Agrowill Group maps out land use strategy

The newly elected Board of Agrowill Group AB has approved the directions and objectives of its activities related to the leasing of its assets to third parties.
One of the areas of the Company’s activity is leasing of own land to farmers.  Only some 2,700 hectares of own land is used for the production activities of Agrowill agricultural companies. The remaining land, which is divided into small plots of land (up to 50 hectares) scattered all over Lithuania, is leased to third parties.
In 2010, income from the lease of 12,900 hectares of land owned by Agrowill Group is expected to reach LTL 2.9 million. 
The Board of the Company has decided to revise the prices of the plots leased and has set itself the objective of consolidating the plots and leasing them to a smaller number of farmers.  Some of the plots will be leased to companies developing wind power plant parks. Some of them will be used by Agrowill agricultural companies for performing alternative agricultural activities.  All this will enable the group of agricultural companies to boost its incomes. 
The Board has set itself the objective of increasing its total income from lease to LTL 4.0 million in 2011 and to LTL 5.5 million in 2014.
“Land lease prices are directly related to EU payments to farmers.  These payments are increasing every year.  Nevertheless, Lithuania still ranks third from the bottom among other EU member states in terms of the amount of payments.  Therefore, we can expect total payments to Lithuania to increase after 2013 and equal those made to other EU countries.  The opinion that the payments should be equalised in EU member states has already been voiced in Brussels.  Agrowill Group has also sent its proposals to the competent EU authorities,” Algirdas Pereckas, General Manager of Agrowill Group , said.

For more information, please contact:
Algirdas Pereckas, General Manager of Agrowill Group, tel.  +370-699-14227

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