Farm leases in derogation in Italy: how they work and how they differ from the 15-year rule

A farm lease "in derogation" (affitto agrario in deroga) is a contract where the owner and the tenant agree on rules different from those of the law on agricultural contracts. It is valid only if signed with the assistance of the professional farmers' organisations. The standard rule is a minimum length of 15 years.

The standard rules

Law 203 of 3 May 1982 on agricultural contracts sets a minimum length of fifteen years for leases to direct farmers (coltivatori diretti, farmers who work the land themselves). The same minimum applies to leases to tenants who are not direct farmers (art. 22).

The other standard rules to know:

• Automatic renewal: without notice, the lease renews for another 15 years (art. 4).
• Notice: it must be sent at least one year before the end date, by registered letter with return receipt (same article).
• Mountain areas: where the regions allow it, the minimum length for small plots drops to 6 years (art. 3).
• Rent: under the standard rules it follows the criteria of the law, and the provincial technical committee updates the coefficients every year (art. 10, art. 14).

What article 45 allows

Article 45 says that agreements between the parties are valid "even in derogation from the rules in force on agricultural contracts". The condition is the assistance of the most representative national professional farmers' organisations, through their provincial offices. Settlements reached before a judge are also valid. In Trento and Bolzano, a provincial organisation can also assist.

The law does not list what can be changed: it refers to all the rules on agricultural contracts. The minimum length and the rules on rent are rules of that law. For this reason, with the required assistance, the parties can agree on a length and a rent different from the standard ones.

New sharecropping contracts remain banned in any case: mezzadria, colonia parziaria and compartecipazione agraria (except seasonal ones and soccida, a livestock partnership). Paying sums as "entry money" (buona entrata) is also banned. Farmers' organisations can also sign collective agreements.

If the assistance is missing

Article 58 declares all the rules of the law mandatory. Agreements that conflict with them are void "by operation of law", and the judge can declare them void even without a request. The cases in articles 45 and 51 are the exception.

So a clause that shortens the 15 years without the required assistance conflicts with article 1 and is void. As a general rule, the Civil Code says that a void clause does not bring down the whole contract when mandatory rules automatically take its place (art. 1419, second paragraph).

Registration

According to the Agenzia delle Entrate (Italy's Revenue Agency), leases of property, including farmland, must be registered within 30 days of signing, or of the start date if earlier. The tax for farmland is 0.50% of the annual rent multiplied by the number of years. On top of that comes a stamp duty of 16 euros every 4 pages, and in any case every 100 lines (rates).

For farmland leases not made by public deed or authenticated private deed there is an alternative: the annual cumulative declaration (denuncia cumulativa), to be filed by February.

For your own case, ask your farmers' organisation or an adviser. If you have land to lease, what length do you have in mind and what kind of tenant are you looking for?