Invest in agricultural land rented by rural lease and receive an annual rent.
Do you want to buy farmland leased under a rural lease? www.ma-propriete.fonciere.fr is the advertising portal that will enable you to buy occupied farmland.
Buying farmland is a way of diversifying your assets and has many advantages
The price of farmland rented by lease is on average €4,930 per hectare in France, i.e. on average 20% less expensive than free land. The average rent is between €150 and €220 per error, which gives a gross rental yield of between 3 and 4%. However, farm prices are regulated in each department, which does not allow an investor to freely set his rent and therefore his profitability. Furthermore, the average market value of agricultural land hides very large disparities and in practice rental yields are between 1 and 5%. The most expensive cereal lands do not allow (except for not applying the statute of the farm with the risks of revision) to strongly increase the rents.
The interest of an investment in agricultural land also lies in the evolution of its value over time and its relative disconnection from traditional financial markets.
If you rent this land under a long-term lease, you can benefit from tax advantages. Indeed, you can then benefit from an allowance on the value of your land in the context of an inheritance, a donation or for the purposes of the Impôt sur la Fortune Immobilière. Agricultural land is in fact exempt from tax up to 75% of its value when it does not exceed 101,897 euros (article 793 paragraph 2 of the general tax code). Above this amount, the exemption is 50% of their value.
Your tenant, in order to farm the land you are going to buy, must obtain a farming authorisation under the Contrôle des Structures. This authorisation is required above a reference area that varies in each department. The SAFER, which has a right of pre-emption on sales of agricultural property, will also examine your project after notification by the notary. If the SAFER considers that another buyer may have priority over your project, it can block your project by pre-empting the sale of the land within a maximum of 2 months after the notification.
