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Buying a farm: the complete guide

Published at August 21, 2024 by Bernard Charlotin
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Buying a farm: the complete guide

Updated on April 8, 2026: Find the most recent data on land prices on our Land Price Observatory (2020-2025 DVF data) which presents average and median prices, as well as transaction ranges for your region and each department.

Are you looking for an agricultural farm for sale?

Buying a farm is a process that can be complex and is a life-changing decision.

In this article, we present all the important points you need to know to successfully acquire an agricultural holding. For each section, you will find a list of additional articles to complete your information.

Summary
Finding a farm for sale
1.1 Family takeover
1.2 Setting up outside the family framework
The price of a farm
2.1 How much does a farm for sale cost?
2.2 Additional investments
2.3 Costs associated with buying a farm
Agricultural training
3.1 Why train in agriculture?
3.2 What agricultural degree is needed to set up as a farmer?
The Rural Lease
Financing the purchase of a farm
5.1 Self-financing
5.2 Bank financing
5.3 The forecast study
5.4 Installation grants
5.5 Other sources of funding
Taxation and social charges
6.1 The MSA, the agricultural social regime
6.2 Income tax regimes
6.3 Agricultural VAT
The legal dimension
7.1 The legal status of the farm
7.2 The sales agreement
Diversification in agriculture
Urban planning
Steps for buying a farm
10.1 Steps of your agricultural project
10.2 Registration with the business formalities center
10.3 Structural Control
10.4 Classified Facilities
10.5 The SAFER's right of pre-emption
10.6 Insuring your agricultural activity
In conclusion

Finding a farm for sale

Searching for an agricultural estate is not always easy, especially if you are not the child of a farmer and/or cannot take over the family farm.

Family takeover

The majority of start-ups (around 2/3) in agriculture are still carried out within the family framework. While finding the farm to take over may seem simple, it often occurs within the context of expansion and partnership.farm

The "classic" path is often as follows: the young farmer takes over a neighboring farm or agricultural land and joins forces with their parents. Expanding allows for an increase in the farm's total income, which is then shared between parents and children.

Having a detailed knowledge of the neighborhood is an asset for contacting potential sellers near the family farm. Financing the takeover is facilitated by the support of the family agricultural holding.

The transfer of the family farm then takes place when the parents retire. This stage can be complex as it requires broad reflection, particularly from a financial and heritage perspective:

  • What is the valuation for the farm being transferred?
  • Should a "donation-partage" (inter vivos distribution) be considered?
  • How to ensure equity between the child taking over the farm and the others?
  • How will the young successor finance the takeover?
  • What income will the retired parents have (pension, land rent, etc.)?
  • How to manage the workload after the parents retire?

It is a process that cannot be improvised but instead requires foresight. Using external advisors (accounting firms, notaries, banks, Chamber of Agriculture) is invaluable as it helps in asking the right questions.

Setting up outside the family framework

A specific term designates people who wish to become farmers without being from the industry: NIMA (Non-Issus du Milieu Agricole - Not from an Agricultural Background). The existence of this term reflects the specificities of this group, whose primary difficulty is finding a farm to take over.

While the press often highlights the major challenge of generational renewal in agriculture, one might think it is easy to find farms to take over.

This is not the case because the majority of farms are taken over either within the family or as part of an expansion. Land pressure therefore remains high across France.

The number of farms dropped from 490,000 in 2010 to 390,000 in 2020. At the same time, the average size of a farm increased from 55 to 69 hectares (Source: INSEE – Number of holdings).

Therefore, you must use all existing services to find a farm for sale. Here are a few:

  • RDI (Répertoire Départ Installation): Managed by the Chambers of Agriculture, it lists many farms to be taken over or companies looking for partners.
  • Propriétés rurales: This is the website for properties for sale via the SAFER.
  • Ma-propriete-agricole.fr: Our site lists a large number of advertisements for farms to be taken over. These ads are published either by farmers or by real estate professionals (agencies, notaries, land experts, etc.).
Learn more:

The price of a farm

How much does a farm for sale cost?

The sale price of agricultural holdings varies greatly. For example, you can find large-scale crop farms of several hundred hectares for sale on our site for a price well over €5 million.field with tractor

Conversely, you can also find small farms for less than €100,000 comprising a few hectares of land and small agricultural buildings.

