Revenue test
Corporate form or an activity code alone does not qualify the debtor.
RUB 3 million threshold
A special commencement threshold applies to this debtor category.
Preserve the complex
The enterprise and production complex are first offered as a whole.
Who qualifies?
Article 177 looks at actual revenue: agricultural production or production and processing must account for at least 50%. A fishing artel follows the special regime where the relevant revenue share is at least 70%.
An LLC, joint-stock company or cooperative may qualify. A trader reselling third-party produce does not qualify automatically. A peasant farm headed by an individual entrepreneur follows separate Articles 217–223.
Commencement tests
| Test | Rule | Evidence |
|---|---|---|
| Main activity | Production or production and processing | Operations, contracts and reporting |
| Revenue share | At least 50% | Financial and tax records |
| Claims | At least RUB 3 million | Judgments and calculation |
| Default | More than three months | Contract due dates and payments |
| Land rights | Transfer restricted by land law | Register, lease, category and permitted use |
Seasonality
During supervision, the analysis must consider production cycles, natural conditions and income expected after completion of agricultural work. A temporary gap before crop sale is not automatically permanent insolvency.
Financial rehabilitation and external administration may run through the relevant agricultural period and product sale. Extraordinary events such as natural disasters or epizootics may support statutory extensions if the legal conditions are met.
Land and sale sequence
Land transfers only within land-law restrictions. The administrator first offers the debtor’s enterprise at auction, then the production and technology complex as one lot. Only after those attempts may assets be sold under later rules. Adjacent agricultural producers receive the statutory preferential opportunity at the specified stage.
Practical steps
- Calculate the supported agricultural revenue share.
- Verify the RUB 3 million threshold and three-month default.
- Prepare a production and sale calendar.
- Inventory land, machinery, livestock, inventory and leases.
- Review security, subsidies, insurance and support programmes.
- Value the operating enterprise and complex as a whole.
See peasant farm bankruptcy, corporate bankruptcy and bankruptcy auctions.
Frequently asked questions
Is an agricultural activity code sufficient?
No. Actual activity and the statutory revenue share control.
What minimum debt is required?
Aggregate claims of at least RUB 3 million overdue for more than three months.
Is a future harvest considered?
Yes, where a documented forecast is tied to a specific production and sale period.
Can land be sold to any buyer?
Only under land-law restrictions and the special auction rules.
How is this different from a peasant farm?
Articles 177–179 concern qualifying legal entities; the farm-head regime is separate.
Official sources
Agricultural business facing a cash gap?
We can assess qualification, seasonal cash flow, assets and available procedures without promising a predetermined result.
Initial consultation