A tenant farmer needs legal certainty in order to manage his or her time-limited lease properly. Land tenancy laws regulate the duration of the lease, the rent and compensation for any investments made between the lessor and the tenant.
The lessor and the tenant enter into a tenancy agreement in which the lessor agrees to grant the tenant the right to use the leased object and enjoy the fruits thereof (if regarded as yields under the principles of good farming practice) during the tenancy period.
If the tenant manages the farm well, the owner can sell the land at a higher price. To compensate the tenant, he or she should be given the right of first refusal in the event of a sale. Traditional farm management systems can be legalised with adapted tenancy law.
- A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
- Clear and coherent political strategy and targets for policy-makers and public authorities
- Clear responsibilities in public authorities
- Close cooperation and knowledge sharing with farmers' organisations
- Jurisdiction or arbitration body with locally recognised authorities
- Property / land register / formal land rights
- Regulatory framework
- Skilled / specialised personnel to man the respective institutions / provide the respective services
Possible Negative Effects
- Loss of value of the land and therefore loss of capital for the owner if the tenant has managed the farm poorly