1. NEW TRENDS IN DEVELOPMENT OF LAND CONSOLIDATION IN RUSSIA
ALEXANDER SAGAYDAK
ANNA SAGAYDAK c
® All rights reserved

2. INTRODUCTION Voluntary Guidelines on the
Responsible Governance of Tenure of Land, Fisheries and Forests
in the Context of National Food Security

3. The VG
Where appropriate, States should recognize and facilitate fair and transparent sale and lease markets as a means of transfer of rights of use and ownership of land, fisheries and forests.
Where markets in tenure rights operate, States should ensure that all actions are consistent with their existing obligations under national and international law, and with due regard to voluntary commitments under applicable regional and international instruments.
Transactions of tenure rights to land, fisheries and forests should comply with national regulation of land use and not jeopardize core development goals.

4. The VG
Where appropriate, States may consider land consolidation, exchanges or other voluntary approaches for the readjustment of parcels or holdings to assist owners and users to improve the layout and use of their parcels or holdings, including for the promotion of food security and rural development in a sustainable manner. States should ensure that all actions are consistent with their obligations under national and international law, and with due regard to voluntary commitments under applicable regional and international instruments, and ensure that participants are at least as well off after the schemes compared with before. These approaches should be used to coordinate the preferences of multiple owners and users in a single legitimate readjustment.

5. Land Consolidation
Land Consolidation is a merging, enlargement, eliminating of mosaic land ownership and improvement of configuration as well as optimization of size of land plots in order to increase the efficiency of agricultural production via rational use of scare resources: land, labor and capital based on reduction of transaction costs.

6. Land Consolidation Objectives
Increasing the efficiency of agricultural production; providing sustainable development of agrarian sector; rational use of land, labor and capital in agriculture; optimization of agricultural production structures; increasing the competitiveness of agricultural producer; environmental protection.

7. Land Consolidation Principles
Voluntariness; openness and transparency; financial and economic feasibility; taking into account the interests of the population groups involved including women and youth as well as indigenous people; step by step implementation; consideration of local conditions; state and NGO support.

8. Land Consolidation Models
In theory, Agricultural Land Consolidation can be carried out as:
Voluntary Land Consolidation;
Compulsory Land Consolidation.

9. Land Categories, Russian Federation, 2013-2014 , million hectares

10. Agricultural Land, Russian Federation, 2000-2014, million hectares

11. Land Tenure, Russian Federation, 2014

12. Agricultural Land Tenure, Russian Federation, 2014

13. Land Use Area of Parastatals, Russian Federation, 2014, 1000 hectares

14. Private Land Use Area, Russian Federation, 2014, 1000 hectares

15. Private Farms, Russian Federation, 1995-2014
Number of farms, 1000
Total Land Area, 1000 ha
Average Land Size, ha

16. Agricultural Holdings, Russian Federation, 2014
Name
Cash Flow, bln.rubles %
Net Income, bln.rubles
Agricultural Land Area,1000 ha
Mirotorg 74
15.1
16.4
23.7
594
17.2
Cherkizovo
68.99
14.1
13.3
19.2
100
2.9
Efko
61.4
12.5
.86
1.2 -
Rusagro
59.1
12.1
20.2
29.2
Agro-Belogor’e
57.6
11.8
5.99
8.6
110
3.2
Prodimex+Agrokultura
41.3
8.4 .7
1.0
790
22.8
Youg Rossii
37.6
7.7
1.4
2.0
200
5.8
Prioskol’e
33.0
6.7
4.9
7.1
106
3.1
Ak bars
29.9
6.2
1.5
2.2
505
14.6
Agrokomplex
26.5
5.4
4.0
456
13.2
Total
489.39
100.0
69.25
3,455

17. Land Market Transactions, Russian Federation, 2007-2012, number of transaction/hectares
Item
2007
2010
2011
2012
Total
4,519,093 /
115,843,859
5,321,798/
159,061,489
5,244,936/
192,725,762
5,792,019/
203,399,619
Leasing of state and municipal owned lands
3,628,109 /
114,103,370
3,403,608/
138,576,736
3,254,244/
159,420,525
3,424,018/
156,923,677
Buying and selling of lands by citizens and legal entities
405,670 /
560,286
917,354/
4,706,821
908,867/
7,787,562
1,130,449/
20,886,379
Land Granting
49,715 /
126,596
159,134/
4,733,135
189,043/
4,899,058
218,811/
2,260,221
Land Heritage
162,151 /
336,092
346,227/
5,089,960
410,125/
10,244,033
460,247/
13,747,792
Land Mortgage
25,907 /
198,856
83,743/
1,786,080
109,055/
3,553,569
148,932/
2,447,216

