By adopting the law “On the turnover of Land for agricultural purpose” in the new edition, law makers hope to simplify land tenure and gradually returned to the turnover of unused land. They say that unclaimed shares will be real owners and efficient use of land to grow. Agricultural investor decided to find out what kind of risks and benefits for business is containing this document and than lacking for law to work effectively.
In whose interest the current law on agricultural lands since July.
One of provision of food security –the expansion of crop agriculture at the expense of unused arable land, like the head of management of land and property relations of the Ministry of agriculture, Samara region, Xenia Opelyants. Therefore the main task of new law, she said is return to agriculture “significant areas” unused land. Practice of new law until there is little but not all the government is adopted by –law is giving effect to provisions.
Became easier
The act is regulating the holding of general meetings of owners lands in common ownership, obliging them to participate in local government representatives – said first Deputy Minister of Agriculture in Chelyabinsk region Sergei Sushkov. This will allow to do land relations more transparent and reduce the risk of dispute between the tenant farmers and owners – he hopes. Now rural agricultural organizations and farming can purchase agricultural areas for more than 15% of cadastral value (in old law was maximum 20%), said the first deputy head of department agrarian transformation.
The changes were made and the rules for leasing agricultural areas complemented by Minister of Agriculture of Penza region, Vladimir Volkov: now the lease can be signed person, authorized by general meeting of shareholders, as previously required a lot of time for compulsory negotiation of documents with all parties to share ownership.
Procedures for selecting blocks of shares by conduction and general meetings became more complex, gives his opinion deputy director of agricultural holding “Kuban” Elena Artushenko (75 thousand hectares of arable land).
But now in case of death co-owners authorized the general assembly (person) would be to go right to the land by inheritance, the trustee of shares of deceased – she said. It eliminates that issues had arisen during the registration and allotment of plots of lease, if someone died. On the complexity producers for allocating shares of points and senior lawyer of law firm “Legal Megapolis” Natalya Bragina: the list provided for this document, compulsory participation in the transaction of local government and cadastral engineer. More requirements to the documents and their broader list, the longer the clearance of land – she explains – For each document is 30-day period, the information on participants in share ownership.
Talk about simplifying procedure of registration land properly supports Bratina – deputy director of legal matters consulting company BEFL Viktor Demidov.
Amendments “laid out on shelves” most of legal and other actions, but not quick and don’t make it easier to design, in which on average 500-900 days, he says.
Risks for business
Among the positive changes in almost all the respondents called simplification of lease land located in the common property. Now the registration of transactions with such land shall not be suspended. If someone dies – said managing partner of Law group “Ratum” Olga Romanova. And as shareholders most of them are old people, it is not uncommon. Previously it was necessary to wait for the entry in the right heirs, if not pass other procedures. Now on behalf of all shareholders have adopted a common.
But at the meeting need to formulate the essential terms of contract, in addition, have to pay attention to the shareholders who haven’t participated in the meeting or voted against the transfer of land to lease or against the terms of contract: they have right to allocate portion of leased warns Demidov.
In “Agroko” according to CEO Alexei Ivanov, has felt that the design of sites for rent made easy (all the land of company leased). And the chief lawyer of criminal code “agriculture” in the management 200 thousand hectares. Denis Belov by contrast believes that the new edition has simplified business life. “Many regional offices” Rosreestr still don’t know how to apply certain provisions of law – he said. On of the risks, which sounds official if the organization has leased part of the EU ETS with mutual ground and shareholder want to stand out, he has such opportunity. Means person can come and say that necessary to increase his rent and if the tenant against, it will allocate your site. This can also be a snowball with one pulled the other!
According to Belov the former law didn’t protect shareholders, they are often deceived, but only few cultivated land.
“The major agricultural organizations have consolidated and registered shares, at own expense to hold meetings and survey, put the patches on cadastre, draw up a warrant – he counts – And this money for example dissociate in the Black earth region is at least 200 hectares and generally enormous cost” And now a new version of law allow individual persons without incurring these costs and get to allocate some share, indignant Belov.
This is main risk for business agreed Olga Romanova. If earlier it was possible to get out the lease by agreement or by court order, but now owners, who don’t want to lease land, simply notifying the other side and dissolve the contract. She believes that companies will acquire land rights, and don’t take it out, and if they rent, the state both more reliable and safer.
The seriousness of risk confirmed Demidov from BFL, predicting reduced investor interest in the lease. And for those who intend to lease land, he advises to seek the written consent of all natural persons who have requested to transfer the land lease.
Vagueness of wording and possibility of misunderstanding lack of law, states the head of directorate of strategic projects “Razgulyai” (450 thousand hectares under control) Denis Mayorov. About the possibility of unilateral withdrawal of shareholder of the lease there is a lot of questions: Does this right apply to contract or valid or only apply to newly concluded, what is the mechanism of allocation of land plots. When literal interpretation of law is running the risk of decrease in tenant lands and lower deposit base and consequently, a loss of invested money in land he fears.
Withdraw or not
The rules on the compulsory withdrawal lands (Article 6) interviewed officials and think positive, though not undisputed and the lawyers and businessman contrary have doubts on their legitimacy and the reality of implementation.
Now more clearly defined procedures and the basis for compulsory withdrawal from owner side, said deputy chairman of State Duma by agrarian issues Airat Khairulin. “Now no possibility to freely interpret the concept of improper use or misuse in accordance with the purpose” – he said. In order that the law has improved the procedures for exemptions, and agreed to the head of legal department “Russian diary company” Roman Nikishkin.
Maybe withdrawn land, unused or improperly used three or more years. If there are violations to the owner of site initially prescribed penalty – 2-5 thousand rubles, for individuals – 4-6 thousand rubles- for officials, 80-100 thousand rubles – for legal entities. If it doesn’t eliminate the violation, the bodies of state control (Rossreestr, Rosselkhoznadzor) submit material about the authorized body of execution power in the region, and he may ask the court to withdraw the land and sell it at public action. However, it maybe uncertainty in law doesn’t specify instances of compulsory treatment in court for the seizure of land, added Xenia Opelyants, Ministry of agriculture, Samara.
The ambiguity of situation confirms Bragin “Megapolis Legal” if law says “may” rather than “must”, the executive authority in the region may not apply to court.
According to deputy governor Vyacheslav Gusev – the law doesn’t motivate the authorities to seize, “Cost of this procedure forces, time and money, the state law must give the proceeds from sale of unused land money” to neglect former owner perplexed official. Instead of punishing the offender, it’s forced to reimburse him the cost of unused land seizures! ”Yes and signs of non-federal government hasn’t been established yet,”- point to Urkov from Ministry of Agriculture and Food of Republic Mordovia.
Volkov from Ministry of Agriculture have doubts about land development period (two years). In this case the owner (about three years) and during all this time, the second total of five years the state can’t do anything in case of unused land for intended purpose. Even more than five – said Belov from “agriculture”: if the company doesn’t use the land, than for 3 years he can sell it to another legal persons.
Currently there are no criteria for non-land is preserved for possibility of corruption and pressure government officials.
