Land can be leased to peasant (agricultural) companies for up to five years. In addition, this term can be extended. The farmer also has a prior right to buy this land.
At the same time, it is impossible to build a hotel or a residential complex on the site – it is forbidden to change the intended purpose of the land, the land can only be used for agricultural work. Likewise, the site cannot be assigned to third parties, including subletting.
As Prime Minister Mikhail Mishustin explained earlier, this will support small farms, especially family farms, which until then could not fully compete with large agricultural companies at auctions where lease contracts for such land are concluded. The government hopes that such a change will allow farmers to increase agricultural production.
The Association of Peasants (Farmers) and Agricultural Cooperatives (AKKOR), which initiated these changes several years ago, also hopes that the new law will prompt the release of unused farmland.
