The purchasing the right of the agricultural land use at mergers and acquisitions in agribusiness

Abstract

In the article, the author considers the current state of the market of agricultural land use rights in Ukraine and defines the main factors that influence the slowdown of land market development. Today in fact there is a market of agricultural land use rights, which is developing a limited legal framework, is "gray". This leads to the fact that owners of land may not know who are the actual users of their land. Nevertheless land users trying to act within the legal framework so without violating the law.

In the article, the author leads the main ways of acquiring the right of agricultural land use at mergers and acquisitions in agribusiness. Agreement of mergers and acquisitions in agribusiness have their own characteristics and significantly different from concluding similar agreements in other areas of business. Often, agricultural enterprises, such as agroholdings, are interested in increasing the amount of cultivated agricultural land, so they conclude mergers and acquisitions agreements, acquiring rights to other agricultural enterprises, as well as their real estate, production facilities, agricultural land and rights to it. Mergers and acquisitions in agribusiness is through contracts of sale of land bank or corporate rights or single property complex.

In order to create the conditions for the development of the land market in Ukraine, the author substantiates the necessity of legislative regulation of the possibility of selling the right of agricultural land use. According to the author, the pluralism of the ways of acquiring the right of agricultural land use will enable land users to choose the most appropriate option for consolidation of land and increase the "land bank" by law, also facilitate "out of the shadows" of relations in agricultural land use.