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Support of agricultural business for foreignersThe Cost of Agricultural Land in Russia
In Russia, there exists a special unit for measuring land size. This is a hectare. The price of farmland is calculated based on it. However, a hectare (the abbreviated form is ha) was not included in The International System of Units, therefore, it is worth being attentive when preparing legal documents. One hectare is approximately equal to 2.5 acres.
What Criteria are Used to Calculate the Price for Agricultural Land Plots?
There are two types of land value such as cadastral and market ones.
The total amount is defined by many factors. The most significant ones include the following:
- soil quality and typology in case of a heterogeneous land plot;
- the variety of crops grown on the land plot;
- permissible rotation of different types of crops;
- estimated yield of a particular crop;
- the cost of growing plants in a particular area;
- maximum rate of income, taking into account the funds spent.
It is also necessary to consider different measures to maintain soil fertility. There are other factors that apply to all types of land.
For example, the price will be defined based on the location of a land plot in relation to the populated areas, the availability of developed infrastructure, industrial enterprises, and restrictions on the usage of a plot. The costs of registering the boundaries of the territory, the state of the plot, as well as its location in the area will be taken into account when the price is calculated.
Experts of our company will do all the calculations for you providing ready numbers. We will select the plot with the best price possible, prepare all the documents, achieve the appropriate price, or find the operating business. It is just necessary to set the task, and we will realize it with pleasure.
What is the Average Price for the Agricultural Land in Russia?
Prices mostly depend on the region. In addition, there is a significant difference in the prices of the land for industrial or agricultural use. The cost of land is established for one hectare.
- 1. The most expensive territories in the list of Russian agricultural lands are the plots located in Southern Russia (Krasnodar Territory, Rostov Region, and Stavropol Territory). The price ranges from $2,500 to $5,000 per hectare or from $1,000 to $2,000 per acre.
- 2. The best lands with black soils are located in the area of the Central Black Earth Region (Belgorod region, Voronezh region, Tambov region, Lipetsk region, and Kursk region). Price ranges from $2,000 to $5,000 per hectare or from $800 to $2,000 per acre.
- 3. The most interesting region for investment is the middle zone of Russia (the territory around the Moscow region). The region consists of good fertile land, but this is not black soil. The average annual temperature here is significantly lower than in the south of Russia, but high level of precipitation makes it possible to collect excellent harvest. This territory includes Tula region, Oryol region, Kaluga region, Smolensk region, Ryazan region, Vladimir region, Yaroslavl region, where the cheese of very high quality is produced, Kostroma region, where good cheese is also cooked, Tver region with lush grass where fodder grasses and flax are grown, Vologda Oblast, where the Vologda oil, which is the most famous oil in Russia, is produced, etc. The cost of land plots is much lower here. The price ranges from $1,500 to $3,500 per hectare or from $600 to $1,400 U.S. dollars per acre.
- 4. The next interesting area is the Volga region which includes the lands in the floodplain of the Volga River. These territories are good for forage crops as well as grain, and oil crops, but the yield here is lower than in the Central Black Earth Region. These territories comprise of the Samara Region, the Penza Region, the Saratov Region, the Astrakhan Region, the Ulyanovsk Region, and the Nizhny Novgorod Region. The price ranges from $1,200 to $3,000 per hectare, or from $500 to $1,200 per acre.
- 5. The north-western region also has a high investment potential. There are poor cereal yields, but this area is just an ideal place for the production of forage crops, as well as flax. These territories include Novgorod region, Pskov region, and Leningrad region. The price is from $1,000 to $2,500 per hectare or from $400 to $1,000 U.S. dollars per acre. On the territory of Russia, there exist even cheaper lands in the Urals or in Siberia, but they are not so attractive for investments due to the remoteness from the major centers with the large population (large number of consumers) and weak infrastructure, which increases the cost of goods’ transportation and exporting them to the other countries.
We will check the appropriate options to ensure that the price corresponds to the actual state of affairs, reduce the cost of land to reasonable limits, prepare the contract, and bring the deal to a successful conclusion.