Subsidies for personal subsidiary farming. How the state supports LPH
Over the past few years, in connection with the policy of import substitution, the state has been actively supporting the development of Agriculture in the country. This trend was also picked up by banks, issuing specialized loans for the development of farming. A loan for agriculture in "Rosselkhozbank" can be obtained at the most favorable terms, because it is one of the leading banks in this area.
Features of the loan for the development of personal subsidiary plots in the "Rosselkhozbank"
State support for agriculture has led to a decrease in interest rates on loans with a specific purpose. So, a loan for the development of a personal subsidiary farm implies loyal conditions for farmers and owners of subsidiary farms. It is presented in three forms:
- with collateral for agribusiness owners;
- without collateral (without collateral and guarantors);
- restructuring of loans for leading subsidiary plots.
The peculiarity of obtaining such a profitable loan is its target orientation. You can apply for a loan only for specific actions that will be indicated in the contract (purchase of equipment, grain, etc.). Moreover, the bank has the right to demand documentary evidence of the expense of the money received.
Lending objectives
There are several targeted options for obtaining a loan for agriculture, differing in terms and conditions.
Lending for a period of up to 2 years is carried out for the following purposes:
The loan is provided for a period from 3 months to 5 years for an amount of up to 1,500,000 rubles. Usually, the largest amounts are approved only by regular customers who have earned the trust of the bank by past cooperation or good credit history... Money is issued exclusively in rubles.
Basic loan conditions:
- lending for a period from 2 to 5 years;
- the presence of a guarantor (individual or company) and / or collateral;
- differentiated payments are possible, but in the absence of subsidies, only annuity payments are provided;
- a grace period of up to a year if the loan is issued for a short term, up to 2 years for a medium term;
- the standard rate is 13% (for a period of up to one year) and 15.5% (for a year).
There are also discounts and penalties in the form of additional interest. People who have a good credit history are highly regarded by the bank and are given a discount of 0.5% off base rate... As a penalty for violation of the terms of the annual life insurance, the rate increases by 6%. If the client refuses to provide documentation, which contains information about the purpose of the loan, the rate increases by 2.5%.
A loan application is considered up to 7 business days. The entire amount is transferred one-time to the details provided by the borrower within 45 calendar days after approval. Additional payments, commissions during the procedure are not charged. Payments are made monthly.
In order to obtain more detailed conditions and a complete list of documents required for receipt, to leave an application for consideration, you need to contact directly the bank branch in which it is planned to issue it.
Borrower requirements
Credit for the development of private household plots in the "Rosselkhozbank" is issued only to citizens Russian Federation, which fully comply with the following list of requirements:
- Age restrictions. The minimum age from which a loan can be issued is 23 years. Citizens under the age of 75 can apply for the receipt, for guarantors this age is only 65 years.
- If the client is an individual, then the time of his work at the current place should be more than six months. Full work experience must be more than 5 years.
- Permanent registration in the Russian Federation.
If the borrower receives a salary from Rosselkhozbank, then the minimum length of service in the current place drops to 3 months, and the total length of service to six months. If the borrower is a pensioner and receives a pension at Rosselkhozbank, the requirement for general seniority does not apply to him. If the applicant is running a private household, the period of his activity must be at least 1 year.
Income can be funds received from the following sources or as a result of the following activities:
- income that the borrower receives from his main job or part-time;
- profit from results entrepreneurial activity, intellectual work (fees for books, manuscripts, articles, etc.);
- profit from running private household plots;
- pension;
- profit from the rental of real estate.
All income not reflected in personal income tax certificates, must be confirmed by other official documents.
Required documents
In order for the lender to consider the application, and the chances of a positive decision have increased, the following documents must be collected:
- Certificate of income in the form of a bank;
- Extract from the household book;
- Application in the form of a questionnaire for the main borrower, co-borrowers and guarantors (if any);
- Personal subsidiary plots agreement;
- Appendix to the application with the provision of personal data.
By signing the agreement, the borrower undertakes to provide the bank with reports on target costs in the form of the following documents:
- All payment documents, which reflect transactions of sale and purchase of goods and services for a specific purpose (invoices, invoices).
- Checks, cash receipts confirmed by the company seal.
- If the product or service was purchased from natural person- acts of acceptance and transfer of goods.
