Head of practice
Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Agricultural land lease agreement
The agreement regulating the paid use of agricultural land is called an agricultural land lease agreement (hereinafter referred to as the OSG agreement). Its conclusion is necessary for many reasons, in particular for the effective use of agricultural land, optimization of budget revenues through the payment of land tax, and regulation of land relations in general. The procedure for developing and signing such an agreement is provided for in the Law of Ukraine “On Land Lease”, taking into account the features specified in Law № 2698-IX.
For which land plots can an agricultural land lease agreement be concluded?
OSG agreements can be concluded for land plots classified under code 01 of the currently valid Classification of Land Purpose Types. Such lands are those intended for:
- growing crops, breeding animals (livestock);
- conducting research in the field of agriculture;
- construction and operation of facilities for commodity production (hangars, farms, etc.);
- conducting personal (subsidiary) peasant farming;
- gardening, horticulture, haymaking, etc.
Important: The intended purpose of the plot is a key factor when concluding a lease agreement in the field of land relations and is indicated directly in the extract from the State Land Cadastre. If you are interested in changing the intended purpose of the land that you previously owned, we recommend that you consult our lawyer.
What is the difference between an agricultural land lease agreement and a regular land lease agreement?
The OSG agreement has a number of specific features, which are expressed in:
- firstly, taking into account the minimum term of the agreement. For lands intended for commodity production, farming or peasant farming, a minimum of 7 years is provided, for lands with perennial plantings (fruit, berry, nut) – 25 years. Finally, for lands on which hydrotechnical melioration is carried out, the minimum lease term cannot be less than 10 full years.
- secondly, establishing a special lease term for lands of state and municipal ownership of 1 year. This provision is a requirement of martial law and is directly enshrined in Law No. 2145-IX or the Model Land Lease Agreement, approved by Resolution of the Cabinet of Ministers № 220.
- thirdly, taking into account the obligation to pay rent for another six months in the event of early termination of the agreement at the initiative of the tenant.
- finally, specifying special conditions regarding methods of land cultivation, preservation of their fertility, etc.
Requirements for the content of an agricultural land lease agreement
Essential conditions
The main requirements for the content are established in the Law of Ukraine “On Land Lease” and provide for the fixing of:
- the object of the agreement (cadastral number of the land plot, location, size);
- the term of the agreements;
- the amount of the rent and payments, the method of its indexation (taking into account the normative monetary assessment or the inflation index);
- the rights and obligations of the parties;
- the conditions for improving the condition of the leased object (separately, a clause on the obligation of the lessor to reimburse capital costs for such improvement);
- other conditions that do not contradict the legislation.
Clause on renewal of the contract
According to Article 126-1 of the Land Code of Ukraine, the OSG contract may contain a condition on its automatic renewal after the expiration of the term. However, such a condition must take into account the following features:
- automatic renewal of the lease term of state and municipal lands in the event that buildings owned by the tenant are located on them;
- the contract is considered renewed for the same term and on the same terms, unless the parties agree otherwise;
- the condition for unhindered renewal is the absence of a statement of refusal by one of the parties.
For information on other features of the renewal of lease agreements for agricultural land plots, we recommend that you consult a lawyer on land issues of our company.
How can the lawyers of “Prikhodko and Partners” be useful?
Lawyers help clients at all stages of concluding contracts, providing legal support, protection of rights and minimization of legal risks. Our specialists allow clients to conclude a profitable and legally competent OSG agreement, while providing the following services:
- consultation. Lawyers will provide a comprehensive legal analysis of the current legislation, the documents provided, help assess the legal situation, as well as potential advantages and disadvantages;
- preparation of a draft agreement. Lawyers will draw up a draft version of the agreement, taking into account the specifics of the client’s request and the norms of the law as much as possible, and will help formulate terms that are favorable for the client;
- support for concluding an agreement. Lawyers will represent the client’s interests in negotiations with the other party, provide legal control over the process of agreeing on terms, make the necessary changes and additions;
- support for state registration of the agreement. Finally, lawyers will help in preparing a package of documents required for submission to the state registration authority, and will represent the client’s interests directly during the procedure (by power of attorney).
In case of disputes related to the conclusion of a lease agreement for agricultural land, our lawyers will provide you with qualified legal assistance. To find out the cost of the services of a lawyer on land issues, fill out the form below.
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