A New Method for Assessing Land Consolidation Urgency, including the Market Value

Public funding of land consolidation projects is an instrument of the Common Agricultural Policy of the European Union (CAP). The execution of systematic land consolidation programmes focused on optimising the spatial structure of agricultural areas presents a possibility to improve agricultural production conditions and maximise the efficiency of agriculture on a local, regional, national and international level. However, due to limited access to financial resources, it is necessary to delimit the priority areas for land consolidation. A contemporary practice based on the assessment of the social support percentage of potential land consolidation projects in individual villages does not represent a real necessity for action. This problem leads to ineffective utilisation of financial resources and reduces the efficiency of the implemented programmes. We proposed a new algorithm for assessing real needs for land consolidation based on a detailed multi-faceted analysis of the spatial structure of agricultural areas. The research method involved factors describing the spatial structure defectiveness of farms as well as those determining land quality in correspondence to investment’s profitability. Another factor verifying the potential economic rationale of land consolidation was transaction prices mostly reflecting the agricultural value of the land. The analysis showed that land consolidation in areas with defective spatial structure and a relatively high market value should be a priority. This approach will contribute to maximising profits by increasing the productivity of areas featuring the highest agricultural suitability.