- In the case of taking out a loan for the purchase of mechanical equipment, you need to mandatory provide the original of the TCP, the agreement for the purchase of equipment, the act of acceptance and transfer.
- In the case of the intended purpose of a loan for construction, renovation of premises, it is necessary to provide a certificate of ownership and all available accounting documents.
This list is not exhaustive, since each transaction is individual. The bank may require additional information to confirm the client's solvency and other information relevant to the approval of the application. Full list documents can be obtained from a credit specialist at any branch.
Features of servicing a loan for the development of private household plots
Monthly payment of the loan payment is possible in cash and bank transfer. Account replenishment without commission is made in one of the following ways:
- in cash through the cashier or self-service terminals;
- by using payment card released to bank account the borrower, through the cashier or self-service terminals;
- by transferring funds from any other account opened with Rosselkhozbank, including using a debit card.
If payment is made in foreign currency, it is converted according to the rate set in the bank on the day of payment.
In case of violation by the client of the terms of the contract, namely, in case of non-fulfillment of the obligations imposed on him, penalties will be applied. If no agreement is reached between the parties, the dispute is referred to the court.
Full consultation can be obtained at any branch of the bank, there is also the opportunity to leave an application, get a list of documents and guidelines for action.
It is written that the subjects of the Federation are given the right to set the limiting (maximum) sizes themselves. land plots provided for the maintenance of private household plots. And what is the mechanism for identifying and "weaning" excess acres? Can owners of private household plots expect any government assistance?
The federal law "On personal subsidiary plots" does not establish a mechanism for identifying super-large personal subsidiary plots and the procedure for eliminating violations by exceeding maximum size total area plots occupied by private household plots.
Apparently, in this case, in accordance with Article 6 Civil Code RF, in practice, the analogy of the law will be applied, that is, in translation from the legal language into a language understandable to everyone, they will apply laws regulating similar relations.
And in this particular case, one can focus on the norms of article 5 of the federal law "On the turnover of agricultural land", which establishes that if "the requirements of the maximum size of the total area of agricultural land plots are violated, which can be simultaneously owned by a citizen, his spouse and close relatives, and the owner does not alienate the excess area within a year, then the institution of justice ( registration Chamber) is obliged within ten days in writing notify the state authority of the constituent entity of the Russian Federation about this, which within a month is obliged to apply to the court with a statement to compel the owner to sell the surplus land. "
As for state support Private household plots, in this regard in the commented law there is a corresponding article 7, and entitled: "State and other support for personal subsidiary plots."
The article reads:
1. State authorities and bodies local government determine support measures for citizens who run their own subsidiary plots in the manner prescribed by the legislation of the Russian Federation.
2. State support for citizens running a personal subsidiary farm can be carried out in the following areas:
- formation of service infrastructure (access roads, communications, water and energy supply, etc.) and support for the activities of personal subsidiary plots, assistance in the creation of marketing (trade), processing, service and other agricultural consumer cooperatives;
- stimulating the development of personal subsidiary plots by creating organizational, legal, environmental and social conditions, including the provision to personal subsidiary farms and (or) agricultural cooperatives serving them and other organizations of state financial and material and technical resources on a returnable basis, as well as scientific and technical developments and technologies;
- measures to improve the quality of productive and breeding farm animals, the organization of artificial insemination of farm animals;
- an annual free veterinary examination of livestock, the organization of its veterinary services, the fight against infectious animal diseases.
3. Personal subsidiary farms are subject to state support measures provided for by the legislation of the Russian Federation for agricultural producers and carried out at the expense of federal budget, budgets of the constituent entities of the Russian Federation and local budgets.
4. State authorities of the constituent entities of the Russian Federation and local self-government bodies, within the limits of their powers, develop and implement measures for the development of personal subsidiary plots and the socio-economic development of rural settlements, within the framework of relevant programs determine the form, size and procedure for supporting personal subsidiary farms and those serving them agricultural cooperatives and other organizations ".
State support
Over the long-term practice of running private household plots by citizens, various forms of state and other support have been developed. Here are some examples.
In accordance with the decree of the President of the Russian Federation of June 7, 1996 No. 819 "On state support for gardeners, gardeners and owners of personal subsidiary plots", starting in 1997, funds were allocated from the federal budget for concessional lending the construction of residential buildings and the arrangement of land plots of private household plots, as well as the allocation of funds from the state leasing fund for the purchase of pedigree and draft cattle, agricultural machinery, inventory and equipment. This rule is valid to this day.
