Rural tenancies   

How to recover land leased to a farmer?

Published at February 1, 2022 by Bernard Charlotin
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How to recover land leased to a farmer?

The status of the Tenancy is very protective of the tenant. Therefore, terminating a lease to farm the land you own yourself is not a simple process. On the contrary, it is a legally complex operation that requires compliance with a very strict formalism.

 

Don't forget the farmer's right to renew and transfer  

First of all, it is worth recalling certain principles of the status of farming. A rural lease is a rental contract made for a minimum period of 9 years. This applies whether the lease is written or verbal. At the end of the initial term of the lease, it does not end because the farmer has an automatic right to renew his lease. We have developed this right to renew the rural lease in our article dealing with the sale of leased land. So a rural lease with an initial duration of 9 years is tacitly continued from 9 years to 9 years. Similarly, the farmer has the possibility of transferring the lease to his descendants. The procedure for transferring the lease must obey strict rules, but unless the lessee is at fault, it will be very difficult for the lessor to oppose it. Also, a rural lease signed for an initial period of 9 years can continue almost indefinitely, if the lessee assigns his lease (with the agreement of the lessor) to a descendant.

 

How to terminate a farm lease? 

The law (Articles L 411-58 et seq. of the Rural Code) nevertheless provides for the possibility for the lessor (the owner) to take over the buildings covered by a rural lease in order to exploit them himself.
This procedure is strictly regulated by the law and we will give you a detailed presentation. 

Form of leave 

First of all, the notice of termination must be served no later than 18 months before the end of the lease (or its renewal) by a bailiff's act. If you send the notice by registered letter, the procedure can easily be cancelled. 
Next, the notice must comply with a very strict formalism by reproducing the terms of the rural code. It must specify the surname and first name of the beneficiary of the repossession, his age, his domicile and his profession. If the property is to be exploited by a company in the context of a provisional lease, the notice must also mention this, ...  

Conditions to be respected at the level of the beneficiary 

The transferee must prove that he has the professional capacity to operate the farmland. 
There are 2 possibilities for obtaining this "professional capacity" (article R331-2 of the rural code):  

  • To have obtained a minimum level IV agricultural diploma, i.e. at least a Professional Agricultural Baccalaureate (Bac Professionnel Agricole) or a Professional Certificate of Agricultural Business Management (BPREA) 

    Or have at least 5 years' professional experience 

It should be noted that this notion of agricultural competence is also necessary to benefit from the Structures Control declaration system. 
In fact, this takeover is subject to a simple prior declaration under the Control of Structures, but subject to meeting several conditions:  

  • The beneficiary must have agricultural capacity 

  • The property must be free of tenancy on the day of the takeover  

  • The property must have been owned for at least 9 years by the beneficiary or a relative or ally 

  • The property must be intended for the installation or consolidation of the farm if its surface area does not exceed the surface area threshold of the Schéma Régional des Exploitations Agricoles 

If you buy land leased during the course of the lease and you wish to recover the land at the end of the 9 years, you must therefore obtain an Authorisation to Farm. In fact, you will not be able to benefit from the Declaration system because you will have held the land for less than 9 years.

The surface area threshold is defined by each region with equivalences according to production. Here are the thresholds in force in January 2022:  

Région (hors DOM) Surface threshold SREA
Auvergne Rhône Alpes 64 ha
Bourgogne Franche Comté 3 zones : 75 ha - 110 ha - 140 ha
Bretagne 20 ha
Centre Val de Loire 114 ha
Corse 60 ha
Grand-Est 86 ha
Hauts de France 60 ha
Normandie 70 ha
Nouvelle Aquitaine 77 ha
Occitanie 67 ha
Provence Alpes Côte d'Azur 85 ha
Ile de France 137 ha

If the transferee does not meet all of these conditions, then he will have to apply for and obtain a licence to operate. If the property is to be operated by a company, it is the company that will have to apply for and obtain the authorisation to operate. 
This Declaration, or request for Authorisation if applicable, is completed on an administrative form that you can download from the website of the Direction Départementale des Territoires et de la Mer of each department and must be completed prior to the date of acquisition. 

The commitments of the beneficiary 

The beneficiary, who deprives the farmer of a part of the land he used to farm, undertakes to farm the property for at least 9 years, either personally or within a company. This commitment cannot be limited to simple management of the farm, as the farmer must participate in the work on an effective and permanent basis and own the livestock and equipment necessary for the operation. In addition, he must himself occupy the residential buildings of the property taken over or a residence located in the direct vicinity of the farm. 
Be careful, as failure to comply with this commitment may result in the cancellation of the takeover. 

 

Possible opposition of the lessee 

The incumbent farmer can object to the termination if he is within 5 years of the age to receive a full pension. In this situation, the lease will be extended for the necessary period and the farmer loses the possibility of transferring his lease to his descendants. 
It should be noted, however, that the lessor will have to renotify the notice 18 months before the end of this extension. 

 

recolte moisson agricole

Litigation

And the farmer can of course challenge the validity of the lease either for formal conditions or for conditions related to the lessee. He also has the possibility of taking the matter to court for failure to comply with the operating conditions during the 9-year period.

 

Other cases of repossession by the lessor 

There are 3 other grounds for the lessor to give the lessee notice of termination:  

  • The lessee reaches retirement age during the course of the lease renewal 

  • Change of use of the land: the change of classification of the land, which becomes constructible, allows the lessor to take over the land during the course of the lease. The formalities are also very strict and provide for the payment of compensation to the farmer to offset his loss of business. 

  • Lessee's fault 

The procedure for taking over a rented property is therefore very complex and requires the assistance of a rural law professional to avoid any risk of nullity. Indeed, if this formalism is not respected, the owner may never regain free disposal of his property.