New approaches to land use discussed
Uzbekistan
President Shavkat Mirziyoyev reviewed a presentation of proposals aimed at further improving the efficiency of land use.
Over the past five years, our country has undertaken systematic reform of land relations. Specifically, the authority of khokims to allocate land has been terminated, and land sales have been transferred to auctions. During this period, 616,300 hectares of land were distributed through auctions, generating 1.4 trillion soums in revenue for the budget. Most importantly, thanks to the emergence of a real owner, income per hectare has tripled, reaching 50-60 million soums. Today, these lands produce 539 trillion soums worth of goods annually and support $2.1 billion in exports.
However, a number of issues remain in this area. In particular, despite the fact that land is allocated through auctions, tenants' autonomy in its use remains insufficient. For this reason, 117,600 hectares of land remain unsold.
In this regard, it is planned to introduce a new system for leasing agricultural land, as well as auctioning an additional 100,000 hectares of land under new terms this year. Particular attention will be paid to strengthening economic incentives for efficient land use.
It was emphasized that the practice of independently planting agricultural crops on sold plots, introduced last year in the Fergana Valley, Jizzakh, and Tashkent regions, as well as in Karakalpakstan, has yielded positive results. Specifically, in 2025, entrepreneurs planted high-income and export-oriented crops of their choice on 16,000 hectares of 20,000 hectares, creating the basis for $150 million in exports. The importance of expanding this practice and providing landowners with greater economic freedom was noted.
Land plots ranging from 50 to 500 hectares are to be auctioned for industrial plantations and livestock farming projects. At least five major projects are planned for launch in each region this year. Financial support measures are envisaged for their implementation, including covering water and electricity costs, providing preferential loans for up to seven years with a three-year grace period, compensating interest rates on loans, and subsidizing up to 50 percent of the packaging costs of grown produce.
The presentation also focused on the widespread use of advanced international practices to increase land profitability, particularly modern foreign agricultural technologies. It was also emphasized that national interests must be protected in this process.
In particular, the procedure and conditions for granting agricultural land to foreign investors will be revised. In the future, only the secondary leasing mechanism will be applied to these lands, through directorates of regional khokimiyats, for projects with an investment volume of at least $10 million and subject to the inclusion of pasture, rainfed, and decommissioned lands.
Furthermore, the need to ensure that only local farmers and entrepreneurs will be able to participate in agricultural land auctions was emphasized. Defense lands, border lands, historical and cultural lands, and forest lands will be allocated only to Ukrainian citizens. At the same time, it was proposed to establish a uniform lease term of 49 years for all types of land, including for foreign investors implementing industrial and construction projects.
The leases of nearly 100,000 hectares of land are expiring soon. Therefore, entrepreneurs are raising the need to introduce a convenient and transparent procedure for lease renewals without re-auctioning such plots. The presentation proposed implementing this process through government service centers and electronic platforms, integrating the information systems of cadastral, agricultural, and justice agencies, and, in the absence of objections, extending agricultural land leases to 30 years and non-agricultural land leases to 49 years. It also stipulates that leases will not be renewed for a new term only in cases of tax or rent arrears, legal disputes, or illegal construction.
It was critically noted that the processes for changing land categories and calculating compensation payments for losses are still conducted on paper. This leads to delays in approval and final decision-making, causing investor dissatisfaction. In this regard, the goal has been set to digitalize all processes and implement a land use efficiency assessment system based on criteria such as intended use, water efficiency, and soil quality.
The need to expand the possibilities for using land lease rights as a financial instrument was noted. In particular, it was proposed to create conditions for their use as collateral not only for commercial loans but also for leasing, mortgages, and bank guarantees. Furthermore, it was proposed to simplify the procedure for recognizing land plots as vacant and clearly define the possibility of concluding land re-lease agreements on both a paid and gratuitous basis. Based on this, it was also proposed to revise criminal penalties for offenses related to the illegal circulation of land plots.
Additionally, special attention was given to strengthening liability in the area of land control. In particular, the need to extend liability for the unauthorized seizure of land not only to irrigated land but also to all other categories of land was emphasized. It was also proposed to exempt from compensation payments for losses in cases of land reclassification for the construction of railways and highways, airports, airfields, air navigation facilities, water management structures, and networks, as well as to exempt compensation payments for the seizure of land for public needs from taxation.
