Prime Minister Putin visited Tambov, where he promised farmers that they would be able to get a discount on land. He also promised that teachers who agree to work in villages would be provided with 500,000 rubles and housing. He also pledged that mothers of large families would get minivans and assistance in repaying their loans.
Since the beginning of the 1990s, land legislation has been amended several times. And every time it changed a new loophole would appear - allowing swindlers to prosper. Some kind of order was achieved only after the law on the transfer of agricultural lands was amended.
The amendments simplified the process for determining land borders and cut back bureaucratic procedures. Over nine million citizens will be able to secure their private property rights. "It is in fact a large-scale land reform," the prime minister emphasised at a meeting of agricultural producers.
However, there are still 24 million hectares of so-called unallocated lands. They will also have to be assigned. A decision was made that allows farmers to buy this property following a simple procedure – without auctions. The price will be reduced from 20% to 15% of the cadastral value. "I am stressing the word 'cadastral.' The cadastral value is in any case lower than the market price," Putin stated.
Despite the discounts provided, many farming communities and individual farmers encounter problems getting funds to buy land or just maintain their businesses. They produce around 55% of food supplies in the country. With the inflation of global food prices, there is a chance to increase this share. But it requires more working capital. Putin stressed, "State-owned banks, I want to suggest that you all work with farmers."
However, this alone is not enough. No one will go to work in villages, even for a good salary, if there are no accommodation and no infrastructure (schools and hospitals). Putin claimed the government would provide comfortable houses to the private owners of dairy farms. The same applies to those just starting farms. The properties will not be just allocated for free but through loans and leasing. Free housing, however, will be provided to graduates of teacher training colleges who decide to work in villages.
There are 750 people already willing to participate in the program. They will be granted both housing and a relocation allowance – 500,000 rubles for two years. These funds have already been set aside in the state budget.
It is not the first time that Vladimir Putin has spoken of individual assistance to farmers. And he had an opportunity to prove his intentions as soon as the meeting was over. A woman approached him with her story: she has 20 children, sheep, poultry and a loan from the Russian Agricultural Bank to purchase livestock, which she is still repaying. The farmer said she really needed a minivan.
"We will act just as I said. We will repay your loan, build you a farm and buy you a minivan because you have a large family to raise," Prime Minister Putin promised.
Yulia Shestoperova