State support is also the exemption of owners of private household plots in whole or in part from taxes, contributions to extrabudgetary funds and payments in accordance with federal laws... So, according to subparagraph 13 of part 1 of article 217 Tax Code RF citizens are exempt from taxation income from the sale of products grown on personal subsidiary plots.
In addition, in accordance with Articles 6 and 8 of the Law of the Russian Federation "On Payment for Land" land tax on plots of private household plots within and outside the boundaries of rural settlements is equal to the tax levied on agricultural organizations, that is, its size is 10 times less than the tax levied on summer residents or from owners of land plots for individual housing construction. Within the boundaries of urban settlements for private household plots, the tax is equal to 3 percent of the land tax rates established in a particular urban settlement.
Relevant laws define benefits for income tax (tax deductions expenses for the acquisition of land plots, residential buildings, utility structures and buildings), tax on property located on the land plot of private household plots, payment for water intake for irrigation, etc.
The definition of "personal subsidiary plots (LPH)" means legislative form economic activity ... In turn, private household plots include numerous agricultural activities: raising livestock or poultry, growing vegetables or ornamental plants.
Do I need to register a private household
Within the limits of the activities of private household plots, every citizen of the Russian Federation has the full legal right to carry out any activity in the agricultural sector. Initially, it is assumed that in the conduct of such activities, citizens produce goods for your needs but the surplus can be realized.
In comparison with the peasant type of farming, with private household plots there is no need to register your employment with the tax office... In addition, this type of work is not subject to the requirements for keeping records and other documents.
Thanks to this, private household plots provide many opportunities:
- an opportunity to sell agricultural products is provided;
- there is no need to provide reports;
- the sanitary and other service does not have the right to a sudden inspection, since the person is not an individual entrepreneur;
- Private household plots are supported by state and regional authorities (subsidies). Moreover, in some regions of the Russian Federation, regional local self-government bodies even provide trading places in the markets.
But at the same time it is necessary to remember: with private household plots, taxes must be paid (on income). By by and large, all profits can be indicated in the declaration.
How many acres can be arranged for private household plots
Back in 2011, the legislation of the Russian Federation introduced restriction on the area of the plot for private household plots to 0.5 hectares... This restriction is state-owned, but regional self-government bodies have the right to increase the area by no more than 5 times.
In addition, on personal plots, the opportunity is allowed erect residential real estate and other structures.
It is worth noting that the difference between individual housing construction and private household plots is that on the land provided, it is allowed to build a residential building with no more than 3 floors. Moreover, only one family can live in it.
Speaking of field plots (the definition of field plots is given below), it is strictly forbidden to build capital real estate on them, but the installation of greenhouses, sheds and so on is allowed.
Where to register
The registration is carried out by the administration of the regional department of the local self-government body of the area on the balance sheet of which there is a plot for private household plots.
Registration instructions
Algorithm for selection land plot to citizens by self-government bodies for the management of LHP is as follows:
- Necessary create schemes for the location of the land plot, determine the territory and dimensions- this must be done in the event that the site was not yet formed before the allocation to citizens.
- It is necessary to form application for preliminary approval of the issue of land allocation- this should also be done exclusively in a situation where the site has not yet been formed, but is already issued.
- Territorial department of a self-government body makes a decision about the possibility to preliminarily agree on the allocation.
- At this stage, an event is organized on the issues of carrying out the necessary cadastral work (a new land plot is being formed for further transfer to the applicant).
- Implemented.
- An applicant for a plot must draw up a statement on consideration of the issue of granting him a land plot for private household plots.
- Formation and subsequent signing agreements between the owner of the land plot and the recipient.
In a situation where a plot is purchased from other owners, the algorithm consists solely in preparing the necessary documentation for further processing.
You need to prepare:
- original and a copy of the cadastral form for the existing site;
- agreement signed between the new and the previous owner of the land;
- original registration application;
- the original and a copy of the receipt of payment of the state fee.
It is imperative to remember: in all documents it must be noted that the land plot will serve as a personal subsidiary farm. This is necessary to avoid any further misunderstandings.
