World meat industry news

The State Duma adopted in the second reading a bill that makes it easier for farmers to rent state and municipal agricultural land. The third reading is scheduled for 6 July. The document was developed by the government on behalf of Russian President Vladimir Putin.

It allows, from January 1, 2023, to lease, without bidding, for up to five years, agricultural land plots that are in state or municipal ownership, to a citizen or a peasant (farm) enterprise for the implementation of its activities. Moreover, such persons are prohibited from changing the purpose of the leased land plot, transferring the land plot to third parties (including sublease), and the right to lease it as a pledge.

It is also not allowed to make a plot as a contribution to the authorized capital of a business partnership or company, or as a share contribution to a production cooperative.

As Prime Minister Mikhail Mishustin explained earlier, simplifying the lease of agricultural land gives an additional advantage to owners of small farms, who find it difficult to compete with large agricultural companies at auctions.

The government expects that this will allow small and especially family agricultural enterprises to increase production volumes. In the future, according to Mishustin, the lease of the land plot can be extended or purchased.