Design of land and mortgage lending system at regional level

One of the regions of the Russian Federation, which have successfully introduced new methods of management, is Oryol Region. Despite its relatively small size, Oryol Region, along with Saratov and Volgograd Regions, is one of the leading places in the regions by agricultural land per capita of the European part of Russia (Central, Central Black Earth Region, Volga-Vyatka, Povolzhsk economic regions, including Ingushetia, Rostov Oblast, Stavropol Krai and Krasnodar Krai). This fact together with favourable weather and climatic conditions determine the total agro-industrial orientation of the development of the national economy. More than 70% of the area is used by agricultural organizations and by farmers' households, 35.6% of the population of the region lives in rural areas. 341 agricultural organizations, 1280 farms and about 150 thousand personal household plots were engaged in agricultural activities in 2011. An essential condition and base for effective agricultural production is increased investment in technical and technological modernization of production. However, in recent years due to low profitability of capital in agricultural production, high risk, volatile pricing situation investment in agriculture is declining. Increase of investment attractiveness of agriculture and revitalization of the private sector in agricultural production is possible by the development of land and mortgage lending. In the article the algorithm of implementation of a regional system of land and mortgage lending is given. The feature of development of land relations in Oryol Region is the existence of a land investment company. JSC "Oryol Investment Land Company'' acts as an operator on the market of land in the area and has provided economic and legal services in the sphere of land relations, including in agriculture. The company takes part in the relationship with local and federal authorities, investors and owners, respecting their mutual interests. Effective use of loans secured by land is the basis of the proposed methodological approach to the system of land and mortgage crediting of agricultural enterprises, the influence of credit funds on increase of production efficiency, the relationship of land and mortgage loan with the final results of agricultural production in general and in certain enterprises. Efficiency of use of credit under pledge of land lies in the degree of their impact on the development of agricultural production and growth of gross output.

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