Application for registration of rights to land plots
The application form includes an established form, which can be submitted in several ways:
- via the Internet (Gosuslugi portal);
- standard (in writing, in person).
The form is filled in exclusively in Russian letters. When submitting in writing, you must use A4 sheets of paper. In a situation where one sheet is not enough, you can use additional ones (then each page must be numbered).
In the text of the application, you need to indicate information about real estate objects if they are used simultaneously and cannot function without each other. For example, if we are talking about a personal plot and real estate that is located on it.
Private household plots and subsidies
Financial capital within the framework of the subsidy program for private household plots can be provided for the following purposes:
- keeping of cattle (for example, cows);
- as compensation for previously acquired modern or modernized equipment;
- artificial insemination of cows;
- purchase of fuels and lubricants and various spare parts for normal agricultural activities.
To participate in the subsidizing program for private household plots, it is necessary to prepare a list of such documentation:
- application for participation in the program;
- copies of all receipts that are able to prove a fact financial costs when running private household plots;
- originals and copies of passports for all vehicles used in private household plots;
- originals and copies of loan agreements issued for the development of private household plots;
- livestock register;
- an act on the implementation of the slaughter of livestock and so on.
Sum financial aid regionally regulated and depends on economic development specific region of the country.
For example:
- in Tomsk, you can receive a subsidy in the amount of 4.5 thousand rubles for 1 cow with a calf and 3 thousand rubles for a heifer;
- in Voronezh, subsidies are issued not only for the maintenance of cattle in the amount of 790 rubles per 1 unit, but also for the purchase of livestock in the amount of 41 rubles per kilogram of live weight. For the birth of a calf, you can receive 3 thousand rubles.
Private household plots and loans, peculiarities of obtaining
You can get a loan for the further development of private household plots using one of the programs:
- for the construction of communications. Maximum amount loan of 500 thousand rubles, interest rate - 15.5%;
- for the development of private household plots. The maximum amount is 700 thousand rubles, the interest rate is 14%;
- crediting program "Reliable partner". Loans are issued for regular clients of banks at 13.5%;
- loan program "Gardener". Interest rate from 16%, the maximum limit is up to 150 million rubles.
You can get a loan at the following banks:
- Sberbank;
- Rosselkhozbank;
- Rossgostrakh.
Basic requirements for borrowers:
- obligatory confirmation of solvency;
- the presence of movable or immovable property on bail;
- presentation of guarantors.
How to register a house on the land of private household plots, registration of buildings
The right to erect real estate objects on a land plot for private household plots is formalized in a standard way (as for the plot itself).
To register with Rosreestr, you must provide a list of such documentation:
- a statement in the prescribed form (similar for the rights to a land plot);
- documents of title confirming the existence of a permit for construction works for the construction of real estate.
You can transfer documents to Rosreestr:
- personal appeal;
- with the help of third parties (provided that a notarized power of attorney is drawn up);
- through the mail of Russia;
- with the help of the MFC;
- through the Internet.
Land taxes private household plots
The only tax required to pay is. The amount is 0.3% of the cadastral cost of the land plot.
It should be borne in mind that:
- a site for maintaining a personal subsidiary farm can be a locality within the city limits. In this case, it has the name Backyard , if we are talking about a site outside the city - called "Field" ;
- on the backyard territory, you can engage in any kind of activity, on the field area - you can only grow vegetables;
- several plots of land are allowed, the main thing is the total area should not exceed 0.5 hectares.
This is a memo that every owner of a subsidiary farm should know.
Farm start
Personal subsidiary farm or is it a peasant farm? In the video below, the authors show and talk about the initial steps to create their farm.
Today we invite the reader to talk about a phenomenon widespread in Russia and called personal subsidiary farming. What will it be about? What exactly does it mean by itself this concept? Is there a talk in this case about a farm (peasant) economy, implying a relatively large-scale land ownership with a corresponding turnover, or is it just a modest backyard garden that can only feed its own owner with household members? Let's figure it out.
If you have a vegetable garden or a small plot of land near your home, where you grow a few vegetables and keep several livestock units, you may not plan to expand the farm. But in the case of the formation of surplus of the grown and produced, which you cannot consume on your own, you plan to sell them. Will such revenue be classified as business income? What do the norms of law say about this?
