Land for farming: who can get it and how
Do you want to start a farm to raise rabbits or pigs, to grow tomatoes or apples? Then you need a plot of land. Read on to learn where to find it and how to buy it.
Do you want to start a farm to raise rabbits or pigs, to grow tomatoes or apples? Then you need a plot of land. Read on to learn where to find it and how to buy it.
Who can get the land
According to the legislation of the Russian Federation, a land plot may be acquired by both an individual and a legal entity. An individual may engage in farming or cattle breeding there. But a farmer has the right to start a business selling the products he receives only if he acquires the status of an individual entrepreneur (IP) or creates a peasant farming enterprise (PFE).
It is most advantageous to get a PFE: its owner can participate in the program of grants for beginning farmers. The amount is up to 1.5 million rubles. Legislation strictly regulates what they can be spent on, and buying land is one of the allowed items.
What land you can claim
Plots for PFE are issued only from agricultural land. These are: pastures, hayfields, arable land, orchards, vineyards, vegetable plantations, etc. They are located outside the boundaries of settlements.
They can have local roads and communications, forest plantations (designed to protect cultivated plants and soil from pests), structures and buildings that are used in the production and storage of agricultural products.
How to find a suitable land plot
- Contact your local authorities and ask for information on available facilities for the type of activity you intend to engage in - growing cucumbers under greenhouse film, fish in a pond, graze cows in a pasture, etc.
- Find an unregistered plot within the boundaries of the municipality and apply for it. Here the following should be taken into account: if the request is accepted for consideration, then the applicant must, at his own expense, survey the plot and register it. And if the request is subsequently denied, the money spent will not be refunded.
- Keep an eye on bids for the sale or lease of land. Apply for participation as soon as a suitable site becomes available.
Procedure for obtaining a plot
There are two ways to buy land for a collective farm: lease or buy. The first one is more popular because it is difficult to take and layout quite a large sum at the beginning of the business path at once.
What is needed to acquire the right to engage in agricultural work on the selected site?
1. Submit an application to the local government
In the application, specify: the location of the site, the type of registration - purchase or lease (and for how long), for what purpose the land is needed and why in this size, whether there is a registered PFE or the status of IE. The processing time of the document is 14 working days.
The minimum and maximum size of a land allotment is determined by the local authorities. Article 4 of the Federal Law № 101 from 24.07.2002 г.
The following documents are submitted with the application:
- passport, TIN;
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extract from the Unified State Register of Legal Entities (if the applicant is a sole proprietorship) or the agreement on the establishment of a PFE (if there is any);
- justification for the requested area - business plan, calculation of agricultural production capacity, etc.;
- technical documentation for the object - cadastral passport, land plan;
- confirmation of the applicant's right to obtain land without bidding (if there is any).
2. Participate in bidding
After receiving the application, the district administration announces an auction where everyone who wishes can compete for the right to rent or buy this land. The event is announced in the local press so that all interested parties learn about it. If there is only one participant - the applicant, he acquires the object at the minimum price.
According to article 39.3 of the Land Code of the Russian Federation the applicant may acquire the plot without bidding, if:
- owns buildings or structures on the land;
- leases the land for at least three years, has no irregularities in use, and has had time to apply before the end of the lease.
3. Execute a contract of lease or sale
At the end of the auction, information about the result is published in the media, and then the winner of the auction concludes an agreement with the local administration. He pays the rent or purchase price and also pays the state duty for registering ownership rights - 350 rubles according to the Tax Code of the Russian Federation ( article 333.33, si.24, p.1).
After passing these stages, you can legally develop your agricultural business: plan the purchase of equipment, seeds, fertilizers, and so on.
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