Simplifying Agricultural Land Leasing
The Legislative Chamber of Oliy Majlis in Uzbekistan has recently considered and approved new bills related to agricultural land. One of the key points of these bills is the ability to lease farmland for secondary leasing, or subleasing.
The revised draft law allows for the sublease of land along field boundaries, canals, and irrigation structures for up to 10 years. This land can be used for planting suitable crops, such as mulberry trees. The Land Code will now include a rule allowing plots of up to 10 hectares to be subleased to sericulture farms, agro-industrial clusters, and other legal entities.
Another bill that was discussed in the first reading aims to improve the procedure for leasing land for agriculture. Under this bill, tenants will be selected through online electronic auctions. Additionally, tenants will have the right to transfer the rights to the plots provided to them to other individuals. This flexibility will enable tenants to use the leased land as collateral for loans, as the plots can be sold at online auctions in case of default while maintaining their agricultural purpose.
The adoption of these laws is expected to simplify the turnover of farmland by introducing market mechanisms. Deputies believe that allowing the transfer of land rights will turn farmland into a marketable asset. These changes mark a significant step towards modernizing the agricultural sector in Uzbekistan.