Federal Law on personal subsidiary plots
This activity is regulated by law. Namely - 112 Federal Law of the Russian Federation entitled "On personal subsidiary plots", published in 2003 (July 7). The first paragraph of article number 2 of this normative act provides a definition of the concept of personal subsidiary plots. Private household plots are a form of activity related to the production and processing of agricultural products. Moreover, this activity is considered non-entrepreneurial.
Private household plots (personal subsidiary plots) are run by a citizen alone or with the involvement of family members in order to satisfy their own personal needs on a plot of land acquired or provided specifically for this purpose.
The agricultural products that are grown and processed, in this case, belong to the property of the leading individual private household plots, and the process of its implementation is not an entrepreneurial activity. It is not necessary to register private household plots separately. The right to engage in such activities (production and processing of agricultural products with its subsequent sale) arises immediately after registration of ownership or lease on the specified land plot. According to the aforementioned Federal Law No. 112, a citizen who runs a private household plots is a commodity producer in the field of agriculture (similar to a farmer or an agricultural enterprise).
On what land plots is it possible to organize private household plots?
There are only two categories of such. The first of them is land plots for personal subsidiary plots within the boundaries of the settlement, that is, household plots. The second - land plots outside the settlement (field). On household plots, agricultural products are produced, as well as residential buildings, buildings and structures for household, industrial, etc. purposes are being erected. A land plot with a field status can only be used for the production of agricultural products without the right to build any buildings on it.
Are there any restrictions on the size of the land plot for private household plots?
The maximum size of such a plot in the case when it is provided to a citizen in the ownership of municipal or state lands is regulated by legal regulations local administration. The maximum total area of all land plots, which each citizen has the right to simultaneously own or have another right, is established in accordance with the law of the subject of the Russian Federation.
If the total area exceeded the maximum allowable size, then within one year from the date of the emergence of the right to the "extra" land plot, this territory must be alienated by the citizen. Another option - within the same period, the specified person should register as an individual entrepreneur or make state registration farm (peasant) economy.
Is it possible for a city dweller to get land in a village for the purpose of organizing private household plots?
If you live in a city, you have the right to receive a plot for private household plots. But only if they are registered on a permanent basis in a given urban settlement. A plot located in a municipal or state property, will be provided to you only if there is free land.
Accounting for private household plots
All private household plots are recorded by the administrations of settlements and urban districts in their household books. These books are kept according to the information provided on a voluntary basis by the leading private household plots citizen:
- Who is leading it - full name, date of birth of the citizen to whom the plot was provided or by whom it was acquired for the purpose of running a private household plots.
- Data (full name, date of birth) of those who, together with him, participate in the management of private household plots (living or just family members).
- The area of the plot occupied by private household plots. On what lands - sowing and planting of agricultural crops, on what - berry or fruit plantations.
- The number of livestock, farm animals, birds and bees.
- What property is at the disposal of private household plots. It is about equipment, agricultural machinery, Vehicle ah, which on the right of personal property or otherwise belong to the leading private household plots citizen.
What taxes have to be paid by the leading forestry complex
Article 217 of the Tax Code states that the taxpayer's income, which is received from the sale of livestock, poultry (live, in the form of their products or slaughter - in raw and processed form), grown in private farms located on the territory of the Russian Federation, as well as products plant and animal husbandry, beekeeping and floriculture (also in natural or processed form) are not subject to taxation of personal income tax... Leading private household plots is a form (as already mentioned) of non-entrepreneurial activity. That is, citizens who have organized such an economy do not have to pay:
VAT (its payers are individual entrepreneurs and organizations);
Income tax;
As well as property tax (this does not apply to real estate, machinery and vehicles).
In addition, he is not "threatened" with deductions from the salaries of employees, who are most often family members.
And what will the owners of private household plots have to pay? Land tax must be paid by them. Agricultural machinery and real estate are also taxed.
Let's talk about selling LPH products
Before you start selling products grown in your own private household plots, you should take a certificate from the local administration (from the head of the rural settlement) that the products you grow and sell were produced exactly there - in your private household plots. This will guarantee you tax exemption.
For example, you are driving several slaughtered sheep or chickens to the city market in your own vehicle. When a traffic police officer stops, questions may arise - where are you going and where is so much meat from. By presenting the specified certificate (that is, confirming that products grown in private farms are being transported), you will get rid of unnecessary misunderstandings.
