New land use efficiency measures reviewed

Over the past five years, systemic work has been carried out in the country to reform land relations. In particular, the powers of khokims to allocate land have been abolished, and the sale of land plots has been transferred to an auction-based system. During this period, 616.3 thousand hectares of land were distributed through auctions, and 1.4 trillion soums were received by the budget. Most importantly, thanks to the emergence of real landowners, income per hectare has tripled, reaching 50–60 million soums. Today, these lands annually produce goods worth 539 trillion soums and generate exports of $2.1 billion.

However, a number of issues in this area still require resolution. In particular, although land is allocated through auctions, the autonomy of tenants in its use remains limited. As a result, 117.6 thousand hectares of land have not yet been sold.

In this regard, it is planned to introduce a new system for leasing agricultural land, as well as to auction an additional 100,000 hectares under revised conditions this year. Particular attention will be paid to strengthening economic incentives for the efficient use of land in this process.

It was emphasized that the practice introduced last year of independently planting agricultural crops on acquired land in the Fergana Valley, Jizzakh, and Tashkent regions, as well as in Karakalpakstan, has yielded positive results. In particular, entrepreneurs planted high-yield and export-oriented crops of their choice on 16,000 out of 20,000 hectares, creating a basis for $150 million in exports in 2025. The importance of expanding this practice and granting land users greater economic freedom was noted.

For industrial plantation and livestock projects, it is planned to auction land plots ranging from 50 to 500 hectares. On this basis, at least five large-scale projects are expected to be launched in each region this year. To support their implementation, a range of financial measures is envisaged, including covering the costs of water and electricity supply, providing preferential loans for up to seven years with a three-year grace period, compensating loan interest rates, and subsidizing up to 50 percent of packaging costs for the produce.

During the presentation, particular attention was also given to the broad application of advanced international experience to enhance land profitability, especially through the adoption of modern agrotechnologies. At the same time, it was emphasized that national interests must be safeguarded in this process.

In particular, the procedures and conditions for granting agricultural land to foreign investors will be revised. In the future, such land will be accessible to them exclusively through a secondary lease mechanism via directorates under regional khokimiyats, for projects with an investment volume of at least $10 million and subject to the development of pasture, rain-fed, and unused lands.

Furthermore, it was emphasized that only local farmers and entrepreneurs may participate in agricultural land auctions. Lands designated for defense, border, historical-cultural, and forest use will be allocated exclusively to citizens of the country. At the same time, it was proposed to establish a unified lease term of 49 years for all types of land, including for foreign investors implementing industrial and construction projects.

The lease terms for nearly 100,000 hectares of land are approaching expiration. In this regard, entrepreneurs have raised the need for a convenient and transparent procedure for extending leases without re-auctioning such plots. At the presentation, it was proposed to carry out this process through public service centers and electronic platforms, to integrate the information systems of the cadaster, agriculture, and justice agencies, and, in the absence of objections, to extend leases for agricultural land for up to 30 years and for non-agricultural land for up to 49 years. It was noted that lease agreements will not be extended for a new term in cases of tax or rent arrears, legal disputes, or instances of unauthorized construction.

It was critically noted that processes related to changing land categories and calculating compensation for losses are still conducted on paper. This leads to delays in approvals and final decision-making, causing dissatisfaction among investors. In this regard, the task was set to digitize all processes and introduce a system for evaluating land use efficiency based on criteria such as intended use, water-use efficiency, and soil quality.

The need to expand the use of land lease rights as a financial instrument was also noted. In particular, it was proposed to create conditions for their use as collateral not only for obtaining commercial loans but also for leasing, mortgages, and bank guarantees. Furthermore, it was proposed to simplify the procedure for recognizing land plots as vacant, as well as to clearly define the possibility of concluding secondary lease agreements on both a paid and unpaid basis. Based on this, it was also proposed to review measures of criminal liability for offenses related to the illegal turnover of land plots.

In addition, particular attention was paid to strengthening accountability in the area of land control. In particular, the need to extend liability for unauthorized land occupation not only to irrigated land but also to all other categories of land was emphasized. It was also proposed to exempt projects from compensation for losses arising from changes in land categories for the construction of railways and roads, airports, airfields, air navigation facilities, and water management infrastructure, and to exempt compensation payments from taxation when land is expropriated for public needs.

It was emphasized that, going forward, services for agricultural land tenants will be delivered through 13 regional directorates, while support for entrepreneurs implementing investment projects on non-agricultural land will be provided through 14 investment companies. These structures are intended to serve as a connecting link between government bodies and entrepreneurs.

The Head of State gave relevant instructions to responsible officials to take land reform to the next stage, increase the efficiency of land use, create an even more open and clear system for entrepreneurs, and accelerate the digitalization of the sector.