Who is eligible?
First of all, it is necessary to figure out who actually has the right to receive a lease for a farm. Registered legal entities have the right to participate as a farm or peasant.
In addition, citizens who only intend to create their own farm and have not yet even become legal entities have the right to participate.
In addition, it is important to note the fact that only those persons who have submitted an application to participate in the auction, that is, in the auction held by the administration, have the right to take part in the struggle for a land plot as a lease.
Also, these individuals not only have to submit an application, but also have to pay an entry fee of a clearly specified amount. Such a contribution allows you to participate in the bidding procedure and will make you a possible contender for victory.
Read more about who can exercise the right to receive such a plot and under what conditions in our article.
Site requirements. Types of plots
Plots that are allocated for peasant and farm enterprises are classified as agricultural lands.
They must be located outside populated areas.
They may include various areas occupied by reservoirs, forests, roads, communications, buildings and structures.
Particularly valuable agricultural lands receive special state protection within the framework of agricultural lands.
These are lands whose cadastral value is 10% higher than the average municipal level; PPP and research institute lands, artificially irrigated or drained lands.
A plot of land in a peasant farm is indivisible: the owners have the right to a share in it without allocating it in kind. The land can be divided if the peasant farm ceases to operate.
The plot allocated for peasant farming must be used for its intended purpose..
The types of agricultural land according to their possible use include:
- poultry farming,
- vegetable growing,
- gardening,
- floriculture,
- beekeeping,
- fish farming,
- winegrowing, hunting grounds,
- to create a trout farm,
- haymaking and grazing,
- creation of protective forest plantations.
Each subject has the right to independently determine the maximum value of the size of transferred lands.
Conditions of receipt
In order to become the owner of a plot for farming, you must meet a number of conditions.
The first of these relates to the fact that you are seeking to obtain a plot of land in the same subject, and preferably in the area where you registered your legal entity.
Besides whom, you must have statutory documents that will regulate the activities of your legal entity. Also make sure that your farm obtains a license to carry out such activities.
It is very important to pay attention to how you will receive a land plot for rent. There are two ways to do it.
The first is an auction, which is scheduled if you learned about an available free plot of land from the media.
If you independently find a plot of land that you want to rent, then you turn to the administrative body with such an urgent request.
Remember that the person participating in the auction or receiving real estate as a result of the registration procedure through the administration must not be bankrupt or unable to pay for the leased land plot.
It is also advisable that your farm has a positive experience of cooperation with the state if you have already rented land from the administration. The total compliance with all these conditions may become the basis for either obtaining or refusing to obtain a lease for a land plot.
Financial questions
The total amount for the use of land by farmers will consist of:
- the amount of rent, which is calculated as 3% - 5% of the cadastral value of the plot, or based on an auction;
- the purchase price of the plot from the municipality and the rate of land tax if there is a change of land owner.
In some situations, you will have to spend money on carrying out boundary work and preparing documentation for registering the site with cadastral registration.
There are no separate provisions in federal legislation according to which land is provided to farmers free of charge.
However, the Land Code allows that such plots can be transferred on the terms of free lease for a period of up to 5 years. After which the tenant can buy the land for a symbolic price. A similar option should be specified in the clauses of the lease agreement.
In certain settlements there are special programs under which you can obtain land for agricultural activities free of charge.
The tenant must use the allocated plot of land only for its intended purpose.
When concluding a lease agreement free of charge, he does not make any monthly payments, but only pays the appropriate land taxes. Subsequently, the tenant will easily obtain ownership of such land.
This option is often used by preferential groups of citizens, for example, large families.
How to get land for farming?
As we have already said, there are two ways that will help you become the owner of a land plot on a lease basis. The provision of land for farming is carried out through an auction or free of charge.
Let's consider what fundamental differences there are between the first and second methods of obtaining land for peasant farms.
For money
The first way is to hold an auction. This means that the future tenant learns that the land is being leased to him through the media, also through an announcement from the administration.
Information about the auction must be published no later than 30 days before the event itself.
If you are interested in the proposal, then you need to contact the administrative body in order to apply for participation.
