Abstract
Already during the Land Reform, land properties of several land parcels were formed in the rural areas. Another factor that benefits to the fragmentation of farm properties is development of land market because buying or renting land for farm size building, it is not always possible to find adjacent land plot. Consequently, the land fragmentation not only makes land management difficult, but also increases the transport costs. With this rural land tenure system, competitive and efficient agricultural production cannot be discussed, so a large part of rural areas remains untreated. It was found that there is a strong correlation between the area of land parcels and their management - the smaller the area of a land parcel by the agricultural land, the greater the chance that it would not be managed, and vice versa, the greater the area, the more it is cultivated, that is, managed. Land consolidation is performed as the farm land use optimization activities in other countries. Land consolidation can be one of the efficient means for rural development, it can encourage formation of competitive agricultural production structure, giving farmers the opportunity to create holdings with a small number, but bigger size and better-shaped land plots. Thus, more income and opportunities to expand types of farming are created.