Land bank management system

The use of information systems provides effective management of the land bank and reducing the risks of doing business. 

For many years in the agricultural business of Ukraine, there has been a tendency to increase the land bank of agricultural holdings — an average of 10% per year. The exception is the recent years in which, for objective economic reasons, most companies have moved to consolidate and optimize their lands. In such conditions, the issue of increasing the effectiveness and safety of agribusiness management is becoming increasingly important.

Considering the fact that the land is the main asset in agricultural production, the construction of a land bank management system is the first and one of the most important steps for survival in the conditions of modern market realities. The moratorium on the land trade makes the Ukrainian agricultural market special in terms of creating a land administration system. This is due to the fact that, according to the current legislation, companies have the opportunity basically only to lease land plots. That is why the safety and effectiveness of this business begins with the establishment of land lease relations. Difficulties in registering leases and state acts on land plots create the first risk zone. These are signed, but unregistered lease agreements. In essence, assets are obtained for which there is a significant risk of loss under force majeure. To this can be added other types of land that require a "special" approach — land lots unclaimed by the owners, a legacy that has not been drawn up, stock lands and others. All these problems significantly complicate the process of managing large farms, operating sites in different regions of the country.


Creation accounting system

Now our company works with more 30 different projects to create accounting systems for agroholdings of Ukraine and CIS countries. Experience confirms that it is possible to automate the management process and improve information security, efficiency of land and legal services of large enterprises, by introducing an integrated information system, bringing all processes to unified regulations, and documents to unified standards. Otherwise, various economic and social problems arise, which ultimately can result in significant losses for agribusinesses.

Geoinformation system covers all areas of the management process, and its users are able to synchronize the processes of their activities. Therefore, within the framework of these projects, we reduce all available cartographic material to a single electronic map of the company — rationing cards for rural councils, exchange files, scanned or electronic maps of fields, and an open cadastral map of Ukraine. All registers under land lease contracts are systematized, imported into a single database and linked to a specially created electronic map. After that, the objects of the electronic map are displayed in certain colors in accordance with the selected criteria: the legal status of the lease contracts — registered/unregistered lots, unclaimed, etc. The term of the lease of land plots is up to 6 months, from 6 to 12 months, more than a year. At the same time, you create forms for data entry and report templates, link rental contract templates, certificates and other documents, and describe service regulations and instructions.

A separate issue is setting up access rights to cartographic information and a database. Within the framework of projects, we develop an individual system of access to information for each client-the delineation of access in accordance with specific subdivisions or village councils, the possibility of limiting the actions of users (viewing, printing, editing, copying), etc. Having own expertise in land lease issues, we also cooperate with leading legal companies to perform a full audit of the company's land bank.

Implementation of the information system provided the management of our company with operational reports, visualization on the electronic map of all leased sites in comparison with fields. Now the work of the company's land service is automated — all registers, contracts, scanned documents, templates, reports are in a single system, which provides data protection and significantly increases the efficiency of specialists

says Svetlana Viyazlovskaya, "Cousteau Agro" financial director.

The next step is the creation of an electronic map of fields and its further connection to the cadastral records database. This allows to solve the issues of control over the movement of land as an object of ownership. And in combination with data on crop rotation, soil condition - to establish monitoring of land as one of the most important production resources. Thanks to the field map visualization and the company`s cadastral map at this stage, two more characteristics of land plots are added-exchanged and exchanged. The management of the enterprise has the opportunity to control the process of exchange in terms of logistics and the correspondence of the received and transferred areas. Also, the subsystem for monitoring the contours of fields is launched in accordance with changes in the land bank.

The introduction of such a system made it possible to reduce all the leased land plots processed by our company on the map. We have a good visualization and full analysis of land plots, which allows to monitor changes online, and plan the land bank correlations. If the lease of the land plot ends, the contours of the field automatically change, and this allows the dispatchers to control the operation of agricultural machinery only on the company's own fields

says Andrey Tatarchenko, head of the Creative Group.

Practice shows that such projects are implemented within 3-6 months, and the results are completely compensating company's costs. Given the uncertainty in the context of national legislation, the situation in the economy, the implementation of land management information systems of agricultural holdings will be relevant for a long time. Companies that have already implemented the system, have the ability to ensure effective management of the land bank, to increase the investment attractiveness and value of the business.

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