Another situation - you are planning to deliver this meat, for example, to a sausage shop. In this case, a trade and procurement act will be drawn up indicating your passport data and TIN (do not forget to stock up on copies of these documents to provide the buyer with products). The abovementioned certificate on the sale of products grown in your private household plots is a compulsory annex of the trade and procurement act.
Possible misunderstandings
The legislation determines that the buyer has no right to withhold personal income tax from you and must not submit a relevant certificate to you in tax office... But sometimes, due to poor knowledge of legal intricacies, the person purchasing the product can still submit information to you in tax authorities about the income received.
In this case, at the beginning of the next calendar year, you will receive a notification about the income received based on the results of the past year and unpaid tax... Then you have to pay a visit to the tax office with the giving of oral or written explanations about the nature of the transaction. In this case, no declarations are required and the tax itself, as already mentioned, does not have to be paid.
What else should the owner of a private household plots know?
In the case of the sale of your grown products on the market, the use of cash register equipment is not required - it must only be with an organization or an individual entrepreneur that you are not currently.
Hence the conclusion - if the entire set of land plots in your ownership or lease does not exceed the size established in accordance with the law of a constituent entity of the Russian Federation, then this form of self-employment - in the form of a private household plots organization - may be the best option, since one of its undoubted advantages is the absence of registration and taxation ...
Wherein government bodies and the local administration is prohibited from interfering with the activities of the leading private household plots, except in cases provided for by law. It is their authority to monitor the observance of legal norms by such citizens.
What property is used for running private household plots?
The sixth article of the Federal Law "On personal subsidiary plots" states that it is possible to use in it a plot of land acquired or provided for this purpose, a residential house, as well as other buildings, structures of a domestic or industrial nature, including greenhouses. Such property also includes all livestock of farm animals, birds and bees, a set of agricultural machinery and implements, equipment, vehicles, etc.
Does the state support the owners of private household plots?
According to Article 7 of the same Law 112 FZ, measures to support citizens employed in private household plots are determined by local governments. Along with this, the legislation of the Russian Federation provides for the following areas of state support for such citizens:
- In the form of the formation of the necessary service infrastructure (access roads, energy and water supply, communication facilities, etc.), assistance in the organization of consumer agricultural cooperatives of a trade (marketing), processing, service and other nature.
- In the form of stimulating the development of a network of private household plots by creating conditions of a social, organizational, legal and environmental nature. In particular, the owners of private household plots, as well as their service organizations (for example, agricultural cooperatives), are provided on a return basis with financial and logistical resources, as well as technologies and necessary scientific and technical developments.
- In the form of the implementation of the necessary measures leading to the improvement of the quality of rural breeding animals, the organization of their artificial insemination.
- Also - an annual free veterinary examination of livestock with the organization of veterinary services, the fight against infectious diseases among animals.
What else affects the development of private household plots
The legislation of the Russian Federation provides for the extension to private household plots of those measures of state support that are provided at the expense of the federal budget to agricultural producers. The constituent entities of the Russian Federation accept programs for the socio-economic development of not only rural settlements, but also private household plots. Within the limits of their own powers, they determine in what form, size and procedure the support of private farms will be provided on their own territory together with agricultural cooperatives and other organizations serving them.
Leading private household plots are granted the right to enter into a legal relationship of compulsory pension insurance on a voluntary basis.
When does the maintenance of private household plots cease? This occurs in the event of termination of the rights to the land plot where it is being maintained.
What you need to remember for those who want to organize a private household
As already mentioned, according to the law, it is not allowed to build on agricultural land. That is, if you plan to build a residential building or other structures, your private household plots must be within the boundaries of the settlement. It should be borne in mind that rent for a hectare of land within its borders costs an order of magnitude more than outside the settlement.
In the case of obtaining the status of a farmer (that is, the formation of a farm), a citizen is obliged to register as an entrepreneur with all the ensuing difficulties and consequences - maintaining a balance sheet, reporting, which at times complicates the procedure for managing a land plot and will scare many away from this occupation.
Another option for those wishing to build on the land of private household plots is to seek the transfer of the field site to the category of settlement land. It must be remembered in this case that the land used not for intended purpose, can be withdrawn by law.
