Impact of Agricultural Land Concentration on Their Effective Use

The efficiency of land resources use is of the paramount importance for continual development of the agricultural industry of Ukraine. In this context the article has provided the analysis of the key crop yield in Ukraine. The research has been made of the impact the concentration of agricultural lands has on the effectiveness of their use by the Ukrainian agrarian businesses. The author has analytically categorized the Ukrainian agricultural enterprises according to the cropland square. It has been found that the most effective are the enterprises with the croplands of more than 1000 hectares (by labor productivity, land return, profit by 1 hectare of cropland and level of profitability). At the same time in smaller farms (with croplands less than 1000 hectares), where the indicators of efficiency are lower, the processes of revenue growth by extensive factors are limited and thus the owners try to enhance the production process through intensification. It has been resumed that one of the key factors to enhancement agricultural production is the rational concentration of agricultural lands.