Cadastral valuation of lands dedicated to perennial plantings: features and practice

. The article considers the issue of cadastral valuation of agricultural lands used for perennial plantations (orchards). Unlike other agricultural crops, orchard crops occupy the land for a long period of time, therefore, the planting expenditures are capital. The purpose of the study is to define the features and adapt the existing methodology for cadastral valuation of lands occupied by orchards considering the actual return on the evaluated land plot and the distance factor that affects the increase in cost and decline in return depending on the location of the plot in relation to the main markets. The example (plots are located in the Bezenchugsky district of the Samara region) shows that the costs of orchard plots are 2.73 and 2.93 rubles per square meter, respectively. Quality characteristics of the first plot are better, but it is located further from the centre of the region.


Introduction
Land plots of conditionally permitted use are agricultural lands unfit for tillage but used for cultivation of technical crops, perennials, berries, tea, grape and rice [1][2][3].
Perennials of the Samara region are represented by relatively small industrial orchards and berry-fields (except for the horticultural societies that are not considered in this paper). The real estate market lacks of such objects, so it is not possible to estimate the market value using the comparison approach [4,5].

Methods and Materials
In this case, we can consider the formation of the market value of lands from two angles: -using the cost approach, similar to the principle of estimation of lands of the third and fourth types of permitted use; -using the income approach [6][7][8].
We can evaluate land plot occupied by orchards using the same algorithm as in the evaluation of agricultural lands, where there is a need to determine: -using the cost approach, similar to the principle of estimation of lands of the third and fourth types of permitted use; -using the income approach [6][7][8].
We can evaluate land plot occupied by orchards using the same algorithm as in the evaluation of agricultural lands, where there is a need to determine: -the yield per unit; -the product value; -the costs per unit of cultivation and maintenance of soil fertility; -the unit revenue; -the unit rent (entrepreneur's expenditures and profit excluded) -the unit cadastral value of lands occupied by perennials; -the cadastral value of land plots [9][10][11][12]. The general formula for calculation of the value of the land occupied by the orchard is: where Ко is the capitalization ratio.

Results and Discussion
Evaluating lands dedicated to perennial plantings, we need to consider the time factor that reflects the period of expenditures uncovered by production. For example, modern apple orchards have a 15-18 years economic life period, and it takes trees 4-6 of those years to fruit. The last years of this period are characterized by a decrease in yields. At the end of the economic cycle of the orchard, there is a need to remake it or to eliminate it in order to vacate the land. This approach considers the income generated by the soil fertility and fixed assets, which include fruit trees, and results in an overvaluation of land [19][20][21][22].  Tables 1 and 2 show the generalized economic calculation of a 1.4 ha raspberry field set out on chernozem soil (based on data for farms using the modern Polish technology for growing raspberry and strawberry). The data is at 2011, however, considering the fact that the plantings were watered, we can assume that yield was the same in the dry 2010 year. Raspberry bears fruit in the second year after planting. Plantation works for 8 years. Irrigation is required.
When the 5-6-years production cycle is ended, the arable land is sowed with other field crops.
It is better if the preceding crop is spring cereal or if the land was left fallow. Table 3 presents the calculation of the irrigation system depreciation. The calculation is similar to the one done when creating an irrigation system for an orchard [23][24][25]. Table 3. Calculation of the depreciation allowance.

Indicator
Value Orchard area, square meters 2 000 000 Expenditures for hydraulic structures, rubles. 20 000 000 Unit costs, rubles/ square meter 10 The berry field area, square meters 10 000 Sprinkler system value, rubles 100 000.00 Depreciation period, years 8 Annual depreciation flow, rubles 12 500.00 The obtained result (70.44 rubles/square meter) exceeds the base land cost (before making a raspberry field) by several times, which confirms that the impact of fixed assets on the value of occupied land is significant.
We also offer to consider a similar example of calculation for an apple orchard (an intensive technology for dwarf rootstocks).
It bears fruit in the fourth year after planting. The orchard works for 15 years (since planting). Irrigation is required.
When the 5-6-years production cycle is ended, the arable land is sowed with other field crops. According to Table 4, it is better if the land is left fallow for a period of time. The result presented in Table 5 is significantly higher than the cost of land occupied by an orchard. It should also be taken into account that garden trees are classified as fixed assets, and their value is partially transferred to the land value. As mentioned above (when calculating the value of lands of the third and fourth types of permitted use), the business value cannot be transferred to the value of land entirely.
Therefore, when calculating the value of lands of the second type of permitted use, we can use the approach similar to the one used when calculating the value of lands occupied by buildings and facilities. In addition to the synergistic effect of the land value, there is also a need to consider the factor of distance of the land plot to the regional centre.
Hence, the total market value of a land plot of the second type of use can be calculated using the following formula: where Сn is the market (cadastral) value of surrounding lands; 1,2628 is the synergistic effect ratio equal to the entrepreneur's profit margin; Li is the distance factor of the evaluated land plot to the regional centre.

Conclusion
The proposed methodology for cadastral valuation of agricultural lands dedicated to perennial plantings is based on the described approach. Moreover, there is a need to take account of the actual return of the land plot and the distance factor that affects the increase in cost and decline in return depending on the location of the plot in relation to the main markets. The example (plots are located in the Bezenchugsky district of the Samara region) shows that the costs of orchard plots are 2.73 and 2.93 rubles per square meter, respectively. Quality characteristics of the first plot are better, however, it is located further from the centre of the region.