Land & Farming.

[TsarSamuil]

Hong Kong-sized plot of Russian land leased to Chinese agrofirm.

RT.com
June 16, 2015 12:29

Chinese corporation Zoje Resources Investment has leased a large plot of land in Russia’s Transbaikal region for agricultural exploitation. The Chinese corporation is expected to invest estimated $450 million into the project over the next 49 years.

Huae Sinban Company, Zoje Resources’ wholly-owned subsidiary from Zhejiang province, has inked an agreement to lease 115,000 hectares (1,150 sq. kilometers), of them 65,000 hectares of wasteland and 50,000 hectares of pastures, in a region close to the border with China and Mongolia in Russia’s Transbaikal region, Chinese People’s Daily reports.

The lease payments will be a nominal 250 rubles (less than $5) per hectare per year, or about 1.409 billion rubles (approximately $26 million) over the 49-year period.

Huae Sinban plans to pursue various activities in Russia, from growing grain, oilseeds, fodder and herb material for pharmacy to organizing poultry, meat and dairy production.

If the first stage of the project in 2015-18 proves to be a success, the Chinese company is expected to eventually raise its total area of land leased in Russia to 200,000 hectares.

The Chinese agro industrial offshoot has reportedly taken on an obligation to invest into development of the agricultural tenancy more than 24 billion rubles (close to $450 million).

The produce will be supplied to both Russian and Chinese markets.

Huae Sinban’s president, Li Demin, is well aware of the risks his company could face in Russia.

Russian legislation sets a 3-year limit to get lands ready for agricultural production, making this condition the biggest risk for Chinese farming in Russia, particularly considering the fact that the lands to be developed by the Chinese have been out of agriculture for about 20-30 years - since the collapse of the Soviet Union - so bringing them back into proper condition will imply hard work from 2,000-3,000 laborers.

With more that 90 percent of its investments being made outside of China, Huae Sinban’s policy has a definite foreign expansion vector of and the company is certain of its own resources.

To lease the land in Russia’s Transbaikal region, Huae Sinban has won a competition with several other Chinese companies, as well as companies from South Korea, the US and New Zealand.

Zoje Resources Investment was founded in 1994. Its main asset is Zoje Sewing Machine company.

In May this year, Russia and China agreed to set up joint $2 billion investment fund to develop agricultural projects in both countries, together with creating a free-trade zone between the two nations’ key farming belts.

China is known for seeking to diversify its food supplies, having spent billions of dollars acquiring stake in food-producing and trading companies in countries such as Argentina and Ukraine.

Last year China’s state-owned Cofco Corp., spent $1.5 billion to buy a 51 percent stake in Russia’s Noble Group Ltd. which owns wheat, corn and barley operations in Russia.

As of now, the agriculture trade between China and Russia is greatly outbalanced towards Moscow, with Chinese companies importing considerable quantities of soybeans, corn and canola from Russia, whereas food exports to Russia are purely symbolic.

China's greatest international undertaking at the moment is development of the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives put forward by President Xi Jinping in 2013 to breathe a new life into the two ancient trading routes. These projects have found an active support on the part of the members of the Eurasian Economic Union, currently consisting of Russia, Belarus and Kazakhstan.

Russia's ally Belarus is swiftly expanding technological cooperation with China in another unprecedented bilateral project.

Last year Beijing agreed to invest $5 billion into construction of an entire city combined with industrial park near the Belarusian capital, Minsk. It is planned that the city will have enough housing to accommodate over 155,000 people, making it to the top 10 of largest cities in Belarus. The project has been branded as ‘the modern city on the Eurasian continent.’

[TsarSamuil]

Leftists propose free land distribution to boost Russia’s middle class.

RT.com
3 Nov, 2015 13:31

The Fair Russia party has prepared a bill proposing the free handout of 1 hectare land plots to all citizens, claiming that such a measure would increase the strength of the middle class in the country, help agriculture and the development of unpopulated regions.

The bill was drafted Tuesday by the head of the Fair Russia parliamentary caucus, Sergey Mironov, and MP Oleg Nilov of the same party. The current version of the document allows certain categories of citizens, such as families with many children, disabled persons and people whose profession includes hard physical labor to receive 1 hectare (2.47 acres) of free land from the state to build a home and start a farm for personal use or a commercial agricultural enterprise.