Mostly based on a valuation of assets, the price will depend on both the surface area of the farm to be purchased and the various elements that compose it:

  • Agricultural land
  • Agricultural buildings
  • Agricultural machinery
  • Livestock present (for livestock farms)
  • Stocks (crops in the ground, harvested products, raw materials, etc.)
  • The presence of a dwelling house
  • ...

To evaluate the land portion, refer to our Land Price Observatory which summarizes real transactions from DVF data: in 2024, the national average price was €6,038/ha, with very high regional disparities (from €2,904/ha in Bourgogne-Franche-Comté to €13,007/ha in PACA).

In Brittany, the average price of a farm is close to €300,000 (for an individual agricultural setup). This average hides strong disparities depending on the size of the farm taken over and the intended production. For example, the average cost of a dairy farm was €687,000 in 2023 (source: Chamber of Agriculture Brittany - 2023 Figures).

The purchase price of a farm must therefore be considered in light of each project, the profitability of the operation, the necessary means of production, and local prices which can vary significantly.

Additional investments

Buying a farm may require additional investment. Depending on your project, you may need to renovate buildings, acquire machinery or additional livestock, etc. You must calculate the amount of these investments right from your initial purchase.

Some of these investments may be mandatory to meet standards (classified facilities, sanitary protection for livestock, electrical upgrades, etc.).

The same applies when buying a dwelling house, where it might be necessary, for example, to install a new individual sanitation system.

Costs associated with buying a farm

In addition to the purchase price of the farm, you will certainly have additional costs:

  • Agency fees: generally between 4% and 7% of the sale price. Sometimes these are directly handled by the seller.
  • Notary fees: when signing the final deed of sale, you must pay deed fees which include registration duties (5.89% on the value of the buildings) plus disbursements and notary fees, totaling between 7% and 8% of the price.
  • Loan and guarantee fees: Financing may require the implementation of guarantees such as a mortgage, which increases the notary deed fees.
  • Economic study: This will be essential if you need bank financing. You will need to contact an advisor from the Chamber of Agriculture or an accounting firm to carry out this forecast study.
  • Consulting fees: for support with the installation, the choice of legal structure, installation procedures, etc.

Learn more:

Agricultural training

Why train in agriculture?

It is entirely possible to become a farmer without having an agricultural degree. However, the path will likely be more difficult.

Having a diploma will facilitate obtaining:

  • Bank financing
  • Installation grants
  • Administrative authorizations (authorization to operate, etc.)
  • ...

The investment for purchasing a farm is high. You will likely need external financing for this purchase.agricultural field

A bank will lend you money if your project is viable (economic study) and if the risk is limited.

Crops and livestock are highly specialized activities that require technical skills. The banks you approach will pay close attention to your skills, which are the result of your training and experience.

Training is therefore a guarantee of competence that reduces risk and facilitates obtaining a loan.

What agricultural degree is needed to set up as a farmer?

To claim installation grants, you must hold the Agricultural Capacity. This is obtained either through professional experience or through an agricultural degree of at least Level IV.

This corresponds to a training level of:

  • Baccalauréat (professional or technological)
  • Brevet Professionnel (Professional Certificate)

The range of agricultural training is very wide and provided by many public and private institutions throughout France.

It is possible to follow a BPREA (Brevet Professionnel de Responsable d’Exploitation Agricole) as part of continuing education. You can also validate certain "Unités Capitalisables" (UC) through the VAE (Validation des Acquis de l'Expérience - Validation of Prior Experience).

If you only have a Level III agricultural degree (CAPA, BEPA, BPA), you must justify a professional agricultural activity of at least 24 months over the last 3 years.

In the absence of a Level III or IV agricultural degree, you must justify at least 40 months of professional agricultural activity over the last 5 years.

Learn more:

The Rural Lease

One cannot talk about buying a farm without addressing the issue of rural leases (Articles L411-1 et seq. of the rural code). Indeed, more than half of the agricultural land in France is operated under the "statut du fermage" (tenant farming status).

Buying a farm rarely happens without renting part of the land. This may be a choice by the owners who wish to receive rent (fermages), or a requirement of the financing plan.

