Agrarian Structure Reform

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The key elements Draft of the new law on Agrarian Structure Reform Alejandro Vázquez Moliní Sub-director of Agrarian Infraestructures Ministry of Rural Affairs of Galicia INTRODUCTION A new legislation developed with the objective of improving the conditions for a rationale and sustainable agricultural and forest use of the territory. This will be mainly made trough: Adapting the traditional land consolidation Creating new mechanisms to solve land fragmentation at 3 levels: parcel, ownership and use Integration with other land development instruments: land bank and UXFOR It is already a draft and it has been made public but until today it has been only discussed in a close group. Next months it will go on with the procedure until its final approval

The main points of the new legislation It will operate in agricultural and livestock farming areas. Compulsory basis but a initial commitment of at least 75% is needed After a project, the landowners are obliged to maintain the plot of land in production or to transfer it to the Land Bank of Galicia (the use of land, not ownership) To obtain a high reduction in the number of new parcels, if this is not achieved, the procedure can be closed Rationalize the costs of the projects Speed up the procedure The main points of the new legislation To make intermediate reports about the feasibility of the project to take decisions about going on with the procedure To create mechanisms to develop the land structure reform in different ways than the traditional land consolidation. To redistribute parcels in farming areas but not in forest areas To develop and construct the infrastructures needed

Key elements: Instruments ONE PROYECT AREA: Agrarian Structure Reform Project Excluded zones Agrarian zones Forest zones ONE PROYECT: type of actions Over the structures Over the infrastructures ONE PROYECT AREA: Different mechanisms Traditional Land Consolidation Forest Unit Areas Areas of Land Consolidation Areas of Land Association Traditional Land Consolidation Excluded Zone: Urban Area Area of Land Consolidation Forest Unit Areas Forest Unit Areas Area of Land Association Mechanisms for the structure reform

(1) TRADITIONAL LAND CONSOLIDATION: Definition Reorganization of the parcels of an area into consolidating holdings by changing the actual ownership reorganization, trying to get the lower number of new plots with a bigger dimension and a better shape for the agrarian uses (1) TRADITIONAL LAND CONSOLIDATION : Key factors To reorganise the parcels in a very small number of holdings per landowner To reallocate together the parcels of a farm Locate the new holdings near the household of the landowner or near the biggest and most important parcel of the landowner To provide the new holdings an access to a public road The preparation of the new plots for cultivation will not be compulsory for the Administration, but the Administration could do it with its own means or by establishing public aids for the landowners Priority criteria: Compromise of maintaining in production the parcel or transferring it to the Land Bank for a period of 10 years The condition of farmer (the landowner) Results of the enquiry of preferences If the new allocation implies a considerable improvement compared with the previous situation

(2) FOREST UNIT AREA: Definition Demarcated zones in the area of the project with forest potential and with a sufficient size to create a Forest Management Unit (UXFOR). In this area there won t be any reallocation of parcels and ownership rights. (2) FOREST POLYGON: Keys Definition of closed areas with the characteristics that are needed to create a Forest Management Unit Together with the rest of the areas defined in the project there will be collected the necessary data to create a map of the actual situation but there won t be any reallocation of parcels and there won t be any improvement or works in roads The parcel that each landowner contribute with at the beginning of the project will be the same that the parcel he/she will obtain at the end of the procedure- It will be possible to do a reallocation of parcels, but only in case of parcel exchanges between landowners, these exchanges will be free of Patrimonial Taxes Each landowner will receive a title deed once the Agreement is executed and Final

(3) AREA OF LAND CONSOLIDATION: Definition Reorganization of properties through parcel reallocation in specific LOCAL areas of the project (3) AREA OF LAND CONSOLIDATION: Keys Parcel reallocation in the lower number of new holdings of bigger dimension and better shapes The definition of the perimeter of the area will be made by the administration according to agronomic, topographic and orography situation It will be applied the same criteria of redistributing as in the traditional land consolidation

(4) AREAS OF LAND ASSOCIATION: Definition Reorganization of the properties through the reallocation of parcels in only one holding and whose owner will be an association. If it is needed there will be also reallocation of parcels in holdings for the landowners who don t participate in the association (4) AREAS OF LAND ASSOCIATION: KEYS The administration will promote actively the participation of the landowners in these areas The quota of participation of each landowner in the association will be proportional to the area which he/she contributes with Ha of land = shares in the association For the creation of this area, the parcels of the landowners who don t want to participate in the association can not represent more than 25% of the area For landowners who don t want to participate in the association, it will be negotiated the reallocation of their new holdings through: Selling their land to the association (trough the prices that the Galician Land Bank will establish) To obtain a new holding outside the agrarian area of association but within the project area Forms of association: cooperatives, private limited companies, agrarian associations,...

BEFORE AFTER Agrarian Structure Reform