At the same time, some categories of citizens, such as convicts who have not served their sentences and all people convicted of corruption crimes would not be allowed to participate in the program.

According to the bill, the land will be first granted for free use for a period of five years. After that, state bodies will check if the plot is used for the declared purposes and allow prolongation of its free use or make it the homeowner’s permanent property.
In comments to the media, Mironov said that he hoped that the measure would help millions of Russians to turn to agriculture and also solve the problem of repopulation of remote areas and the return of abandoned lands to agricultural production.

Eventually, the new landowners could form the core of the Russian middle class, he added.

Another benefit of the program was its input into the import replacement program launched after Russia introduced reciprocal sanctions on agricultural produce from EU countries.

Oleg Nilov added in comments that the bill could fulfill the Bolsheviks’ promises to give the land to the Russian people, even if it happened a century after these promises were made. He noted that the free handover of land plots was very appropriate during the crisis, as it would allow people to invest their savings and revive the national economy.

Fair Russia’s idea of a “Russian Homestead Act” was not original – in mid-January the presidential envoy to the Far East Federal District, Yuri Trutnev, suggested offering large land plots for free to anyone who resettled to the Russian Far East to start a farm or other business. The plan also included the handover of one-hectare plots, a ban on selling the received land and a five-year trial period.

However, according to Izvestia daily, the start of the Far East land handover has been postponed from September 2015 to sometime in 2016.

[TsarSamuil]

Land grant: Govt drafts bill for ‘1-hectare per Russian’ in Far East.

RT.com
17 Nov, 2015 10:16

Russian Prime Minister Dmitry Medvedev has ordered the cabinet to draft the bill allowing every Russian citizen to get 1 hectare land plot in the Far East for free on condition that the land would not be passed on or rented to foreigners.

The PM ordered the development of a special web service that would allow Russians to get all the necessary papers confirming their property rights remotely and with a minimum of red tape. The plots will be divided from land that’s currently federal and municipal property.

The explanations to the bill, released on the government website on Tuesday, say Russian authorities expect the free land handover to attract more people to the Far East Federal District, to slow or stop the outward migration of locals and boost the socio-economic development of the territory.

The bill also prohibits any use of land plots received for free by foreign citizens. It specifically details all types of legal schemes used in real estate to get around this and bans them – for example actual sale, passing as a gift, renting out, trust management, free use, etc.

The idea of a ‘Russian Homestead Act’ was first proposed in mid-January this year by the presidential envoy to the Far East Federal District Yury Trutnev, who proposed offering large land plots for free to anyone who resettled to the Russian Far East to start a farm or other business. The plan also included the handover of one-hectare plots, a ban on selling the received land and a five-year trial period.

As Trutnev presented his plan to the press, he said President Vladimir Putin had called the initiative correct in principle and noted that similar programs had been successfully implemented historically in Siberia. Putin also urged all responsible officials to be precise and cautious when detailing the conditions for land ownership.

Recently a similar bill was prepared by MPs from the center-left party Fair Russia, who claimed that a free land handover would increase the strength of the middle class in the country, help agriculture and the development of unpopulated regions. However, the leftists’ bill was not limited to the Far East Federal District and allowed for the handout of land plots throughout Russia.

[TsarSamuil]

Putin wants Russia to become world's biggest exporter of Non-GMO food.

RT.com
3 Dec, 2015 15:08

Russia could become the world's largest supplier of ecologically clean and high-quality organic food, said President Vladimir Putin on Thursday. He also called on the country to become completely self-sufficient in food production by 2020.

"We are not only able to feed ourselves taking into account our lands, water resources – Russia is able to become the largest world supplier of healthy, ecologically clean and high-quality food which the Western producers have long lost, especially given the fact that demand for such products in the world market is steadily growing," said Putin, addressing the Russian Parliament on Thursday.

According to the President, Russia is now an exporter, not an importer of food.

"Ten years ago, we imported almost half of the food from abroad, and were dependent on imports. Now Russia is among the exporters. Last year, Russian exports of agricultural products amounted to almost $20 billion - a quarter more than the revenue from the sale of arms, or one-third the revenue coming from gas exports," he said.

Putin said that all this makes Russia fully capable of supplying the domestic market with home-grown food by 2020.

