What are the laws and regulations for farming in Russia today? What is peasant farm? In this article we will examine in more detail what features prevail in peasant farms, what is necessary for the creation and functioning of the latter, and who specifically has the right to organize this association. Also in the article it will be possible to find information on how specifically the peasant farm differs from a personal subsidiary farm.
What is peasant farm
First of all, you need to familiarize yourself with the definition. So what is peasant farm? This abbreviation today refers to peasant farming. It is a special form of entrepreneurial activity, which is aimed at the formation and cultivation of agricultural products, as well as their implementation in the markets.
Speaking about what peasant farms are, it should also be noted that its main goal is to make a profit by growing agricultural products, as well as selling them to wholesale or retail customers. For this, close relatives take part in farmer associations, and outsiders can also be involved. But at the same time, as a rule, their number is not more than 5 people.
You should also pay attention to the fact that the registration of peasant farms is an exclusively voluntary activity, and each member of the household will fully participate in the activity, but it is allowed to do this to people whose age is more than 16 years. It is also forbidden to simultaneously be a member of several similar associations that are registered as legal entities. When creating a peasant farm, its members are entitled to receive state support in the form of grants and subsidies, as they take part in the work of a strategically important industry aimed at food production.
Legal registration
Now let's get acquainted with other important features of the peasant farm. Russian modern farmers have the right to register a peasant farm as a legal entity or to refuse this procedure. Unfortunately, today in matters concerning the registration of peasant farms there is a lack of clarity in the legislative framework. Thus, peasant farms can function as a legal entity, and also exist without registration.
In addition, there is an option in which peasant farms are registered as an individual entrepreneur planning to work only on their own or involving hired employees. On the other hand, an individual can also single-handedly register a peasant farm for himself and work independently. Thus, there are many options for organizing peasant farms. List of organization types:
- Voluntary agreement of several persons with the registration of legal entities. faces.
- Association on a voluntary basis of several persons without registration of legal faces.
- SP.
- A person without the status of an individual entrepreneur who registers and conducts an economy independently.
Legislative regulation of farmer associations
This form of economic activity is the subject of a separate Federal Law, under number 74. It can examine in detail the procedure for conducting such an economy, managing land resources and property, accepting new members in peasant farms, and other important nuances. It must be borne in mind that this law applies only to associations that are registered as legal entities.
It should also be noted that if the peasant farm is not registered as a legal entity, then it will be guided in its activities by the civil code, that is, article 86. This article records voluntary participation in the association, as well as the age at which it is allowed to be a member of the peasant farm .
Legal issues
During the establishment of a farm, members of one family or a group of persons must draw up a special agreement, which includes:
- Data on the head of the peasant farm.
- A complete list of all members of the association, while kinship ties, if any, are indicated.
- Obligations and rights of members of the association.
- The entire list of property, the procedure for their ownership, as well as use for economic purposes.
- A certain order of entry into this association or exit from it.
- Rules for the distribution of finished products, as well as the main sales channels.
- Other items at the discretion of all peasant farmers who do not contradict Russian law.
All members of the association, including the head of the peasant farm, must sign this agreement on voluntary entry in person. If, according to the plan, in a few years another member should join the association, then this item can also be included in the agreement. In the event that the association is created by the family, then documents that confirm their kinship must be attached to the agreement and the statutory documentation.
What and how does the peasant farm owns
Within the framework of its own activities, any peasant farm has the right to own and use:
- Objects of capital construction, as well as other structures.
- Land
- Funds received in the course of entrepreneurship.
- Equipment, agricultural machinery, any equipment.
- Transport, including freight vehicles.
- Reclamation facilities.
- Tribal animals.
- Seeds, as well as other raw material resources.
It must be remembered that the list of this property is mandatory in the agreement. All members of the association have this property together, having equal rights. Therefore, we cannot say that the land can belong only to the head of the peasant farm, and the truck belongs to his brother.
When this agreement is signed, all listed property in it will become common. After the termination of the activity of the peasant farm, the property should be divided between the participants in this farm, and after death it should be inherited, in accordance with the requirements of Russian legislation.