18. Land Mortgage Transactions, Russian Federation, 2012, million hectares
Land owned by citizens and legal entities-
total
including
Mortgaged Land %
Mortgaged AgriLand
133.0
2.4
1.8
2.0
82.8

19. Average size of Land Market Transaction, Russian Federation, 2007-2012, hectares
Item
2012
2007
2012/2007,%
Total Transactions
35.1
25.6
137.1
Leasing of state and municipal owned lands
45.8
31.4
145.9
Selling of rights of leasing of state and municipal owned lands
179.0
10.8
16.6
Selling of state and municipal owned lands
2.5
1.6
156.2
Buying and selling of lands by citizens and legal entities
18.5
1.4
13.2 times
Land Granting
10.3
4.1 times
Land Heritage
30.0
2.1
14.3 times
Land Mortgage
16.4
7.7
2.1 times

20. Orel Oblast Flag and Emblem

21. Orel Region (Oblast) Location on the territory of the Russian Federation

22. Orel Oblast Map

23. Orel Oblast Land Categories, 2015

24. Orel Oblast Land Categories, 2008-2015, 1000 hectares

25. Orel Oblast Land Tenure, 2015
State and Municipal Ownership
40%
986,800 ha
986,
Private Ownership
49.4 %
1,216,700 ha
49.449
Ownership of Legal Entities
10.6%
261,700 ha

26. Orel Oblast Agricultural Land Tenure, 2015

27. Private Agricultural Land Ownership, Orel Oblast, 1990-2015
Area, 1000 ha

28. Private Land Use Area, Orel Oblast, 2015, 1000 hectares

29. Land Use Area of Parastatals, Orel Oblast, 2015, 1000 hectares

30. Agricultural Land Shares Area Rented, Orel Oblast, 2015, 1000 hectares

31. Average Agricultural Land Share Size, Orel Oblast, 2016, hectares

32. Private Farms, Orel Oblast, 1991-2015

33. Total and Cropland Area of Private Farms, Orel Oblast, 1991-2015, 1000 ha

34. Private Farms, Orel Oblast, 1994-2015
Item
1994
2000
2010
2013
2014
2015
2015/
1994,%
Number of farms
1,754
1,420
1,247
1,293
1,302
1,292
73.7
Total land area, 1000 hectares
89.2
124.6
177.5
196.2
198.2
201.0
225.3
Average land size, hectares
50.8
87.7
142.3
151.7
152.2
155.6
306.3

35. Number of transactions/hectares
Land Market Transactions, Orel Oblast, number of transaction/ hectares
Item
Number of transactions/hectares
Total
Including
Urban Land
Industrial Land
Agri Land
Selling of state and municipal owned lands
2,400/
87,589
1,455/1,198
117/5
828/86,386
Selling of lands by citizens and legal entities
3,913/
131,690
2,970/
1,126
 5/2
938/
130,562
Leasing of state and municipal owned lands
9,781/
118,789
8,452/
4,212
155/
268
1,174/
114,309
Other transactions, total
including:
6,658/6,049
6,417/1,424
39/178
202/4,447
Land Granting
2,630/1,007
2,533/562
18/5
79/440
Land Heritage
3,892/1,582
3,804/797
9/2
79/783
Land Mortgage
136/3,460
80/65
12/171
44/3,224
22,752/
344,117
19,294/7,960
316/453
3,142/
335,704