Almost every resident of the suburbs and villages has a personal subsidiary farm, which allows him to grow products for his own needs. But quite often this product is obtained in abundance, and residents sell it in the markets and through stores. The law does not prohibit such activities, so it makes sense to consider personal subsidiary farming as a separate business.
What is a personal subsidiary farm
The legislator defines a personal subsidiary farm (LPH) as a form of activity for the production and processing of agricultural products, which does not belong to entrepreneurial activity. The land plot for personal subsidiary farming cannot exceed 2.5 hectares. Anything above is considered a commercial activity that should be taxed.
Land for personal subsidiary farming is issued to each owner of the house in countryside for life with the right of inheritance and sale. This land can only be used for agricultural needs, but it is allowed to erect a certain type of building: for living and various auxiliary buildings for agricultural activities.
Business land
The use of land for personal subsidiary farming is regulated by special laws. Their provisions establish that for such purposes, plots can be sold or leased by the state with an area of no more than 0.5 hectares. But at the same time, local authorities are allowed to increase this size by a maximum of five times. That is, for a personal subsidiary farm, you can find a maximum of 2.5 hectares of land, if the local authorities consider it possible.
For these purposes, there are two types of land: field and household. The latter are usually allocated within the boundaries of the settlement and it is possible to erect buildings on them, including residential ones. Agricultural lands can be allocated for field use, but nothing can be built on them. You can open your own business using both one and the other lands.
How to get land
There are several ways to get land for private household plots:
- buy;
- inherit;
- obtain through the allocation of land by the state.
To do this, you must submit an application to the local administration, which considers the application within a month. In case of a positive decision, together with the decree, a plot scheme or a land order is issued. Each document must be stamped and signed by the head of administration.
Based on these documents, it is necessary to register the right to real estate... In each region, this is dealt with by a separate government agency... No later than a month, you must be given a corresponding certificate. If the boundaries of the site have not been established until this moment, they are outlined, a diagram is drawn up. All these manipulations are charged. For the establishment of boundaries - on a contractual basis, and for the registration of property rights established National tax in the amount of one and a half minimum wages of citizens.
Business benefits
The main advantage of such a business is that you do not need to register any entity nor individual entrepreneur... But if you nevertheless decide to register the latter for conducting commercial activities, you can use the most low interest taxation - 6%.
Opening such a business means employing your whole family, which will work for the common good. If a business is organized correctly, it will be 100% profitable. Moreover, such products are in demand among the population. In addition, such a business is allocated targeted loans, issue government subsidies.
But in order for a personal subsidiary farm to bring a stable income, it is necessary to think over the business plan well and find clear answers to the main questions:
- What to build a business on?
- Where to sell your products?
- How to compete with existing manufacturers?
- Is it possible to open your own retail outlet and how to do it?
Nuances of manufacturing agricultural products
There are no restrictions on maintaining personal subsidiary plots. You can engage in both animal husbandry, poultry farming, and grow vegetables and fruits. Accordingly, in case of excess, the law allows them to be implemented, as already mentioned, without registering an enterprise and paying taxes.
True, in order not to pay taxes officially, two important conditions must be met:
- The plot of land intended for the development of your farm should be no more than the area established by law.
- The business should be serviced only by members of your family, without the involvement of hired workers.
Moreover, you can get a document from the local government, on the basis of which you can freely draw up a veterinary opinion on personal farm products. Local self-government bodies are obliged to keep records of all personal subsidiary farms located on the territory entrusted to them. That is, in order to open a business, it is advisable to register with local authorities, where you indicate your type of activity. Based on these data, a certificate is issued with the corresponding information.
Lending and subsidies
Today this business and its development are supported by various structures. The easiest way is to get targeted loans from banks. Each banking institution develops its own programs to support agricultural activities. They have different durations and purposes. For example, you can find a loan offer for a two-year period for the following needs:
- acquisition building materials for fences and fences;
- purchase of planting material, seeds;
- purchase of fuels and lubricants;
- payment of rent for premises and land;
- payment of electricity required for irrigation;
- purchase of young animals for breeding;
- purchase of plant protection products, mineral fertilizers;
- various seasonal costs.
Also offers of loans for capital expenditures associated with ancillary business for up to five years. For example:
- purchase of livestock of animals;
- purchase of equipment for processing agricultural products or for animal husbandry;
- construction or renovation of premises for animal husbandry;
- purchase of agricultural land, etc.