Responsibility of all members of the holding
Due to the fact that all peasant farms are conducting entrepreneurial activities, that is, they want to achieve systematic profit, they risk losing some of their capital or their property. If the farm owes to banks on loans or some other financial obligations, then all property will be put up for public auction. If this action is not enough, then debts can be collected not only at the expense of the property of the head of the farm, but also other members of the association equally.
Head of Association
Each farm should have its own head. In this role, one of several members of the peasant farm or the sole owner may act. Since any farm, in fact, is considered a voluntary association of workers who have equal rights, the head does not have any special powers and responsibilities.
In many ways, this position is simply a formality, which involves a representative function, for example, when receiving a subsidy, interacting with government bodies or contractors. It should be noted that not only citizens of the Russian Federation, but also citizens of another country, without having Russian citizenship, can head and create farms.
Difference from LPH
Many people often confuse personal subsidiary farming and peasant farming. But how do these terms differ? The main difference is in the objectives of the activity. At KFH the main goal is entrepreneurship and profit. At LPH this goal is to produce products for their own needs. Thus, the members of the peasant farms produce and grow products for sale, and the members of the private household plots grow them only for themselves. Private household plots do not have to be registered on a mandatory basis, and also pay taxes.
Tax payment
But what about peasant taxes? Farms are engaged in entrepreneurial activities, so they must pay income tax. In most cases, such associations choose a simplified taxation system, where the rate is 6% of profits. In this case, a declaration must be filed with the Federal Tax Service once a year, which saves time. Other taxation regimes are not prohibited by law, but are the least beneficial.
As a rule, the head of the peasant farm monitors the timely payment of all taxes. In addition to taxes, the head for all members of the farm must also pay pension and insurance contributions, and mandatory contributions must be made for employees as well as income taxes.
Are there many peasant farms in Russia
How many peasant farms are currently registered in the Russian Federation? There is no exact answer to this question. The fact is that the result of the last all-Russian census of agricultural activity, which was carried out in 2016, is still unknown. It is even more difficult to say how peasant farms are distributed across the country's regions.
But if we look at older data, for example, 2006, then we can say that in our country there are at least 170,000 peasant farms registered. Within this state, this is a fairly large number of all registered farms.
Taking into account the fact that since 2012 there has been a state program to support all farmers, it can be assumed that currently farming has significantly increased. The final census data on the number of registered peasant farms (by regions of Russia) will be published at the end of 2018.
Is it worth it to create a farm
What are the disadvantages and advantages of this form of agricultural activity? Most farmers who work in the field of industry for a long time can not decide whether or not to register this type of economy. Their findings are mostly not obvious. And most pitfalls appear only after registration. Let us consider separately the negative and positive aspects of peasant farming.
Benefits
One of the advantages of creating a peasant farm is the absence of a minimum capital requirement. As a rule, for ordinary legal entities it is from 10,000 rubles.
Registered farms are more likely to receive municipal or state subsidies. Peasant farms can also obtain a plot of land for conducting activities on the basis of preferential terms, and they also have the lowest reporting volume when comparing this activity with LLCs.
disadvantages
However, the farm has some disadvantages. One of them is that no more than 5 people who are not relatives can be involved in an association. For all members of the peasant farm, participation in agricultural work is mandatory, making it difficult to attract new members, and even more investors.
If a farm encounters financial problems, its members will be held personally liable. Russian legislation regarding peasant farms has not yet been sufficiently developed, and many areas have remained unresolved.
Perspective
Today, agricultural activity in Russia is quite difficult to call a successful and modern deed. Despite the fact that the demand for food is high among the population, the organization of their production, as well as access to the market, require very significant costs.
This form of agricultural activity is suitable for large families who live in rural areas. Thanks to this, they will be able to count on assistance from the state, including the allocation of land for peasant farms, but they will also have to suffer with paperwork.
KFH is suitable for farmers who already have some experience in trade, as well as in the agricultural sector. It must be remembered that the purpose of this association is to produce goods for sale, and not just for personal use. Therefore, it will not be superfluous to draw up a special business plan, as well as preliminary thinking through a certain procedure for the sale of finished products.
Having considered all the features of a peasant farm, you will now be able to independently decide on its registration.