In September, the Kremlin decided against producing food products containing genetically modified organisms (GMOs).

Russia imposed an embargo on the supply of products from the EU and the United States as a response to Western sanctions. After Turkey shot down Russian Su-24 bomber, Russian authorities decided to ban the import of fruit, vegetables and poultry from Turkey. The ban will take effect from January 1.

[TsarSamuil]

Serbia: Farmers protest new land-sale legislation in front of Serbian Assembly.

Ruptly TV
Dec 24, 2015



Hundreds of farmers from all across Serbia protested in front of the Serbian Assembly in Belgrade, Thursday, against a new draft legislation regarding sales of fertile agricultural land.

[TsarSamuil]

Russia to up grain production 25% by 2030 - Agriculture ministry.

RT.com
26 Feb, 2016 10:07

The Russian agriculture ministry is predicting grain production will increase by 25 percent over the next fifteen years to 130 million tons as a part of the strategic development of the cereals market.

Growth will come from expanding the areas current planted with grain. Cropped fields are expected to increase to 49 million hectares (490,000 sq km) as opposed to the current 46 million. The average yield is projected at 2.74 tons per hectare from the current 2.36.

Domestic grain consumption is expected to increase by 17.5 percent to 81.1 million tons due to a boost in livestock breeding and processing of raw grain into products as starch or syrups.

Russia expects to control over 10 percent of the global grain market boosting exports by 61 percent to 48.3 million tons. The country currently exports to Turkey, Egypt, Saudi Arabia, Iran, Azerbaijan, Sudan and Yemen.

The government expects to invest 2.9 trillion rubles ($38.2 billion) in the next 15 years with private investors providing another 3.1 trillion rubles ($40.8 billion).

However, some experts suggest the Russian agriculture sector does not need to look for Kremlin help.

“The government investments are not necessary,” the head of the Russia’s agriculture markets research company 'Sovecon' Andrey Sizov told Vedomosti. Such measures as abolishing export tax on grain and raising the competition in the transport sector, as well as imposing administrative fines for improper use of the railway service would be enough to develop the industry.

The major producers say Russian grain might take on markets if the country could offer lower prices. Morocco, Indonesia, the Philippines, South Korea and China are the most promising markets, according to Russia’s agriculture ministry.

[TsarSamuil]

US losing out to Russian wheat exports.

RT.com
22 Apr, 2016 13:56

The United States was once the world's leading wheat exporter, but now is losing its position to Russia and Canada due a stronger dollar, stagnant yields, rising competition and climate change.

According to analysts, exports of wheat may drop 9.3 percent to 21.1 million metric tons in the season ending May 31, the lowest since 1972.

“We’re no longer going to lead in volume every year,” said Alan Tracy, president of US Wheat Associates told Bloomberg, adding that an increase in global wheat trade was the only hope for the country.

Nearly forty percent of the US crop goes for export, according to the Department of Agriculture. The acreage for winter wheat fell to its second-lowest since 1913.

As US wheat is no longer the leader in global markets, American farmers are changing to corn and soybeans.

Russia is now the world’s leading wheat exporter and is monopolizing Middle East markets, which were once the preserve of America.

Russia will harvest 62.5 million metric tons of wheat in 2016, the most in eight years, according the Moscow-based Institute for Agriculture Market Studies (IKAR). Exports from the Black Sea area rose to $185 a ton last week, the highest since December. Prices increased 3.9 percent from a five-year low set in February and March, reports IKAR.

“Crop conditions currently are good, especially in the southern district,” said Olivier Bouillet from Paris-based consulting company Agritel.

The richer harvest from Russia might compensate for the drop in Ukraine, where output may fall about nine percent to 7.2 million tons.

[TsarSamuil]

China to import more Russian wheat.

RT.com
27 Apr, 2016 07:45

Chinese food safety experts have given their approval to the quality of imported Russian wheat. The Deputy Chief for Food Safety Supervision Ren Zhengxiao says it could lead to more imports.

“Russian wheat has considerable advantages being of high quality and meeting food safety standards. We hope Russian companies will make efforts to export wheat to China,” said Ren Zhengxiao, adding that agricultural cooperation between China and Russia is expanding.

Last month, Russian Deputy Agriculture Minister Sergey Levin said Russia will start actively supplying wheat to China in the next harvest year, when separate storage is available.

