News
25.06.2008
Russia: for the last 16 years the sowing areas decreased by 40.6 mln ha
Expectations that land use would become more effective due to transition from the state ownership to land to the private ownership and from state and collective farms to new forms of economic management (farmers, agro-firms, joint-stock companies etc.) have not realized. During the period since 1991 to 2007 the agricultural lands in Russia reduced by 22.1 mln ha, arable lands - by 15.7 mln ha and sowing areas by 40.6 mln ha, stated in the memorandum project of the participants of the Second International Assembly "Soil and Yield" (St.-Petersburg, May 21-23, 2008).
According to the document, this happened due to influence of lands rent mechanism as well as state agrarian policy. Currently, spontaneous and unregulated lands market has been formed. Many lands lost theirs initial owners or became ownerless.
According to the Assembly participants it is expedient to create a specialized organization-operator, established by the state executive authority, through which it would be possible to pass lands into the long-term rent to the agricultural organizations and include lands to authorized capital stock of newly established holdings with further sell of their share holdings to private investors. This would allow to attract investments in agro-business development and return in rotation unused agricultural lands.
agrimarket.info
