Brief: Russia Considering Leasing Farmland to Agricultural Investors for Free

June 1, 2015

Approximately 28% of Russia’s total farmland, or 56 million hectares, including 21.6 million hectares located in the Siberian federal district in central Russia, is not used for agricultural production according to data from the country’s Agricultural Ministry.

 

In response, the Ministry has proposed leading state land to agricultural investors for free for up to five years to reduce the country’s area of vacant and fallow farmland. The ministry also is taking under consideration financially compensating investors for the cost of developing new agricultural fields on state-owned land. An unidentified official from the Economic Development Ministry has stated that the proposal has been approved.

 

This is the second instance within recent months that Russia has considered granting free land to increase agricultural production. In February, the State Duma introduced a bill backed by President Vladimir Putin, which would allow for the distribution of 100-acre plots of farmland in the Far East to Russia citizens for agricultural purposes.

 

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