Russia wants to get approval for other grain exports to China this year, according to Russia’s trade representative in Beijing Aleksey Gruzdev.

The countries signed protocols on the food safety regulations for imports of Russian agricultural products including wheat, corn, rice, soy and rapeseed in December.

Beijing is allowing imports of wheat grown in the Altai, Krasnoyarsk, Novosibirsk and Omsk regions.

Russia is the world’s leading wheat exporter.

[TsarSamuil]

Putin offers free land for citizens & foreigners in Russia’s Far East.

RT.com
5 May, 2016 07:22

President Vladimir Putin has ordered free land handouts in Russia’s Far East to be provided with minimal infrastructure. On Monday, he signed a law offering land plots of 1 hectare (2.5 acres) to Russians and naturalized citizens for free.

“We should work with regional authorities, so that land plots are allocated in areas with at least minimal infrastructure,” Putin said on Wednesday while meeting with Russia's Far East Development Minister Alexander Galushka.

According to the minister, the infrastructure could be provided to a group of 20 land owners. He said that since the ministry has announced the idea of land development, people have started applying.

They suggest cooperation of about 200-300 people, said Galushka, adding that then the provision of infrastructure becomes possible, even if it’s not a highly-developed one.

The Minister also said that the Cabinet is preparing a bill on lowering electricity prices in the Far East to the average cost in Russia.

The idea of a so-called ‘Russian Homestead Act’ was first proposed in early 2015 by the presidential envoy to the Far East Federal District, Yury Trutnev, who suggested offering large plots of land for free to anyone willing to resettle to the Russian Far East to start a farm or business. The program is one of the initiatives aimed at boosting the economy in the region.

Anyone is entitled to apply for up to a hectare of land in the Kamchatka, Primorye, Khabarovsk, Amur, Magadan and Sakhalin regions, the republic of Sakha, or the Jewish and Chukotka autonomous districts.

The land can be used for any lawful purpose but can only be rented, sold, or given away after an initial five-year period.

Foreigners are also allowed to use the land, and the registration of full property rights is only possible after the naturalization of potential owners.

[TsarSamuil]

this is treason! Makes me boil..

Communists seek to expand free land handover program from Russian Far East to Siberia.

RT.com
13 May, 2016 09:55

A Russian Communist Party MP has proposed applying the recently approved state program of free handover of land not only to the Russian Far East, but also to much larger territories in Siberia.

“If the government bill on free land handover has been signed into law, we suggest that it should be expanded to the territory of Siberia already today. These two macro-regions must become pilot grounds and the collected experience could be later used on the whole territory of our country,” RIA Novosti quoted Sergey Obukhov as saying Friday.

“One of the possible ways to restart the cultivation on unused lands is to give these lands top citizens who want to work in agriculture. I assure you, we will find enough of them,” he added.

According to Obukhov’s estimates, the total area of unused agricultural land in Russia currently exceeds 40 million hectares.

Earlier this month, President Vladimir Putin signed into law the bill introducing free handover of land in the Far Eastern regions to Russians and foreigners who want to build homes or start businesses in agriculture or tourism.

The document provides for the free handover of 1 hectare (about 2.5 acres) of land to anyone who applies for the program. However, foreign citizens will only be allowed to utilize the land, not own it outright. Registration of full property rights is only possible after the naturalization of potential owners.

The original bill was drafted by the Russian government in November last year. The explanations attached to the document read that the authorities expect the free land handover to attract more people to the Far East Federal District, to slow or stop the outward migration of locals and to boost the socio-economic development of the territory.

[TsarSamuil]

Russian Far East region allocates half million hectares for free land handover program.

RT.com
25 May, 2016 09:40

Property minister of the Amur Region in the Russian Far East has told reporters that the authorities had allocated 500,000 hectares of land for the free handover to anyone willing to start a business in agriculture or tourism.

“We have allocated 500,000 hectares of planted forests and 50,000 of agricultural lands for the program. Of the 50,000 hectares, about one third is tilled soil, the rest are pastures and hayfields,” Sergey Khovrat was quoted as saying by RIA Novosti.

The minister also told reporters that so far only 10 people had announced their interest in the free land handover program, all of them beekeepers who already owned some land in the region.