36. Land Auction Price Model

37. Agricultural Land Cadastral Values, Starting Agricultural Land Auction Prices, Agricultural Land Mortgage Values, Agricultural Land Tax Rates and Contract Land Rent Rates, Orel Oblast, 2015
Districts
Agricultural Land Cadastral Value, rub/ha
Starting Agricultural Land Auction Price, rub/ha
Agricultural Land Mortgage Value,
rub/ha
Agricultural Land Tax Rates,
Contract Land Rent Rates,
Bolhovsky
108,500
47,638
33,347
143
200
Verhovsky
129,300
56,771
39,739
170
238
Glazunovsky
124,300
54,575
38,203
164
229
Dmitrovsky
90,800
39,867
27,907
120
167
Dolzhansky
135,300
59,405
41,583
178
250
Zalegochshensky
118,500
52,029
36,420
156
218
Znamensky
123,300
54,136
37,895
162
227
Kolpnyansky
131,700
57,824
40,477
173
243
Korsakovsky
121,700
53,434
37,404
160
224
Krasnozorensky
135,800
59,624
41,737
179
Kromskoy
110,600
48,560
33,992
146
204
Livensky
130,600
57,341
40,139
172
241
Maloarhangelsky
126,000
55,322
38,725
166
232
Mtsensky
98,200
43,116
30,181
129
181

38. Agricultural Land Cadastral Values, Starting Agricultural Land Auction Prices, Agricultural Land Mortgage Values, Agricultural Land Tax Rates and Contract Land Rent Rates, Orel Oblast, 2015
Districts
Agricultural Land Cadastral Value, rub/ha
Starting Agricultural Land Auction Price, rub/ha
Agricultural Land Mortgage Value,
rub/ha
Agricultural Land Tax Rates,
Contract Land Rent Rates,
Novoderevenkovsky
131,200
57,605
40,323
173
242
Novosilsky
112,400
49,350
34,545
148
207
Orlovsky
125,200
54,970
38,479
165
231
Pokrovsky
131,700
57,824
40,477
243
Sverdlovsky
134,800
59,185
41,430
178
248
Soskovsky
100,500
44,126
30,888
132
185
Trosnyansky
104,500
45,882
32,117
138
193
Uritsky
109,700
48,165
33,715
144
202
Hotynetsky
103,700
45,531
31,871
136
191
Shablykynsky
100,200
43,994
30,796
Average
120,700
52,995
37,096
159
222

39. Conclusion
The following measures must be implemented to strengthen the organizational as well as institutional sustainability of Land Consolidation in the Russian Federation:
Land Consolidation Legislation must be revised and improved both at federal as well as regional level;

40. Conclusion
The institutional framework for implementation of Land Consolidation must be improved both at federal as well as regional level too;
The Land Auctions must be introduced to stimulate development of Agricultural Land Market and Land Consolidation in regions of the Russian Federation;

41. Conclusion
The training and retraining programs related to Land Consolidation issues must be introduced;
The public relation campaign to strengthen people’s ability to understand the role and importance of Land Consolidation Development must be initiated;
The pilot projects focused on Land Consolidation Development should be launched in some regions of the Russian Federation to make demonstration effect;

42. Conclusion
The Land Consolidation Development experience should be collected, scrutinized and disseminated;
Orel Oblast Agricultural Land Consolidation experience should be scrutinized and replicated in other Russian regions.

43. You can find more developments on that on:
as well as

44. Sources:
The Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, FAO, Rome, 2012;
The Federal Law of the Russian Federation issued on July 3, 2016, # 354-FZ "On amendments to certain legislative acts of the Russian Federation to improve the procedure for seizure of land plots from lands of agricultural purpose when they are not in use for the intended purpose or use in violation of the legislation of the Russian Federation";
The Federal Law of the Russian Federation issued on June 23, 2014, # 171-FZ “On amendments to the Land Code of the Russian Federation and certain legislative acts of the Russian Federation”;
The Order of the Ministry of Economic Development of the Russian Federation issued on September 1, 2014, # 540 "On the approval of the classification of types of permitted use of land»;

45. Sources:
The State (National) Report on the Status and Use of lands in the Russian Federation in 2014, Rosreestr, 2015;
The Regional Report on the Status and Use of lands in Orel Oblast in 2015, Orelreestr, 2016;
The Regional Report on the Status and Use of lands in Orel Oblast in 2014, Orelreestr, 2015;
The Regional Report on the Status and Use of lands in Orel Oblast in 2013, Orelreestr, 2014;
The Decree of Government of Orel Oblast dated December 26, 2014, #436 “On Approval of Cadastral Value of Agricultural Land”;
Vedomosti daily dated August 8, 2016;
Oryol Oblast, Wikipedia, the free encyclopedia.

46. Thank you