rent, it is necessary to identify the distinctive features of land that are not inherent in other resources. They turn land rent into a special kind of income, not identical to wages, interest, profits, as well as royalties and other rental income. Distinctive features of the earth and other resources which make a single whole with the earth, are: 1) an origin not from human activity; 2) non-reproducibility (impossible to reproduce artificially); 3) quantitative limitations; 4) the ability not to wear out physically and not to grow old morally; 5) physical immobility (immobility); 6) the product of the earth can be formed both as a result of human activity and independently of it; 7) land is widely used in non-agricultural production as an area for mining, construction, placement of transport communications, etc .; 8) land is able to form or increase the amount of product without additional labor and therefore is able to provide as a surplus income natural rent (in physical terms); 9) the product of the land almost always needs further cultivation or leaves room for it - it always has the potential to create value added on its basis; 10) land by its nature has conditions for the social nature of ownership.

Originality. The conceptual apparatus of rent relations is specified. It is proved that the concept of "rent payments", which is widely used, can not fully reflect the economic relations in the agro-industrial complex. The concepts of "rent withdrawals" or "rent redistribution" can be considered more adequate. This is due to the fact that withdrawals are made not only through the taxation mechanism. They are often carried out indirectly - through various market mechanisms.

Conclusions. Land and its resources are gradually involved in the process of social reproduction, but the speed of such involvement has recently increased. The value of the product of land and land rent in the cost system increases to the same extent. Due to rent withdrawals and rent redistribution in the economic system are created favorable for production and consumption value ratios. Land rent in value terms can serve as a stabilizer. It can be removed where it is redundant and sent to where there is a distortion of exchange rates. Distortion of the foundations of rent relations does not allow to perform an important function of rent - to ensure rational relationships between agriculture and other areas of social production.

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