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This Law sets forth legal grounds for setting up, functioning, reorganization and liquidation of peasant farms, regulates the rights and the duties thereof, and also the interrelations with other legal and natural persons. The Act consists of seven Chapters divided into 36 Articles: (1) general provisions; (2) allotment of land to peasant farms, landownership, land use and water use; (3) the rights and the duties of peasant farms and their members; (4) property of peasant farm; (5) functional basis of peasant farm; (6) reorganization and liquidation of peasant farm; and (7) final provisions. Peasant farm shall carry out its activity on the plots of land allotted thereto on condition of long-term lease. Members of peasant farm shall be the head of household, his wife, children and close relatives that carry out jointly farming. Peasant farm shall be set up through tenders predominantly on land and territories with insufficient labour resources. Stockbreeding peasant farms shall be set up subject to availability of at least 30 head of cattle. Minimum land plot size allotted on condition of lease to crop production peasant farms specialized in cotton and grain production shall be of ten hectares, while for gardening, viticulture and vegetable growing minimum land plot size allotted on condition of lease shall be of one hectare. Peasant farms shall be set up on voluntary basis by means of written request submitted by the head of household to the agricultural cooperative and to the head of local self-government. Peasant farm shall be considered operative from the date of registration of peasant farm and land lease contract. Plot of land allotted to peasant farm shall be indivisible. Peasant farm shall be granted the right of access to land based credit through mortgage of land lease contract.
