For this 3rd article in our series dedicated to the specificities of rural leases, we have chosen to talk to you about farm rent (fermage): its calculation method, its annual review and the payment of property taxes.
The rent for agricultural land and buildings is not freely set between the parties. It is framed by minimums and maximums set at the level of each department by a prefectural decree (article L411-11 of the rural code).
This decree is updated every year after publication of the national farm rent index. Another prefectural decree details the methods for calculating the farm rent according to criteria for each plot.
Even if in practice, the parties refer very little to this document to fix the amount of the farm rent, it is this document that will apply in the event of a conflict between the parties.
Indeed, during the 3rd year of the lease, the farmer can request a review of the amount of the farm rent if he considers that it is at least 10% higher than the normal amount that should apply.
It should also be noted that the amount of the farm rent for agricultural buildings and for a residential house are also defined by prefectural decree.
In practice, the farm rent is calculated from agricultural income indices and not directly from the market value of the land. However, as a reference, the annual farm rent generally represents 1.5% to 3% of the market value of vacant land. With a national average price of €6,038/ha (2024 DVF data from our Land Price Observatory), the theoretical farm rent would be between €90/ha and €180/ha/year, which corresponds well to the ranges of the ministerial decree in regions with median prices.
Property taxes are the responsibility of the owner. However, he may request a partial reimbursement from his tenant. The only prohibition is for the amount of the farm rent to be fully borne by the tenant. 
In the absence of an agreement between the parties, the rural code provides for reimbursement of up to 20% of the communal and inter-communal tax, 50% of the Chamber of Agriculture costs and 8% of management costs.
Finally, it should be noted that the owner may see property tax exemptions on their tax notice. These exemptions must benefit the tenant and not the lessor. The owner must therefore deduct these amounts from the total farm rent due by his tenant.
This last provision is often a source of conflict between tenant and lessor, the latter considering that this aid should come to him.
The farm rent is revalued each year according to an index set at the national level. This index applies to reviews of rents due as of October 1st of the year:
Author's note: The information we present is purely informative and educational in nature and cannot substitute for an analysis carried out by a rural law professional. In the event of a conflict, difficulty, etc., we invite you to contact one of these professionals (lawyers, notaries, rural law jurists, etc.).
