Russian-farmland.com
Support of agricultural business for foreignersBuying Agricultural Land in Russia is a Profitable Investment
Promising investments do not depend on market fluctuations, new trends in the economy, or luck. Therefore, while calculating long-term and stable profits, money should be invested in agriculture. The land and its harvest will always cost a lot. People need bread, meat, milk, and vegetables at all times. Even digital technologies cannot be compared to the agro-industrial complex.
In Russian agricultural industry, business potential has not yet been revealed to the full. All over the world, the countries are running out of the fertile land, but we still have it, and it is sold on favorable terms.
- Farmland is highly demanded in Russia and beyond;
- Government supports this business area;
- Such projects are environmentally friendly and innovative to certain extent.
There are many options for investment that offer a lot of opportunities for increasing production. Investors obtain promising land as well as receive high-quality documents and short payback periods. However, the main benefits of investing in the agro-industrial complex lie not only in these aspects.
Why is it Worth Investing in Agricultural Land Right Now?
The major benefit is the long-term prospects. Products of this industry are constantly growing in price. Of course, there are seasonal fluctuations, but in general, the cost increases on an annual basis. Products that are grown without chemicals in ecologically clean regions are especially valuable. It is also worth remembering about the relentless growth in demand for agricultural products. It is proportional to the increasing number of people in the world. But why should we invest in the land right now?
Today, agricultural producers receive tax benefits in Russia.
- In the agricultural complex, a transition to a special tax treatment is possible. According to this tax regime, the tax rate does not exceed 6%;
- Business representatives in this area are exempt from transport tax and other fees;
- Farmers receive partial reimbursement of costs related to fuel, fertilizers, and seed (from federal or regional authorities).
This is the only business sector in the country where such favorable tax conditions are available.
It is easier for investors to attract borrowed funds.
- Regional authorities and the state subsidize the cost of loan servicing;
- More freedom is given in finding financial sources for agricultural projects.
Agricultural producers receive favorable quotas. For instance, consider the state duties on the export of meat (15% in comparison with 30-60%, which are charged for import).
Additional methods of obtaining profits. Investors receive income from the resale of land or use it as collateral when getting a loan from the bank.
There exist other, less obvious, benefits of investing in agricultural land in Russia. For example, they may include receiving subsidies from the state or being provided with the other preferential terms offered to the companies in this sector. It is necessary to take into account the steady increase in the cost of grain in the world market. And this involves the direct income from the export of raw materials abroad.