Historical and legal aspects of compensation for losses of agricultural production

The relevance of the topic is stipulated by the need to study the historical and legal aspects of the institute of compensation for losses of agricultural production which was proposed in Soviet times and concerned agricultural land. The introduction of this institute was aimed at increasing agricultural production by involving as much of the State’s land fund as possible. This approach necessitated the inclusion in Soviet legislation of a certain range of provisions that, on the one hand, ensured the preferential allocation of land plots for agricultural use, and, on the other hand, established legal restrictions and obstacles to reducing the area of agricultural land used for non-agricultural purposes. This approach was implemented at the subordinate level by adopting a number of union and republican resolutions. Subsequently, Article 46 of the Land Code of the Ukrainian SSR (1970) enshrined the relevant legislative provisions, which not only regulated relations on compensation for losses, but also laid the foundation for the priority of agricultural land, which allowed for the preservation of agricultural land. The next stage in the regulation of relations regarding compensation for losses of agricultural production is associated with the adoption of the Land Code of the Ukrainian SSR of 1990, which, along with compensation for losses of agricultural production, additionally regulated compensation for losses of forestry production, expanded the list of grounds for compensation for losses, and also provided that the funds received as compensation for losses shall be used exclusively for the development of new lands, improvement of soil fertility and productivity of forest lands, and improvement of the forestry fund. It is emphasized that the current Land Code of Ukraine (2001) has regulated in detail and systematically the relations arising from the compensation of losses of agricultural production. The procedure for compensation for such losses provides for compensation to society for the negative socio-economic and environmental consequences arising from the transfer of agricultural land to other categories. However, recent legislative activity in this area has demonstrated a gradual depreciation of agricultural land as an object of special protection. In particular, the provision on compensation for losses of agricultural production was removed from Chapter 36 of the Land Code of Ukraine, which means that the change of the designated purpose of agricultural land is carried out without compensation for losses of agricultural production, etc. This indicates, at least, that the institution of compensation for losses of agricultural production has achieved the goal set when it was introduced, and that it has expanded opportunities for attracting investments with a view to rapidly rebuilding Ukraine.