What is the Average Farm Size in Russia?

Over the past decades, the total area occupied by farmers has increased by two and a half times. Large farms absorb small companies, increasing the volume of goods produced. Many companies are shifting from production to processing their own products, and this involves the added value.

Large agribusinesses cover an area of up to 8,000 hectares of land (or about 20,000 acres) and approximately two-thirds of this land bring impressive harvests. So these companies started to actively process their own products, manufacturing semi-finished or finished products from them.

As for the large farms in the agrarian complex, their average area reaches 4 thousand hectares (this equals to 10,000 acres). At the same time, microenterprises that are the parts of these companies are not taken into account. On average, personal farms hardly reach the size of 0.8 hectares (2 acres), while small farms occupy 240–280 hectares (or 600–700 acres).

Large agricultural producers often locate their facilities in more than one region and can occupy up to 400,000 hectares (or 1,000,000 acres). And the size of small companies depends on their location, climate, and soil fertility. So in the territories with the mild climate, unlike in the northern or central regions, small areas are enough for growing crops. We will select the best land plot or find an operating business helping you to register it. Our lawyers will prepare all the documents, agree on the price, and provide full support of the transaction.

In the agrarian economy of the country, the farm has a high dynamics of development, in comparison with other sectors of the industry. Today in Russia, there are approximately 250 thousand households that increase supplies to the agricultural market on an annual basis. The number of entrepreneurs engaged in growing various crops, breeding poultry or animals is also increasing.

Most of the peasant farms are located in the Krasnodar Territory, which is among the leaders in terms of soil fertility compared to other regions. More than 14 thousand peasant farms are located here. In the Stavropol Territory, there are a little more than 11 thousand farms, and in the Rostov Region, there are about 8 thousand. These numbers include both large enterprises with huge areas and livestock, and small entrepreneurs.

Such diversity is fully justified, given the state support that Russian farmers receive. Apart from other things, impressive tax benefits are also provided. For example, a single agricultural tax paid by peasant farms does not exceed 6% while the rest of the business representatives contribute to the budget of the country 20% of their profits. However, the situation in the area of farms is far from being stable. Farmers do not have the opportunity to apply advanced technology due to the fact that after the collapse of the USSR, there was no active scientific development in the area of agricultural technologies, new varieties of plants, and agricultural technology in the country.