Since 2013 the Moscow region has had 160,894 hectares of land involved in agricultural use, according to a spokesman for the regional government. This is about 10% of the total area of farmland in the region (1.643 million hectares). At the beginning of 2013 the share of arable lands in the Moscow region was 61%, by the end of the year it will reach 74%. About 200,000 hectares of arable land has yet to be put into circulation said “Vedomosti’s” source.
The authorities encourage land owners to cultivate their lands with a number of measures, the governor of the region Andrei Vorobyov stated, “A strict system of monitoring has been established and those who try to avoid it or sit like a dog in the manger, will be penalised.” Several years ago the region introduced a number of legislative initiatives to encourage farming; these included tax breaks for land in use, ie. 0.3% tax, not in use 1.5% tax. It also meant penalties for land not being used for its intended purpose, up to 10% of the cadastral value. Furthermore if this was repeated in the course of 3 years, the authorities could initiate the procedure of land acquisition in court. Therefore, the owners of unused farmland are forced either to sell it or rent it.
In such a sector like agriculture, a 10% growth in area is very serious, notes the executive director of "SovEkon" Andrei Sizov. Managing partner of accounting firm BEFL Vladislav Novoselov agrees, but notes that with agricultural statistics a high level of accuracy is not possible, as part of the land is used as pasture. "On the other hand, growth in the agricultural sector, especially against the background of falling/stagnating in other sectors, has caused the activation of unused land.” According to the vice-premier of the regional government Denis Butsaev, since 2013 the region has doubled cereal production (up to 41,000 tonnes), increased potato production by 28% (up to 885,000 tons), and vegetables by 30% (to 625,000 tons).
Yet there are not enough private investors in the region, which means the local authorities need to create the right conditions to attract them. The state program "Agriculture of the Moscow suburbs" provides economic incentives for agricultural producers. For example, the region compensates investors 20% of capital costs for the establishment and modernisation of agrarian and industrial complexes.
Source: vedomosti.ru