Singapore to give land on 20-year lease
62 farms in Lim Chu Kang which are affected by redevelopment plans with tenures expiring in 2017 will also have their tenures extended till end of 2019.
All new agriculture land will be tendered based on 20-year lease instead of the previously announced blocks of 10 years. This policy change is a result of AVA’s engagement and consultation with farms.
Tan Poh Hong, AVA’s CEO said, "In order for our agriculture sector to grow, it is important for us to understand our farms’ challenges and concerns.
AVA has been engaging our local farms regularly and farmers have given us feedback that investing in technology and automation requires a longer pay back period.
The longer 20-year lease tenure will provide more certainty to farms and enable them to invest in intensive, highly productive technologies that operate on minimal manpower."
In 2014, the government had informed 62 farms in the Lim Chu Kang area that their leases will expire in June 2017, and that the land they occupy will be needed for redevelopment.
They were also informed that new farm sites would be available for tender in end 2015. Due to extensive land preparation works needed at the new sites, the 1st tranche of land sales will be launched from early 2017.
To cater for sufficient transition time, the leases of the affected farms will be extended to end of 2019 instead. This extension will give farms more time to transit to the new sites. ■