MOSCOW, July 8 – RIA Novosti. Senators have passed a law that makes it easier for farmers to lease state and municipal farmland, from January 1, 2023, they will be able to take such land on lease for up to five years and without multiple offers, as well as the right to priority purchase of a leased land.

At the same time, it is forbidden for these persons to change the purpose of the leased land, to transfer the land to third parties (including sub-lease) and to lease it as a pledge. Also, it is not allowed to build land as a joint venture or as a contribution to the authorized capital of the company or as a share contribution to a production cooperative.

The original version provided a one-off provision of leased land to farmers without tender, but was clarified during the second reading.

As Prime Minister Mikhail Mishustin explained earlier, simplifying the lease of farmland gives smallholders an added advantage, who find it difficult to compete with large agricultural companies at auctions. The government hopes this will allow small and particularly family farms to increase their production volumes.