19:20 / 22.05.2024

Leasing of agricultural land to be simplified

The plots will be leased through an online auction, and the rights to them can be transferred.

Photo: businessday.ng

On May 21, the Legislative Chamber of Oliy Majlis considered several bills related to agricultural land, the press service of the lower house of parliament reports.

Thus, a draft law on the leasing of farmland for secondary leasing (subleasing) came up for re-examination in the second reading. In February, it was sent to the relevant committee for revision, after which it was revised taking into account proposals from farms.

The document provides for the sublease of land along the boundaries of fields, around canals, irrigation and collector-drainage structures for up to 10 years. Suitable crops can be planted on them - in particular, mulberry trees.

The Land Code will include a rule on the sublease of plots of up to 10 hectares to sericulture farms, agro-industrial clusters and other legal entities. The bill was approved by deputies.

In addition, a bill on improving the procedure for leasing land for agriculture was considered in the first reading. According to it, the search for tenants for plots will be carried out strictly through online electronic auctions.

Tenants will be able to transfer rights to the plots provided to them to other persons. This provision will allow the use of leased land as collateral for loans – in case of default, the plot will be sold at online auctions while preserving its purpose.

The adoption of the law will simplify the turnover of farmland through the introduction of market mechanisms, the deputies noted. It was also stated that the ability to transfer rights to land would turn it into a marketable asset.

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