Assignment of agricultural lease: mandatory prior authorisation before the projected date

Imagine for a moment: you are the owner of agricultural land in Mamers, in the Sarthe. You have leased it to a farmer for years. One day, he tells you he wants to assign his lease to his son, David, a recent graduate in agriculture. You hesitate: does he have the right? Is administrative authorisation required? And if you refuse, what do you risk? This is exactly the type of question the Court of Cassation decided in a decision of 3 April 1996, which is still relevant today.

This case pits the owners, the company Le Reculet and Mr de Y..., against their farmer who wishes to transfer his lease to his descendant. The problem? The beneficiary, David, had not requested prior authorisation from the structures control authority before the projected date of assignment. The Court of Cassation quashed the judgment of the Court of Appeal which had validated the assignment without verifying this condition. A lesson for everyone.

So, what does the law actually say? And above all, how to avoid ending up in a similar situation? This article explains everything to you, step by step, with concrete examples.

The facts: a story that happens every day

Mr X, a farmer in Changé, has leased several plots to the company Le Reculet and Mr de Y... since 1980. In 1992, he wishes to retire and assign his lease to his son David, aged 22, who has just obtained a certificate of agricultural aptitude and has even been elected "best apprentice in the region". With his qualifications, David thinks he can take over the farm without any problem.

The owners do not share this view. They consider that the assignment requires prior authorisation from the structures control authority (Article L. 331-3 of the Rural Code), and that David must prove that he meets the conditions of professional capacity and experience. Before the tribunal paritaire des baux ruraux, they seek annulment of the assignment. The tribunal rules in their favour at first instance.

David and his father appeal. The Court of Appeal of Rennes, in 1994, rules in their favour: according to it, Article L. 411-35 of the Rural Code (which governs the assignment of leases) does not require prior authorisation from the structures control authority. It considers that David, with his qualifications, provides all the guarantees. The owners appeal to the Court of Cassation.

The Court of Cassation quashes the appeal judgment on 3 April 1996. It reminds that the beneficiary of an assignment of an agricultural lease must have requested, before the projected date of assignment, the prior authorisation provided for by Article L. 331-3 of the Rural Code when such authorisation is required. Moreover, the Court of Appeal had not verified whether David met the conditions of professional capacity and experience set by decree (professional capacity, minimum area, etc.). The decision is referred to another Court of Appeal.

The reasoning of the court — dissected

The Court of Cassation relies on two fundamental texts: Article L. 331-3 of the Rural Code (which subjects any installation, extension or assignment of an agricultural holding exceeding a certain threshold to prior authorisation) and Article L. 411-35 of the same code (which authorises the assignment of the lease to the spouse or descendant participating in the farming).

The reasoning is clear: an assignment of an agricultural lease is not a simple transfer of contract. It modifies the structure of the holding, which may have an impact on the local land market. This is why the legislator introduced a prior control, entrusted to the departmental commission for agricultural orientation (CDOA). The aim? To verify that the successor has the necessary skills and that the operation does not threaten the economic balance of neighbouring holdings.

In this case, the Court of Appeal made two errors: first, it held that prior authorisation was not necessary, which is contrary to the law. Secondly, it did not verify whether David met the capacity conditions set by the decree of 4 July 1989 (requiring an agricultural diploma at level IV or 5 years of professional experience). However, the mere fact of having a CAP and being "best apprentice" is not enough: a diploma at Bac professional level or equivalent is required, or proof of a minimum period of activity.

The decision confirms a constant line of case law: the structures control applies to lease assignments, and the beneficiary must prove that he requested authorisation before the date of assignment. This is not a mere formality: without this authorisation, the assignment can be annulled, and the lease resumes its original course.

What this changes for you — concretely

For a landlord owner, this decision is a protection. If your tenant wants to assign the lease to a descendant, you can require him to prove prior authorisation from the structures control authority. Failing that, you can oppose the assignment. For example, in Changé, an owner of 15 hectares leased to a farmer can require that the son, even if he has a BTS in agriculture, submit an application to the CDOA before the date of assignment. If the application is late, the assignment is void.

For the tenant (lessee), the mistake would be to believe that transmission to a descendant is an absolute right. You must anticipate: the request for authorisation must be made at least 2 to 3 months before the projected assignment, because the processing can take time. And if the descendant does not have the right diploma or the required experience, authorisation may be refused. In the case, David only had a CAP, which is insufficient.

For the beneficiary (the descendant), the lesson is clear: before accepting the assignment, check your eligibility with the chamber of agriculture. If you do not meet the conditions, you can still request a derogation, but it is complex. For example, a 25-year-old without an agricultural diploma but with 3 years of experience on the parental farm may sometimes obtain authorisation, but subject to conditions.

In terms of deadlines and costs: an authorisation request costs about €50 to €100 in filing fees. The processing takes on average 3 months. If you do not obtain it, the assignment is impossible. And if you proceed regardless, the owner can take the matter to court to have the assignment annulled and claim damages (often equivalent to 6 months' rent).

Four tips to avoid this type of dispute

• Anticipate the request for authorisation: as soon as the assignment project is considered, the beneficiary must submit an application to the CDOA (departmental commission for agricultural orientation) at least 3 months before the date of assignment. Do not rely on an oral agreement from the owner.
• Check the capacity conditions: the beneficiary must prove an agricultural diploma at Bac level (or equivalent) or a minimum of 5 years of professional experience. If not, he can take an accelerated training course or request a derogation.
• Draw up a clear written document: the assignment of lease must be recorded in a written document (assignment contract) and notified to the owner by registered letter with acknowledgement of receipt. Indicate the date of assignment and attach a copy of the administrative authorisation.
• Consult a lawyer specialised in rural law: a professional can help you prepare the authorisation request file and verify the compliance of the assignment. In Mamers or Changé, Maître Zakine can assist you.

Further information: related case law and developments

This 1996 decision is part of a consistent line of case law. Already, in a judgment of 12 December 1990 (No. 89-13.402), the Court of Cassation had held that the lack of prior authorisation rendered the assignment void. More recently, a judgment of 19 March 2020 (No. 18-22.456) reminded that the structures control applies even in the case of an assignment to a descendant, and that the owner can oppose the assignment if the conditions are not met.

The trend is towards strengthening control: the legislator reformed the structures control in 2014 (Future for Agriculture Act), expanding the cases requiring prior authorisation and simplifying the capacity criteria. Today, a young farmer must prove a diploma at level IV (Bac pro) or 5 years of experience, and complete a 21-hour training course (Personalised Professionalisation Plan).

For the future, the question arises of the transmission of leases in a context of ageing farmers. The courts are careful not to block transmission, but they ensure that the successor has the necessary skills. One piece of advice: never neglect the administrative phase.

Summary and next steps

FAQ:

• Can I assign my lease to my son without authorisation? No, if the assignment exceeds the control threshold (generally 1 hectare). You must obtain prior authorisation from the CDOA.
• What should I do if the owner refuses the assignment? You can take the matter to the tribunal paritaire des baux ruraux within 2 months of the refusal. But without administrative authorisation, your chances are slim.
• What diploma is required? A diploma at Bac level (Bac pro agricole, BTSA) or 5 years of professional experience. The CAP is not sufficient.
• What are the deadlines for requesting authorisation? Ideally 3 months before the date of assignment. Processing takes about 2 to 3 months.
• Can I challenge a refusal decision? Yes, before the administrative court within 2 months of notification of the refusal.

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