Indeed, it can be difficult to buy all the land during an initial installation. Using bank financing to buy land is generally more expensive than paying rent.

We have dedicated a series of articles to the specific regulation of rural leases which we invite you to consult for more information.

Main points to remember:

  • Presumption of rural lease: any paid rental of agricultural property is a rural lease, even in the case of a verbal agreement.
  • Minimum duration of 9 years: the lease can be longer but not shorter.
  • Automatic right to renewal: the lease is renewed for the benefit of the tenant at the end of the initial term.
  • Rent control: rent for agricultural land is restricted by minimums and maximums defined at the departmental level.
  • Rent indexation: the evolution of rent is defined by a national index.
  • The planned sale of land is not a ground for termination or non-renewal of the lease.
Learn more:

Financing the purchase of a farm

This is a key step in the steps for buying a farm. Given the global need for your investment (purchase price, additional investment, ancillary costs), you must find equivalent financial resources.grass field

Self-financing

Self-financing is the savings you invest in your project. There is no regulatory minimum for self-financing, but banking institutions generally prefer project carriers to have self-financing of around 20%.

Bank financing

Banks are the primary financiers of agricultural projects. While all credit institutions can support an agricultural project, some banks (Crédit Agricole, Crédit Mutuel, Banque Populaire, etc.) have dedicated services with specialized advisors.

They are therefore able to understand your project, support you, and advise you.

The forecast study

As part of the examination of your financing request, you must submit a multi-year forecast study, also known as a Business Plan. This document, produced by a professional, aims to verify that the future profitability of your farm will allow you to meet your charges, repay your loans, pay yourself a salary, and meet additional investment needs.

Installation grants

Agricultural capacity allows you to apply for grants for Young Farmers (JA) if you are under 40 years old.

You will need to follow a process that includes completing a Personalized Professional Project (PPP) and presenting a Business Project (economic study over 4 years).

Specific installation aids include:

  • DJA (Dotation Jeune Agriculteur): ranging from €8,000 to €36,000 for a full-time farmer.
  • A partial exemption from tax on agricultural profits for 5 years.
  • A partial exemption from social security contributions for 5 years.
  • Possible revaluation of Basic Payment Rights (subsidies paid by the Common Agricultural Policy).
  • ...

The beneficiary must commit to several conditions for at least 4 years, including:

  • Remaining the head of the holding.
  • Keeping management accounts.
  • Implementing their Business Plan.

The Chambers of Agriculture in each department include an Installation Reception Point (PAI) that supports you in all the steps to benefit from these grants.

It is also possible to request other aids from:

  • Agricultural cooperatives.
  • Local authorities: municipalities, inter-municipalities, departments, regions.
  • ...

Other sources of funding

You can also mobilize other financing solutions:

  • Vendor credit: you pay part of the sale price to the seller in the form of payments spread over time, accompanied by a defined interest rate.growing money
  • Family loan: you call on your relatives to obtain a personal loan.
  • Investors: you call on an investor to buy land which they then rent to you. You can also find an investor who brings self-financing by becoming a partner in your company.
  • Land carrying (portage foncier): you call on an organization that buys the land on your behalf to rent it to you later. You generally benefit from a purchase option after a few years.
  • Crowdfunding: you appeal to private lenders through online crowdfunding platforms.
  • ...

We have dedicated a series of articles to alternative financing, including land carrying solutions and crowdfunding specific to agricultural projects.

Learn more:

Taxation and social charges

The MSA, the agricultural social regime

A farmer falls under the social regime of the Mutualité Sociale Agricole (MSA) and not the general Social Security regime.

The MSA is unique in that it groups all social protection for farmers into a single regime: health insurance, family benefits, workplace accidents, professional training, and retirement (basic and supplementary).

Agricultural social contributions are calculated on agricultural income. The choice of your tax regime therefore has a strong impact on the amount of your MSA social contributions.

SOCIAL CONTRIBUTION REDUCTIONS FOR YOUNG FARMERS

Young farmers benefit from a reduction in their social contributions spread over 5 years.

 

% exemption

Exemption cap

1st year

65 %

€3,204

2nd year

55 %

€2,711

3rd year

35 %

€1,725

4th year

25 %

€1,232

5th year

15 %

€739