Assignment of a rural lease: when the authorisation to farm dispenses with professional capacity

Imagine: you own agricultural land in Guipavas, which you have leased for twenty years to a farmer. The farmer, nearing retirement, wishes to assign his lease to his son, a young farmer who has just set up. You wonder: does this son have the required qualifications? Must he prove experience? What if the answer is that he does not need to, because he has already obtained an authorisation to farm?

This is exactly the question decided by the Court of Cassation in a judgment of 12 April 2018. The judges held that the assignee of a rural lease who benefits from an authorisation to farm (or who is an operating member of a farming company benefiting from such authorisation) is not required to satisfy the conditions of professional capacity or experience provided for by the Rural Code. In other words, the administration has already verified his skills when granting the authorisation: there is no need to verify them a second time.

This decision, rendered in a dispute between landowners and their tenant, directly concerns all players in the agricultural world: landlords, tenants, assignees. It secures lease transfers and avoids costly litigation. But beware: it only applies to assignments made before the Future of Agriculture Act of 13 October 2014 and its implementing decree of 22 June 2015. Since then, the rules have changed.

The facts: a story that happens every day

Mr X, owner of agricultural land in Guipavas, granted an oral rural lease to Mr Y. The latter, a conscientious farmer, never failed in his obligations. But one day, Mr Y decides to assign his lease to an agricultural company (a Groupement Foncier Agricole, or GFA) of which he is a member. The company has already obtained an authorisation to farm from the Direction Départementale des Territoires et de la Mer (DDTM).

Problem: the landowners consider the assignment void because the assignee (the company) does not prove the professional capacity or experience required by the Rural Code. They sue Mr Y and the company before the tribunal paritaire des baux ruraux of Brest. The court rules in their favour: it annuls the assignment and orders the company's eviction. Mr Y and the company appeal.

The Court of Appeal of Rennes reverses the judgment: it validates the assignment, holding that the company, benefiting from an authorisation to farm, was exempt from proving its professional capacity. The landowners appeal to the Court of Cassation. The Court of Cassation dismisses their appeal and upholds the appellate decision. The reasoning is simple: the authorisation to farm is granted after verifying the applicant's skills. Requiring a new proof of capacity would impose a double condition, which the law did not provide for.

What few people know is that this case lasted nearly five years. Between the notice of termination due to age given by the landowners and the final judgment, Mr Y continued to farm, but under threat of eviction. A stressful situation that could have been avoided with prior legal advice.

The court's reasoning — dissected

The Court of Cassation relies on Articles L. 331-2 and R. 331-2 of the Rural and Maritime Fishing Code, in their version prior to the Act of 13 October 2014 and the Decree of 22 June 2015. These texts require, for the operation of land, professional capacity or experience (e.g., an agricultural diploma or five years of practice). But they also provide that this condition is satisfied if the tenant has obtained an authorisation to farm.

In short: the authorisation to farm, granted by the administration after a full investigation, attests that the beneficiary meets the legal conditions. Therefore, the judge does not have to verify the assignee's capacity again. The Court of Cassation states explicitly: 'The assignee who benefits from an authorisation to farm is not required to satisfy the conditions of professional capacity or experience.'

But what does this actually change? Before this judgment, some courts required the assignee to prove his capacity even if he had an authorisation. Now the case law is unified: the authorisation is conclusive. However, note: the decision only concerns assignments of rural leases. It does not apply to new installations, which remain subject to obtaining prior authorisation.

undefined, I have come across cases where landowners, like those in Guipavas, tried to oppose an assignment by invoking the assignee's lack of diploma. But as soon as the latter had an authorisation to farm, the opposition was doomed to fail. This decision confirms that administrative control prevails over judicial control.

The judges also reminded that the landlord cannot reproach the tenant for a breach of his obligations if the tenant performs the lease correctly. In this case, Mr Y had always paid his rent and maintained the land. The assignment to an authorised company was not a ground for termination.