The Amur Region launched its own free land handover program in March 2015. It is slightly different from the federal Russian program that offers free land in the Far East and Siberia. In particular the size of land plots is bigger – 2.5 hectares for private use and up to 20 hectares for a commercial farm, as opposed to a flat 1 hectare for everyone under federal rules.

Earlier this month, President Vladimir Putin signed a law introducing the free handover of land in the Far Eastern regions to Russians and foreigners who want to build homes or start businesses in agriculture or tourism. Russian authorities expect the land giveaway to attract more people to the Far East Federal District, to slow or stop the outward migration of locals and to boost the socio-economic development of the territory.

The bill provides for the free handover of 1 hectare (about 2.5 acres) of land to anyone who applies for the program. However, foreign citizens will only be allowed to utilize the land, not own it outright. Registration of full property rights is only possible after the naturalization of potential owners.

In mid-May this year, MP Sergey Obukhov of the Communist Party proposed to expand the program not only to the Russian Far East, but also to much larger territories in Siberia.

“If the government bill on free land handover has been signed into law, we suggest that it should be expanded to the territory of Siberia already today. These two macro-regions must become pilot grounds and the collected experience could be later used on the whole territory of our country,” he told reporters. “One of the possible ways to restart the cultivation on unused lands is to give these lands top citizens who want to work in agriculture. I assure you, we will find enough of them.”

According to the official land register, Russia currently has about 198 million hectares of agricultural land, and at least 28 million of this is state-owned and unused.

[TsarSamuil]

Russia gives away first free land in Far East.

RT.com
1 Jun, 2016 10:01

The first three families in Russia's Amur region have received their free hectares of land under the program aiming to develop the country's Far East. The region’s Arkharinsky district, which borders China, was chosen as the pilot area for the initiative.

"The first three applications were received from residents in the area, which for many years engaged in beekeeping. District authorities have already approved the layout of the land, and property boundaries have been registered," a spokesperson for the local property authorities told Interfax.

Another two applications are being processed; one of them is a collective application from three families also involved in beekeeping.

The Arkharinsky district is located at the junction of the border with China and with Russia’s Jewish Autonomous Region. The district is crossed by the Trans-Siberian railroad and the Chita-Khabarovsk federal highway.

The area has 50,000 hectares of agricultural land and 500,000 hectares of forest.

The governor of Yakutia, another region included in the program, announced that in addition to the hectare of land offered by the state, his region will provide another 2.5 hectares to anyone interested. Yakutia is known for its severe climate and the coldest temperatures recorded in the Northern Hemisphere at −71.2 °C (−96.2 °F) in 1926.

In April, the Russian State Duma adopted a law allowing Russians the right to claim a free hectare (10,000 square meters) of land in the Far East. The areas include Yakutia, Kamchatka, Chukotka, Primorye, Khabarovsk, Amur, Magadan, Sakhalin and the Jewish Autonomous Regions. The land can be used for any lawful purpose and the new owners cannot rent, sell, or give away the land for five years.

[TsarSamuil]

1 in 10 Russians ready to claim free land in Far East.

RT.com
3 Jun, 2016 14:13

About nine percent of Russians say they want to move to the Far East under a state-backed program of giving away one hectare of free land to populate and develop the region.

Research from headhunting website Superjob.ru suggests besides those who are ready to move to the Far East, 22 percent of Russians are thinking about the possibility.

A third of respondents to the survey said they are not ready to move, and another third did not respond.

However, the poll showed Russians are not very familiar with the program. About half of the respondents said they had never heard about the state offering free land in the Far East. The most unaware of the program were those with a low monthly income (less than $375), two-thirds of whom had no idea what the question was about.

Young people's awareness of the program was the lowest, but their willingness to get a free hectare was the highest at 14 percent. In contrast, the older generation was the most knowledgeable about the program, but only four percent said they were ready to move.

Overall, the respondents said the state should develop the Far East in order to “to prevent the Chinese from developing our lands.” The people were worried about the remoteness, the high cost of moving, the lack of infrastructure, the potential harm to the ecology of the region and some of them showed a general distrust of the authorities.

This week, the first three families received their free hectares in Russia's Amur region. The region’s Arkharinsky district, which borders China, was chosen as the pilot area for the initiative.