In addition to submitting your application, you will need to pay an entry fee. It will be clearly established by the administration for a specific auction. The payment receipt must be attached to your application.
Unfortunately, without paying such a fee, participation in the auction is simply impossible.
Once you have completed all the preparatory steps, you can proceed directly to the auction procedure. You must appear before the administrative authority within a clearly established period. The price will be announced at the auction, as well as its main features.
After this, auction participants begin to offer their prices. As you understand, the highest monthly rental price wins.
The person who offered this value upon presentation of the application, as well as a receipt for payment of the entrance fee, enters into a rental agreement with the administrative authority.
After the transaction is properly registered with the Rosreestr organization, you can begin to use the allotment.
Read more about how to receive land from the state free of charge for farming.
For free
The question of how to get land for a peasant farm for free is heard quite often. This second method of obtaining a plot of land for rent for farming is completely simple.
If a person or legal entity has found on the cadastral map an object that does not belong by right of ownership to a private person or organization, but is under the jurisdiction of the state, then he has every right to come to the administration in order to ask for this plot of land for rent.
At the same time, it is necessary to clarify in advance with the Rosreestr authority that this property does not really belong to anyone.
You should also take into account that you may be refused due to reasons such as the use of the land plot for state purposes, as well as the impossibility of the land participating in civil circulation.
If the plot meets all the established requirements, then the administration sets the rental price per month for the land plot, focusing on the cadastral value.
If you are satisfied with the offer, you can draw up a lease agreement, and pay at least a year’s rent immediately as a deposit . This transaction is required to be registered, after which you exercise your rights.
More details about free receipt of agricultural land can be found here.
Which territories are suitable
Areas located near transport roads and transmission lines are suitable for farming. In this case, you can save money.
- If communications are available, you can start working immediately. This will also help maintain the level of sanitary standards.
- It is worth choosing territories whose area is sufficient for farming.
- You need to pay attention to areas located near populated areas. Resources will be easier to transport. And you can resolve issues with the administration faster.
Construction on peasant farm lands is possible. It is important to comply with legal requirements so as not to run into problems.
Last updated: October 31, 2019, number of views: 29486
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List of documents
In order to participate in the auction, you will need a passport or statutory documents, and in the case of a legal entity, a receipt for payment of the state fee in the form of an entry fee, as well as an application for participation.
If we are talking about registering a lease if you found a plot of land on your own, or in the case of an auction, then you will need all the documents that indicate that you have opened a farming enterprise, namely, statutory documents, tax certificates inspection, Ministry of Agriculture and so on.
Do not forget about the license to permit such activities.
Legislation
The activities of farms in Russia are regulated by the Civil Code and Federal Law-74 (on peasant farms).
This indicates the possibility of owning peasant farms as individual
entrepreneurs and legal entities, i.e. Farm land can be owned by both individuals and legal entities.
The main activities of farms are: production and processing of agricultural products and livestock products, their transportation, storage and sale.
Peasant farm plots can be used for the following needs:
- Crop farming: growing beets, potatoes, grains, industrial, oilseeds, fodder crops, tobacco, etc.
- Vegetable growing, collecting and growing mushrooms, fruits, grapes, berries, nuts.
- Animal husbandry: breeding sheep, cattle, horses, mules, donkeys, goats, pigs, poultry, rabbits, deer, silkworms, camels, deer, beekeeping, breeding domestic and laboratory animals, frogs and worms.
- Mixed farming.
The land in a peasant farm can be used by its members to grow products exclusively for domestic consumption. This is not prohibited by law.
In such a situation, registration of an individual entrepreneur or LLC is not required.
Property from peasant farms may include:
- land;
- buildings and constructions;
- outbuildings (barn, barn, etc.);
- reclamation and other structures;
- draft animals and poultry;
- agricultural machinery and equipment;
- inventory;
- cars;
- other property.
At the same time, some types of peasant farm activities do not require the allocation of land. For example, if farmers process vegetables, they can do this in rented premises.
