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Armenian Government Approves Farm Consolidation Concept

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  • Armenian Government Approves Farm Consolidation Concept

    ARMENIAN GOVERNMENT APPROVES FARM CONSOLIDATION CONCEPT

    /ARKA/
    NOVEMBER 3, 2011
    YEREVAN

    YEREVAN, November 3. / ARKA /. The Armenian government approved today a
    farmland consolidation concept. Agriculture minister Sergo Karapetyan
    said the concept is in tune with the strategy of sustainable rural
    development designed for 2010-2020.

    According to him, the efficiency of agricultural production is
    limited due to small sizes of farms (340,000) and the fragmentation
    of land (1.2 million land parcels)."The main goal of the concept
    is to address the process of consolidation of farm land, increase
    the investment attractiveness of the sector and create favorable
    conditions for improving the competitiveness of exporters and large
    trade organizations," said the minister.

    "The basis of two government-designed programs is based on
    the principle of stimulating cooperation; the first program on
    competitiveness and management is aimed at the establishment of
    associations for the use of pastures. They have been created in 35
    communities already. The second program backed by a Japanese grant,
    provides for the purchase of tractors for the cooperatives," he said.

    The minister said a pilot project was implemented in 2006 in Kotayk
    province. As a result an average farm size increased from 0.55 ha to
    1.93 ha. Karapetyan said that the entire process of land consolidation
    is divided into three phases: in the first, two-year stage, a legal
    framework and conditions for the promotion of land consolidation
    will be created, the second three-year phase will focus on voluntary
    land consolidation and the third, five-years stage, will focus on
    establishment of small and medium enterprises and their technical
    equipment. Armenia has 470,000 ha of sown area, of which only 71%
    is used for sowing and 130 thousand hectares of arable land are not
    cultivated.

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