Uzbek Government Revolutionizes Agricultural Land Leasing

The right to lease agricultural land is to be realized through an electronic online auction, as outlined in the draft resolution. The procedure involves using the E-lease information system to form and agree on information about available land plots for agriculture.

Projects for the effective use of agricultural land are prepared and reviewed through the E-lease system in collaboration with relevant ministries and agencies. Once approved, these projects are sent to the E-auction electronic trading platform for the online auction of agricultural land plots.

If a plot doesn't receive bids in consecutive auctions, it may be reformed, changing its size or specialization based on demand, and auctioned again online.

Agricultural land plots are auctioned with an initial annual rent price, determined according to the prescribed normative value. Annual rent payments, based on the inflation rate, are paid in equal shares by April 15 and October 15 each year.

If a land plot remains unused for two years or water-saving technologies aren't introduced within three years of winning the auction, penalties are applied – doubling the fixed tax rate and fixed water tax rate, respectively.

Before signing the lease agreement, the auction winner must pay 10% of the offered fee, with the remaining 50% of payments allocated to the state budget and 50% to the Agricultural Development and Food Supply Fund under the Ministry of Agriculture.

Funds obtained from leasing land through online auctions are strictly directed towards investment and social infrastructure development programs in the relevant area. This includes improving irrigation systems, promoting modern irrigation, and financing the creation of infrastructure for water-saving technologies. The funds also support institutional development in land management, the introduction of scientific innovations in agriculture, skill improvement, and the rational use of land and water resources.