Deputies Propose Limiting Agricultural Land Lease for Recipients of State Support
The bill to amend the Land Code was submitted to the State Duma on October 19. Among the authors are the Deputy Chairman of the lower house Alexey Gordeev and the Chairman of the Committee on Agrarian Issues Vladimir Kashin. The document stipulates that only agricultural organizations and farms receiving state support can bid in auctions for leasing state and municipal agricultural land.
Currently, state support is mainly provided to small and medium-sized enterprises. To access relevant state programs, such companies already confirm their belonging to the agribusiness and the presence of income from the sale of agricultural products. It is this status that is proposed as a condition for access to auctions.
Currently, state and municipal agricultural land can be leased without auctions for up to five years. This option is used when the plot is provided without auction. If multiple applicants compete for the land, a competition is announced where claimants can participate.
The proposed changes establish a more limited range of auction participants. The bill concerns lands designated for agricultural use and links the right to claim them to the actual receipt of agricultural state support. The initiative's text refers to current agricultural producers, primarily representatives of small businesses.
The Ministry of Agriculture supported the deputies' initiative. The ministry noted that the current procedure allows individuals and organizations not engaged in agriculture to participate in auctions. According to the ministry, this may limit agricultural producers' access to land resources.
The Ministry of Agriculture stated that the amendments should make the provision of plots more targeted and ensure their use for intended purposes. The ministry also connected the project with increasing land availability for those directly engaged in agricultural production.
The decision to change the lease procedure should be made as part of the State Duma's consideration of the bill. Until the new norms come into force, the current procedure remains, which provides for leasing without trading for up to five years or participation in a competition if there are multiple claimants.