It was emphasized that in the future, services will be provided to agricultural land tenants through 13 regional directorates, and to entrepreneurs implementing investment projects on non-agricultural land through 14 investment companies. These structures should serve as a liaison between government agencies and entrepreneurs.
The head of state gave relevant instructions to responsible officials to advance land reform to a new stage, improve the efficiency of land use, create an even more open and understandable system for entrepreneurs, and accelerate the digitalization of this sector.
However, a number of issues remain in this area. In particular, despite the fact that land is allocated through auctions, tenants' autonomy in its use remains insufficient. For this reason, 117,600 hectares of land remain unsold.
In this regard, it is planned to introduce a new system for leasing agricultural land, as well as auctioning an additional 100,000 hectares of land under new terms this year. Particular attention will be paid to strengthening economic incentives for efficient land use.
It was emphasized that the practice of independently planting agricultural crops on sold plots, introduced last year in the Fergana Valley, Jizzakh, and Tashkent regions, as well as in Karakalpakstan, has yielded positive results. Specifically, in 2025, entrepreneurs planted high-income and export-oriented crops of their choice on 16,000 hectares of 20,000 hectares, creating the basis for $150 million in exports. The importance of expanding this practice and providing landowners with greater economic freedom was noted.
Land plots ranging from 50 to 500 hectares are to be auctioned for industrial plantations and livestock farming projects. At least five major projects are planned for launch in each region this year. Financial support measures are envisaged for their implementation, including covering water and electricity costs, providing preferential loans for up to seven years with a three-year grace period, compensating interest rates on loans, and subsidizing up to 50 percent of the packaging costs of grown produce.
The presentation also focused on the widespread use of advanced international practices to increase land profitability, particularly modern foreign agricultural technologies. It was also emphasized that national interests must be protected in this process.
In particular, the procedure and conditions for granting agricultural land to foreign investors will be revised. In the future, only the secondary leasing mechanism will be applied to these lands, through directorates of regional khokimiyats, for projects with an investment volume of at least $10 million and subject to the inclusion of pasture, rainfed, and decommissioned lands.
Furthermore, the need to ensure that only local farmers and entrepreneurs will be able to participate in agricultural land auctions was emphasized. Defense lands, border lands, historical and cultural lands, and forest lands will be allocated only to Ukrainian citizens. At the same time, it was proposed to establish a uniform lease term of 49 years for all types of land, including for foreign investors implementing industrial and construction projects.
The leases of nearly 100,000 hectares of land are expiring soon. Therefore, entrepreneurs are raising the need to introduce a convenient and transparent procedure for lease renewals without re-auctioning such plots. The presentation proposed implementing this process through government service centers and electronic platforms, integrating the information systems of cadastral, agricultural, and justice agencies, and, in the absence of objections, extending agricultural land leases to 30 years and non-agricultural land leases to 49 years. It also stipulates that leases will not be renewed for a new term only in cases of tax or rent arrears, legal disputes, or illegal construction.
It was critically noted that the processes for changing land categories and calculating compensation payments for losses are still conducted on paper. This leads to delays in approval and final decision-making, causing investor dissatisfaction. In this regard, the goal has been set to digitalize all processes and implement a land use efficiency assessment system based on criteria such as intended use, water efficiency, and soil quality.
The need to expand the possibilities for using land lease rights as a financial instrument was noted. In particular, it was proposed to create conditions for their use as collateral not only for commercial loans but also for leasing, mortgages, and bank guarantees. Furthermore, it was proposed to simplify the procedure for recognizing land plots as vacant and clearly define the possibility of concluding land re-lease agreements on both a paid and gratuitous basis. Based on this, it was also proposed to revise criminal penalties for offenses related to the illegal circulation of land plots.
Additionally, special attention was given to strengthening liability in the area of land control. In particular, the need to extend liability for the unauthorized seizure of land not only to irrigated land but also to all other categories of land was emphasized. It was also proposed to exempt from compensation payments for losses in cases of land reclassification for the construction of railways and highways, airports, airfields, air navigation facilities, water management structures, and networks, as well as to exempt compensation payments for the seizure of land for public needs from taxation.
It was emphasized that in the future, services will be provided to agricultural land tenants through 13 regional directorates, and to entrepreneurs implementing investment projects on non-agricultural land through 14 investment companies. These structures should serve as a liaison between government agencies and entrepreneurs.
The head of state gave relevant instructions to responsible officials to advance land reform to a new stage, improve the efficiency of land use, create an even more open and understandable system for entrepreneurs, and accelerate the digitalization of this sector.
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