What this means for you — concretely

If you are a landlord in Lesneven or elsewhere, this decision directly concerns you. You can no longer refuse an assignment of lease on the ground that the assignee has no agricultural diploma, as long as he has an authorisation to farm. Your only leeway is to verify that the authorisation has indeed been granted and is still valid. If you believe the assignee is not competent, you must address the administration, not the court.

If you are a sitting tenant and wish to assign your lease to a family member or a company, you can do so without fear, provided the assignee obtains an authorisation to farm. This authorisation is granted by the DDTM of your department (e.g., Finistère for Guipavas). The processing time is generally four months. Once obtained, the assignment is secure.

If you are an assignee, you must imperatively apply for the authorisation to farm before signing the assignment. Otherwise, you risk annulment of the assignment and eviction. In a recent case, a farmer in Lesneven lost his lease because he failed to make the application: the landowners obtained termination and re-let the land to a third party. The damage? Over €20,000 in lost rent and years of litigation.

Finally, for rural property professionals, this decision simplifies transactions. You can advise your clients to favour the administrative route (authorisation to farm) over the judicial route in case of dispute. This reduces delays and costs.

Four tips to avoid this type of dispute

• Obtain the authorisation to farm before any assignment: Never sign an assignment of lease without the assignee having obtained the administrative authorisation. This preliminary formality is key to avoiding a challenge. Allow four months for processing; plan ahead.
• Verify the validity of the authorisation: The authorisation to farm may be subject to conditions (maximum area, duration, etc.). Ensure the assignee complies with them. An expired or non-compliant authorisation may be challenged.
• Draft a proper notice of termination due to age: If you are a landlord and wish to take back your land to farm it yourself, serve notice to the tenant in the proper legal form (18 months' notice before the end of the lease, mention of your professional capacity). A poorly drafted notice may be annulled.
• Consult a lawyer solicitor at the first sign of trouble: A simple discussion with a professional can save you years of litigation. In the Guipavas case, if the landowners had consulted a solicitor before suing, they would have known their opposition was futile. The cost of a consultation (€45) is negligible compared to legal fees.

Further reading: related case law and developments

Before the 2018 judgment, the Court of Cassation had already ruled on the issue of professional capacity in rural leases. In a judgment of 6 November 2013 (n° 12-21.045), it held that the assignee had to prove his capacity, even if he was a member of a company benefiting from an authorisation. The 2018 decision therefore marks a reversal: now, the authorisation to farm suffices, regardless of the legal form of the assignee.

Since the Act of 13 October 2014 and the Decree of 22 June 2015, the rules have evolved. The conditions of professional capacity have been relaxed for young farmers, but the principle remains: the authorisation to farm is a key that exempts from proving capacity before a judge. The courts continue to apply this case law, even for assignments after 2015, as long as the applicable text is that in force at the time of the assignment.

Warning: this case law only concerns rural leases. For commercial or residential leases, the rules are different. In rural lease matters, the trend is towards simplification: the administration controls, the judge only controls the regularity of the authorisation.

Frequently asked questions

Can I refuse the assignment of my lease to my son if he has no agricultural diploma?

No, if your son obtains an authorisation to farm. The authorisation attests that he meets the legal conditions, even without a diploma. You cannot oppose it.

What should I do if my landlord challenges the assignment of my lease?

You must prove that you obtained an authorisation to farm before the assignment. If so, the challenge is unfounded. Apply to the tribunal paritaire des baux ruraux to assert your rights.

How long does it take to obtain an authorisation to farm?

The processing time is about four months from the filing of a complete application with the DDTM. Plan ahead to avoid delaying the assignment.

Does this decision apply to assignments made after 2015?

Yes, if the applicable texts are those prior to the 2014 Act (e.g., if the lease was concluded before that date). For leases concluded after 2015, the new rules apply, but the principle of exemption by authorisation remains valid.

Can I be evicted if my assignment is annulled?

Yes. If the assignment is annulled, you are considered an occupier without right or title. The landlord can obtain your eviction, with damages. Hence the importance of regularising the authorisation.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of litigation — and often much more. Book an appointment →