Land bank analysis
Inventory your land bank, manage risk and improve land use efficiency
Risk management, land consolidation and optimization of costs are priority tasks that require high-quality analytical support. It is necessary to have information about every hectare owned, cultivated or leased by an agricultural company.
Our land bank accounting methodology is based on the use of complete and relevant data in three key blocks:
Comparison and analysis of data in these blocks makes it possible to optimize operating and administrative budgets, manage risks and ensure sustainable long-term development of consolidated land assets.
As part of the comprehensive analysis, 2 key reports are prepared: Land Bank Balance and Field Rating.
The balance sheet of the land bank is a key management report, which is formed according to the principle of ordinary balance sheets: Liabilities reflect the consolidation and efficiency of the use of leased lands, Assets - the structure of the lands under cultivation.
- Leased cultivated land;
- Owned land plots;
- Plots in exchange on the basis of a contract or sublease;
- Technical losses — afforestation, roads, etc.;
- Non-localized plots – not found on the map of the village council;
- Plots that are not cultivated, but are leased by the company.
- Leased land under cultivation;
- Land owned and cultivated;
- Plots received by exchange;
- Unjustified use within the fields — land plots located within the fields but not leased by the company;
- Unjustified use outside the boundaries of the fields.
Determining the balance sheet indicators of the land bank is accompanied by the creation of extended reports, which display detailed analytics for each risk category. Based on these indicators, a list of key tasks for employees is formed as a result.
Estimated data on the land bank is the basis for Field Rating. Rating indicators provide management with information on consolidation and risks of land loss within the field. The presence of technical losses indicates inefficient use of the leased land — a company can increase the area of fields due to reclamation and return of land to cultivation.
Ranking is based on the ratio of the area of reliable land plots with a registered right of use to the total area of the field. The rating of each field is determined by a number of characteristics, and according to the % of reliable lands the fields are classified into three grades of quality.
As a result, the overall Rating of the company's fields is formed. Rating analytics reflects the consolidation of land assets and is a starting point for making decisions regarding investments in irrigation, liming, and precision agriculture.
Field Rating data additionally expands the Land Bank Balance and gives the enterprise the following advantages:
- Prioritized work of the land department with a focus on land consolidation into solid massifs;
- Reliability rating of the company's fields for safe production;
- Analytics for planning investments in crop production and land purchase.
A comprehensive analysis of the land bank includes the following processes:
OTHER RESULTS (optional):
First, it is necessary to analyze the quality of the source data. In order to obtain a real state of affairs in land bank management, it is necessary to work exclusively with accurate and relevant data. Second, you should understand at the beginning of the project what you will do with the reports and how you will check the results of your team’s work afterwards.
It depends on the structure of the input data. In order to conduct a land bank analysis, we need to obtain a map of fields or an area of interest, internal registers of lease agreements, USREOU codes of all companies, taxpayer Identification Numbers of owners and employees. We receive all information from state registers from Vkursi Zemli service in 1 day.
SmartFarming conducts a comprehensive analysis of the land bank according to a proven methodology. We necessarily measure the fields with accurate reference points, and also digitize all the customer’s data as well as data from state registers. The cost of the complex project is UAH 50/ha (exlc. VAT).
As a result of the project, in addition to analytics for each hectare in lease, ownership and cultivation, you will receive a report on the risks of land bank management, as well as a detailed roadmap for risk mitigation. This will give an opportunity to determine the scope of the problem and prioritize your work.
It is necessary to conduct an land bank analysis if the company has out-of-date data on fields, different registers of lease agreements with different services, if there are problems in land relations with neighbors or communities, or when the company is preparing to sell or buy land. The main motivation of owners and management in conducting land bank analysis is to increase the efficiency of land bank management.
Yes, it is. As a result of conducting a land bank analysis, you will receive field maps, registers of lease agreements, maps of land plots that can be uploaded to any Farm Management System or Land bank Management System, including ProZemli and Vkursi Zemli.
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