The procedure for allocating land to farms, the requirements for it and the purpose of such plots are prescribed in the Land Code, as well as in the Federal Law “On the turnover of agricultural land”.
Drawing up an application
It is very important to correctly draw up an application for a request for the provision of land plots for peasant farms. Please remember that this application must be drawn up on A4 sheet, and in printed font.
In the application, you provide information about yourself as a legal entity that intends to become the owner of a farm in a separate territory.
In addition, your direct contacts must be indicated. Another important information that should be located in this document is the possible presence of other owners of the farm, which should be indicated.
Next, you must outline how you intend to use the particular site taken, and also describe on what basis you are claiming it.
After you have stated in your application all your requirements regarding the provision of a plot of land for rent, you can indicate additional reasons that can work in your favor or vice versa. After this, you can attach any documents to the application, and then put a date and signature.
We do not recommend completing the documents yourself. Save time - contact our lawyers by phone:
8 (800) 350-29-87Moscow
Briefly about the main thing
Thus, peasant farms are a universal option for immovable land property to meet rural and economic needs. To build on such a territory, a number of documents and permits are required. However, many concepts are not properly regulated by law.
A little more attention! Write in the comments what you think - should only farmers manage land for peasant farms for themselves, or can it be considered as a business organization? |
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Reasons for refusal and what to do in this case?
It often happens that you have done everything possible to become a tenant of a plot of land. You have found a good plot of land, submitted an application, or have already managed to pay the entry fee at the auction. But the administration said that such behavior was impossible.
According to the rules, the administration notifies about this no later than 15 days before the event, in the event of your personal appeal after reviewing the package of documents. Why might such an action be denied?
In fact, there can be a lot of reasons. Firstly, it may have turned out that this site has limited circulation. Or may not participate in it at all. This means that you do not have the right to use this land plot on an equal basis with others.
Another reason for refusal is the need to use the land allotment by the administration itself within the framework of state needs.
The next circumstance, which is also considered significant, is that you incorrectly formed or submitted the package of documents. You may be asked to bring some papers or re-issue them. An incorrectly completed application or failure to pay the entry fee is a refusal to hold the auction.
If you are an improper tenant, that is, for some reason you do not meet the requirements of the law, a refusal is also possible.
As you can see, there can be a lot of reasons, however, if you know in advance what you may encounter, then perhaps you will avoid serious problems in the future.
In this article, we examined the options for obtaining land for a farm (farm). In other materials on our site you can learn about:
- how to get land for private household plots for free and register the plot correctly;
- how to get land in SNT and privatize it for free.
Nuances of buying and selling agricultural land
Transactions with this category of land plots are controlled by the state, due to the fact that these lands are considered particularly fertile.
When buying and selling such land, you need to consider some features:
- Citizens of other states are limited in purchasing such plots;
- One citizen cannot acquire more than 10% of the area of all lands of this category located in his area of residence;
- State bodies and municipalities have the preferential right to purchase and sell these plots.
The person who is the seller of the site is obliged to notify the local authorities in writing of his intention to sell.
The following shall be attached to such notice:
- Certificate confirming ownership of the plot;
- Copy;
- Site plan.
If government authorities ignored the notice or issued a written refusal to purchase, the seller can sell the plot to a third party. The sale period is 1 year. The cost should not be lower than that indicated in the notice.
If the seller decides to reduce the price, he again must notify government agencies about this. If this clause is violated, the transaction can not only be challenged, but declared void. This means that the state will take away the land.
Conclusion
Creating a peasant farm today is not a problem, either with a family contract or on your own - the package of documents is minimal, if you try, you can even get subsidies from the state. With careful preparation, drawing up a well-thought-out business plan and the availability of start-up capital, the likelihood of success is quite high.
But farming is not a profession, it’s a way of life, and when it comes to livestock farming, it’s a complete immersion 24/7 without days off or vacations. Ready? If yes, go for it and everything will definitely work out!
For motivation, we recommend reading “True Grit: The Story of One Farm.” And also, figure out whether store-bought food is so bad and how expensive it is to grow your own. Video - homemade cheese for every taste or the path from hobby to small business.
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