Agricultural land – what you need to know

Good morning from the countryside!

If you are reading this article, you have surely thought at least once about purchasing/renting/borrowing agricultural land!

Today, I am here to give you some advice to help you make the best choice for you, explaining the different types of agricultural land available so you can indulge your passion!

At the end of all this talk, I will tell you what I have.

What is your goal?

When considering purchasing land, we must first think about our objective.

Would you like to grow a vegetable garden for your family? Do you already have a farm, or are you thinking of starting one in the future?

If you are thinking of cultivating a family vegetable garden, my advice is to consider renting or borrowing land for various reasons, which I will explain below.

However, if you want to start a farm in the future (or already have one), consider purchasing or renting land.

What is a free loan for use?

The loan for use is a free solution that does not require any initial investment. At this point, you might say, ‘Well then, what could be better than this?!’

When it comes to saving money or even getting something for free, there are always catches.

Those who wish to grant a free loan for use of their land are not interested in selling or renting it. The advantages for the owner are that they will have a clean piece of land (thanks to you) without having to spend money on weed removal, perhaps having to call in a tractor or even doing the work themselves (otherwise, they could face complaints from both private individuals and the local council for failing to keep the land clean).

As I mentioned, there are some drawbacks for both you and the owner!

First of all, there must be a great deal of trust on both sides, as there is no registered contract (you can, however, draw up a private agreement).

For example, if one day the owner wanted to cultivate the field himself or sell it to others, he could do so without any problems. You may have spent money and effort to clean it up and make it cultivable, but that doesn’t matter because the field is not yours and you don’t rent it.

So, if you want to take over the field, you cannot make long-term plans, you cannot think about fencing it in, putting in a well for water, connecting it to the electricity supply and incurring many other expenses that one normally incurs in order to cultivate it. Or rather, you can do all these things and much more if the owner agrees, but be aware that you are not entitled to any recognition. In fact, as mentioned before, the owner can take back what is his property at any time.

If, on the other hand, you are the owner of a field that has been loaned for use, you must be careful about other issues. In fact, if something happens, such as a fire, damage to the fence, building abuse, or worse, an accident causing harm to those who cultivate it, YOU ARE RESPONSIBLE. Yes, because since there is no contract in place, that field is yours, so whatever happens on that field, you are responsible.

So is it better to save money or not have rights? Consider your choice carefully and be aware of the consequences!

How does renting land work?

The lease of agricultural land requires a minimum annual or monthly payment to be agreed upon with the owner.

However, the costs are very affordable and within everyone’s reach. In fact, the annual expense can be around a few hundred pounds for a 3,000 square metre plot, although there are several factors that affect the price.

There are price references based on location, the presence or absence of electricity and/or water for irrigation, whether there is a fence, and whether the road leading to it is unpaved.

The one thing that is certain is that it is the landowner who decides the starting price!

However, do not be discouraged because, having agreed in advance with the owner, you can pay in agricultural goods instead of cash. Remember that this option is also available.

Therefore, with a registered contract, you can feel more confident about making even small investments.

One advantage for the owner is that they are NOT liable for any damage, accidents or fires that occur on the land, which are the responsibility of the tenant.

However, the tenant is in no way responsible for any building violations on the property if they occurred before the contract was signed. In this case, remember to draw up a private agreement with the owner that releases you from any liability.

Where should you sign a contract?

Once you have agreed with the owner on payment in goods or cash and other matters relating to the field, you are ready to sign!

I recommend that you go to a trade association (Coldiretti, Cia or Unione agricoltori), which is much more experienced and competent in this area than a common surveyor, protecting both parties.

Registration costs and contract validity

Normally, registration fees are paid by the tenant and are around €60-70.

I recommend that you sign a contract with a minimum term of 10 years so that you can make some investments.

If you already have or are thinking of starting a farm on that land, when the contract expires you will have the right of first refusal, which means that the owner cannot sell or rent the land to anyone else without first consulting you!

Costs and purchase of agricultural land

As I mentioned above, there are many variables, but as a rough guide, land can cost anywhere from €2 to €50 per square metre.

The registration costs are different from those for renting, as this is a sale and therefore a notary must be present. In addition, if you need to take out a mortgage for the purchase, the notary’s fees will increase.

This applies to both renting and buying agricultural land if you are a farm: if your neighbour wants to sell/rent their land, they must first ask you, so in this case too, the right of first refusal applies!

Are you sure that purchasing is the right choice?

It is an important decision that should not be taken for granted! An important consideration is certainly, ‘Have you tried growing crops on that land?’ Or, ‘Do you know what crops to plant there and whether that land is suitable?’

I hope I have raised some questions for you to consider before purchasing, especially if you intend to cultivate it for financial gain.

I don’t own all the fields either; in fact, many of them are rented. This is because, as I said, I want to carefully assess their condition and also because I don’t have much money set aside to invest in a purchase!

What is the ideal size to start with?

I receive lots of messages asking me how many square metres you need to start growing a small vegetable garden, so here is my advice!

For a family vegetable garden intended to feed 2-3 families, I suggest starting with 500 square metres and then deciding at the end of one or two growing seasons whether to expand or not!

If you want to start a farm, the size is larger, starting with at least 3-5 thousand square metres!

Write to me in the comments if you have purchased land, what type of contract you signed, if you have had any bad experiences, in short, let me know below!

See you next time!