2017年-世界发展银行全球_Towards_Improved_Farm_Structures_and_Rural_Land_Market_Functioning___Policy_Options_Based_on_Lessons_from_European_Experience_30页_1mb

Summary of Document: Towards Improved Farm Structures and Rural Land Market Functioning

Core Content

This document outlines policy options to improve farm structures and rural land market functioning in Armenia, drawing on lessons from European experiences. It highlights the challenges posed by small, fragmented farms and the inefficiencies in land markets, emphasizing the need for a comprehensive legal and policy framework.

Main Points

• Land Ownership and Distribution:

  • About 73% of arable land in Armenia is privately owned.
  • Over half of the total agricultural land is pasture, mostly in community or state ownership.
  • Approximately 42,000 hectares are used for plantations, mostly private.
  • Around 65,000 hectares of arable land are leased, with most lease agreements informal and short-term.

• Farm Size and Structure:

  • In 1993, 340,000 family farms existed, each averaging 1.2 to 1.4 hectares, fragmented into 2–3 parcels.
  • In 2014, the average farm size was 1.48 hectares, with 89% of farms below 3 hectares.
  • Fragmentation remains high, with almost half of the holdings having three or more plots.

• Land Market Functioning:

  • Annual land mobility is around 1.6%, considered low compared to Western Europe.
  • The lease market is underdeveloped, with many informal arrangements that hinder investment security.
  • The current land market lacks mechanisms to stimulate mobility, such as land banking, retirement schemes, or tax exemptions.

• Land Consolidation:

  • Armenia has limited experience with land consolidation.
  • A pilot project in Nor Erznka (2004–2006) improved parcel and holding sizes, but no national strategy or legal framework has been established.
  • Land consolidation should be combined with irrigation restructuring to improve efficiency.

• Irrigation Infrastructure:

  • Irrigation is a key factor in agricultural productivity.
  • The irrigated area has declined from over 300,000 hectares in 1985 to about 176,000 hectares around 2005.
  • The World Bank's Irrigation System Enhancement Project (2013) aimed to improve efficiency and data availability.
  • A new project with support from the Eurasian Development Bank is planned to convert irrigation systems and rehabilitate canals.

• Public Infrastructure and Land Use:

  • Land structure and public infrastructure are closely linked.
  • Western Europe’s success in reducing fragmentation is often attributed to combining land consolidation with infrastructure development.
  • In Armenia, the lack of modern irrigation systems and poor maintenance contribute to land abandonment and inefficiency.

• Challenges and Constraints:

  • Land fragmentation hampers technological development and modernization.
  • Farmers lack financial liquidity and land is not accepted as collateral.
  • Cadastre and land registration systems are outdated.
  • There is a lack of awareness and capacity at the local level to manage land issues effectively.

Key Policy Recommendations

1. Comprehensive Legal and Policy Framework:

   • Develop a legal framework that supports land consolidation and land banking.
   • Introduce or amend policies related to land, irrigation, and taxation to improve market efficiency.

2. Land Consolidation Programs:

   • Implement voluntary and majority-based land consolidation to reduce fragmentation.
   • Combine land consolidation with irrigation restructuring to enhance productivity.

3. Land Lease Market Development:

   • Regulate and formalize the lease market to improve tenure security.
   • Introduce mechanisms like automatic right of renewal, dispute resolution, and succession rights.

4. Improved Management of Community Land Funds:

   • Review the role of community land in supporting farm development.
   • Ensure better management and transparency in the leasing of community land.

5. Review of Pre-emption Rights:

   • Consider granting pre-emption rights to leaseholders, relatives, and neighboring farms.
   • These rights can support land consolidation and retirement schemes.

6. Land Taxation and Registration Costs:

   • Assess the impact of land transaction and use taxes on market activity.
   • Reduce registration costs and improve the transparency of land taxation.

7. Integration of Equity and Inclusiveness:

   • Ensure that policy instruments support women and young entrepreneurs in accessing land and securing tenure rights.

Framework for Intervention

• Awareness Raising and Promotion:

  • Educate policy makers and stakeholders on the importance of land structure for rural development.

• Phases of Introduction:

  • Implement pilot projects to test land consolidation and lease market reforms.
  • Gradually scale up successful initiatives.

• Capacity Building and Donor Support:

  • Strengthen institutional capacity at the local level.
  • Seek donor support to finance land consolidation and market development initiatives.

Summary of Recommendations

• Establish a comprehensive legal and policy framework to support land market reforms.
• Promote land consolidation programs, especially in conjunction with irrigation improvements.
• Formalize and regulate the lease market to enhance tenure security.
• Improve the management and transparency of community land.
• Introduce pre-emption rights to support land consolidation and equitable land access.
• Review land taxation and registration costs to reduce barriers to land mobility.
• Ensure inclusiveness in policy design, particularly for women and young entrepreneurs.

This report emphasizes that without coordinated policy efforts and a suitable legal framework, the current fragmented land structure and weak land market in Armenia will continue to hinder agricultural development and productivity.