If a special technique is needed for a personal household, an item on obtaining a loan for it for special conditions... Money is issued for:
- purchase of various vehicles for use on the farm weighing no more than 3.5 tons;
- purchase of tractors with a capacity of up to 100 hp;
- purchase of tractor trailers and semi-trailers;
- the purchase of various equipment with which the processing of agricultural products will be carried out or which will be used in animal husbandry;
- irrigation equipment and so on.
Governmental support
The state has developed special programs for financial support for the formation and development, including of personal subsidiary plots. It is not easy to get them, you have to comply with a number of conditions and win the tender, but there is such an opportunity and it should be included in the business plan.
Such support is distributed by region and issued by local authorities. To get a chance for it, you must submit everything to it. Required documents together with a certificate of calculation for receiving subsidies. A complete list of documents and deadlines for their submission are established by local authorities. Based on the documents submitted, this state structure forms a register of applicants for subsidies and holds a competition.
Conditions for obtaining a subsidy
If a business plan is drawn up with the expectation of receiving government subsidies, it must be taken into account that most often they are allocated to the following areas:
- Partial reimbursement of expenses for keeping cows. At the same time, there must be at least three of them in the personal household at the time of application. Funds are issued at the rate of 3 thousand rubles. one head per year.
- Partial reimbursement of expenses for the purchase of equipment and machinery of agricultural value, which is included in the list of special Appendix of the rules for issuing subsidies. Please note that the cost plan for one subsidiary farm is no more than 150 thousand rubles. in year. Again, it must have at least three cows by the time you apply for the grant.
Documents for obtaining a subsidy
If your plan includes registration of this kind of state aid, prepare the following documents:
- the corresponding statement in the prescribed form;
- an extract from the household book provided for the conduct of such a household (the extract must be drawn up in the same month in which the above statement was signed);
- copies of payment documents or receipts signed by the recipient of funds, which confirm payment for artificial insemination services for the current year;
- copies of such documents (certified by the owner of the farm):
- transport passports that are registered with the farm;
- payment documents under contracts;
- contracts for the provision of services or performance of work, as well as documents that confirm their implementation;
- contracts and other materials that confirm the purchase of materials, equipment or technology.
The amount of subsidies depends only on the allocated budgetary funds for these purposes within a given region.
Drawing up a business plan
Even if you plan to run a personal subsidiary farm, you, one way or another, need to draw up a business plan. First of all, it will help you personally outline the development strategy of the enterprise, assess possible risks and find ways to solve them. In addition, if you are looking for loans or grants from public or private institutions, you may also need a business plan. Often decisions are made based on the calculations provided by the owner.
Therefore, a business plan must be drawn up in detail and competently. To do this, it is imperative to take into account and describe the following points:
- What is the planned main line of business for your farm.
- What additional activities do you include in your activity plan?
- Where will the main income come from, and where will the additional income come from.
- What are your long-term and short-term goals.
- What will be the advantages of your products, thanks to which you are going to win your niche in the market.
- The main characteristics of the market: dynamics, attractiveness, trends.
- What are the risks associated with this activity.
- How do you plan to deal with the risks, how can they be mitigated.
- Is property insurance planned, according to what scheme.
On the basis of these points, three main components of a business plan can be distinguished, according to which it should be formed.
Organizational plan
In this section, you must indicate the name, surname and patronymic of the owner of the farm, the chosen direction of activity, work experience in it, education. You also need to indicate other participants in the project, give their characteristics. Here it is necessary to describe the conditions for growing products, property, and so on.
Production plan
This part is devoted to the characteristics of the land plot, technical base, and other own resources of the owner. It is desirable to give an accurate description of them, the advantages that the location gives, technical characteristics, condition, etc.
Financial plan
The final part of the document will be a financial plan. It should reflect such indicators as:
- Estimated income, which is calculated based on the estimated production volume and price. According to which it is planned to sell products.
- Estimated costs, which are calculated from the estimated volume of purchases of inventory, fertilizers, medicines, feed, electricity costs, etc.
- If there are tax expenses, they must also be taken into account.
- Remuneration of labor to the project participants, even if only relatives are planned to be involved in it.
- Capital expenditures - purchase of seeds, livestock, building materials, equipment, etc.
- Sources of financing, their conditions and forms.
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