The government is working on a comprehensive project regarding the lease of agricultural property

The introduction of two types of agricultural lease agreement – short -term and long -term, as well as the principles that they can only be included in writing are provided for in writing, provide the assumptions of the bill published in the list of legislative works of the government. The new regulations are to be adopted at the end of the year.

On Monday, the government's legislative work was announced about the work on the draft law on agricultural lease; It is to be adopted by the government in the fourth quarter of 2025.

As explained, the preparation of new regulations is to comprehensively regulate the ratio of the lease of agricultural property and farms. “In connection with the increasing universality of its use (lease – PAP), it becomes one of the basic elements of shaping the area structure of farms. In addition, institutions regarding agricultural lease will be introduced, which will better meet the needs of tenants than the existing, properly used regulations on the lease,” it was informed.

The new provisions will regulate: the method of concluding the contract (including its form), the rules for the payment of rent, the rights and obligations of the parties to the contract, issues of the legal succession, the manner of termination of the contract.

“The proposed regulations have been constructed in such a way as to consolidate (stabilize) the lease ratio, ensure its continuity, and balance the position of the parties to the lease agreement,” it was emphasized.

The list explains that the subject of the contract may be farms or agricultural properties, excluding real estate and farms included in the agricultural ownership of the Treasury. “Pursuant to the Act, the agricultural lease agreement has a written form with a certain date. It may contain a protocol (constituting an attachment), which contains a description of the subject of the lease (area, condition at the time of transfer),” it was informed.

The new regulations will distinguish between two types of lease contracts: short -term (up to 5 years) and long -term (more than 5 years to 30 years). “Long -term contracts are preferred, e.g. by enabling the parties to make such a contract after 10 years a change in the amount of rent,” he added.

The planned act will also specify the deadlines and principles of rent payment, but it will be able to modify it by e.g. a change from non -cash to cash, reduction of rent due to extraordinary circumstances or as a result of compulsory expenditure that disturbs the use of the lease.

The Ministry of Agriculture also reported that the new law is to strengthen the position of the tenant, but with securing the rights of the lessor. “The tenant may demand from the lease of the expenditure, without which the tenant may not use the subject of the lease. The tenant may also make with the consent of the leasebar or the court (if there is no such consent) expenditure necessary to increase production capacity. In turn, the lessor has the right to enter the subject of the lease in order to check the performance of obligations by the tenant. The lease also has the right to receive information about plans. production tenant ” – explained.

The new law also assumes the possibility of changing the tenant in three strictly defined cases, i.e. when the tenant: reached the retirement age, transfers his rights and lights to the spouse or descendants, and transfers his farm to the successor within the meaning of the provisions on social insurance for farmers.

The list also announces that the draft act also regulates the issues of termination of the lease agreement, settlement of expenditure and assumes priority of the tenant with re -leaseing 50 percent. the subject of the lease. (PAP)

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