In April, the Russian State Duma adopted a law allowing Russians the right to claim a free hectare (10,000 square meters) of land in the Far East. The areas include Yakutia, Kamchatka, Chukotka, Primorye, Khabarovsk, Amur, Magadan, Sakhalin and the Jewish Autonomous Regions. The land can be used for any lawful purpose and the new owners cannot rent, sell, or give it away for five years.

[TsarSamuil]

‘Merkel, Be Tough! Don’t Give up! Don’t Lift the Sanctions!’ – Russian Farmer.

Ten more years of import restrictions will consolidate the recovery of Russian agriculture

RI
Oleg Sirota (Komsomolskaya Pravda) Wed, Jun 1

Originally appeared at Komsomolskaya Pravda. Translated by Julia Rakhmetova

The author is a Russian farmer whose business grew following the mutal sanctions between Russia and the EU. He rejoiced at the news that the Russian government prolonged food counter-sanctions. He explains why in this letter he sent to Komsomolskaya Pravda, Russia’s most popular daily newspaper.


“Dmitry Medvedev, thank you! I totally support the government’s decision to prolong the sanctions for eighteen months. This is very good news! I even wanted to write to Merkel (Not my female-goat, the other one who lives in Germany): “Merkel, hang in there! Don’t give up! Don’t remove the sanctions! I haven’t finished repaying the loan on my cheese factory and cowshed.”

What does this bring me (not only me but everyone investing in agriculture)? Confidence! As soon as I heard the announcement, I got the courage to expand production, I felt free to order a three-ton cheese vat. And a fancy press. Before I hesitated – "Is it worth it?" – and now I finally decided to do it. I’m also ordering a new thermostatic box for yogurt and a new yogurt maker, and planning to set up a special van for deliveries – sales volume of yogurt keeps growing and I’ve expanded to Mitino (a district in Moscow) and the Dorogomilovsky market. I don’t need to think twice!

As for farm construction, the government has already issued me the subsidy I recently won. You can joke about it, but the Medvedev government found money for the "Family Farm" program after all. So I’m officially declaring that I’m starting a cowshed on Monday!

Besides building a cowshed, I need to expand the cheese factory promptly and dig new cellars – I’m planning to double production space, but I need the money. I will shake it out of the bank and get government compensation for the interest. That’s hard – getting a government subsidy turns out to be much easier than getting bank credit.

I wish the government would further reduce interest rates for agricultural manufacturers, like in Germany. My German colleague Gunter still thinks I’m joking when I tell him that interest rates for bank loans for farm construction are 20%. He says 1.5% is already high.

I’m also longing for the prolongation of the sanctions not, just by 1.5 years but by 5-7 or even 10 years.”

[TsarSamuil]

Russia Becomes World’s No. 1 Grain Producer, Leaves US, Canada Behind.

Sputnik
RUSSIA 12:27 16.06.2016

According to the US Department of Agriculture, Russia now leads the US in the volume of grain exports, with 35 million tons exported in 2016, which is 3.5 million more than America US did, and exceeds by 2 million tons Canadian exports.

In 2014, the US was the world’s No. 1 grain exporter, followed by Canada and Russia, which has now moved to the first place.

Russia sells grain to 130 countries, above all Egypt, Turkey and Iran. This country’s grain exports considerably increased in 2002 making it one of the top ten grain exporters around.

In 2016 Russia, for the first time in its modern history, topped the list of the world’s leading grain exporters.

“A strong US dollar did play a part in this adding to the cost of US grain exports and enabling Russia to clinch deals to sell wheat to such traditional buyers of American grain as Nigeria and Mexico,” Russian Grain Union Vice President Alexander Korbut told Sputnik.

Korbut said that, barring bad weather, Russia was likely to maintain its lead into the next year.

Russia expects to take in some 64 million tons of wheat with the total grain harvest estimated at between 106 and 111 million tons.

This means that this year’s harvest could exceed the previous record of 108.2 million tons taken produced in in 2008.

This is a recurring trend across most of the agricultural sectors with poultry and pork meat production accordingly tripling and doubling since 2006.

Western economic sanctions, imposed on Russia over its alleged role in the armed conflict in eastern Ukraine, have played right into the hands of Russian farmers.

In 2015 the export of excessive agricultural produce earned Russia a record $20 billion, more than the sale of arms. Simultaneously, food imports dropped by a hefty 40 percent.