Land plot as a kind of monetary capital. Land market and cadastral value of agricultural land

The basis for determining payments for the use of agricultural land plot is land rent – the excess value of agricultural products over the average profit. Rent is a "surplus", the taxation of which does not affect the incentives for production. The rent tax does not lead to distortions in the economy and does not reduce its efficiency, unlike destructive taxes on productive capital and labor - a tax system that punishes achieving high results in hard work and entrepreneurship. The amount of tax rate established by the Tax Code of the Russian Federation for land plots classified as agricultural lands for agricultural production - 0.3% of the cadastral value of a land plot - leads to speculative enrichment through the purchase of state land with the subsequent leasing at a rental price ten times higher than the average nominal land fee and the refusal of regional and municipal authorities to provide state and municipal lands for ownership to citizens and legal entities, as authorities prefer to lease these lands. This is how land has become a source of unearned wealth. Social, economic and environmental consequences of this clearly affect the welfare of society. The article presents a simple model for the annual calculation of land rent based on data from commodity producers of the agro-industrial complex on production, expenses, cost price, and profitability of crop products.