Economic grounding of land consolidation projects

Land consolidation projects are being developed in the areas where the enlarging agricultural production calls for reparcelling of land parcels formed in the course of land restitution. Probable benefit of these projects should be economically grounded. While assessing the need for consolidation of agricultural land parcels it is advised to carry out the calculations and identify the annual production costs associated with the parameters of land parcels, i.e. their size, shape, distance from farming centres. It is also necessary to assess additional land consolidation factors (better farm management, better crop maintenance, etc.) and possible changes in farming lands when the cultivated land is used for building of roads or when another areas are developed and may increase the generated income. The article describes researches that aim at the preparation of methodical recommendations for the economic grounding of land consolidation project. Calculation of economic grounding for the project is necessary to identify the expedience of the project development and to justify the funds allocated for the project development. According to developed arable farm model, the costs and benefits of two land consolidation projects were jilculated. The cost recovery period for land consolidation according calculations is about 13 veais. the benefits from land consolidation - 23-27 LTL/ha. The methodology of land consolidation projects economical grounding should be improved developing arable and dairy farm modelsVytauto Didžiojo universitetasŽemės ūkio akademij