Winegrowing    Rural tenancies   

How to calculate the amount of rent for vineyards?

Published at May 17, 2022 by Bernard Charlotin
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How to calculate the amount of rent for vineyards?

Calculating vines rent is complex. We present you with 5 simple steps to follow in order to set the rent for your rural lease.

The statute of tenancy is regulated and most of the important provisions are of public order, which means that it is not possible to derogate from them even if the lessor and the farmer are in agreement. This is particularly the case for the rent (fermage), which is regulated in a complex way.
Fortunately, ma-propriete.fr gives you the keys to setting a rent that complies with the rules.

Contents
1. How do you calculate the rent?
2. Consult the arrêté départemental des fermages (in French only)
3. Defining the category of vineyard parcels
4. Define a hectolitre rent
5. Determining the apportionment of property taxes
6. Apply the price per hectolitre each year

How to calculate the amount of rent?

To determine the price of a vineyard lease, you need to follow 5 steps:

  1. Consult the arrêté départemental des fermages
  2. Define the category of vineyard plots
  3. Define a rent in hectolitres
  4. Define the share of the land tax distribution
  5. Apply the price per hectolitre each year

The regulations governing rural leases are very strict and the law does not allow any derogation from the basic rules. This is particularly the case for the setting of rents.

1. Consult the arrêté départemental des fermages

The setting of the rent is governed by a prefectoral decree which sets a range of hectolitres per hectare (between a minimum and a maximum) by category of plot, distinguishing between bare land (planted by the farmer) and planted plots (planted by the owner).

This departmental decree can be consulted on the DDTM website of your department or at the Chamber of Agriculture.

See for example the departmental decrees:

  • of the Gironde (33)
  • of the Hérault (34)
  • du Jura (39)
  • of the Loire Atlantique (44)
  • de la Marne (51)
  • of the Saône et Loire (71) and updated on 08.11.2021

2. Define the category of vineyard plots

With regard to the criteria laid down by the prefectural decree, you must therefore categorise each parcel of vines according to its specific characteristics: planting density, age of the vines, quality of the terroir, etc.

A scale is generally proposed for each appellation. If a parcel can benefit from several different appellations, it is up to the owner and the tenant to choose the appellation they wish.

If this is too difficult or a source of dispute between the farmer and the lessor, you can use a land expert to define the category of each rented parcel.

A scale is also proposed to fix the rent for winegrowing buildings.

It should be noted that if the rental of the dwelling house is inseparable from the rental of the land, it is the status of rural leases that applies to determine the amount of rent for the dwelling and not the regulations for property rentals. The prefectoral decree also specifies the methods for calculating the rent for the dwelling house.

The farm lease therefore very often applies to the entire vineyard: the vines, the buildings and the dwelling house. However, if the house can be dissociated from the rest of the property, then the status of rural leases may not apply to calculate the rent due by the lessee.

3. Define a rent in hectolitre

Unlike traditional agricultural plots where the rent is defined in euros per hectare, the classification of vineyard plots carried out in the previous step will make it possible to define a scale in hectolitres per hectare differentiated by appellation.

Please note that if the rent defined in a lease exceeds the departmental scale by more than 10%, the lessee or lessor may apply to the Tribunal Paritaire des Baux Ruraux (rural land tenancy court) during the third year of the lease to request a judicial review of the rent.

Good to know: In many regions, the rents charged are frequently higher than the maximums and the number of judicial review proceedings before the Tribunal Paritaire des Baux Ruraux remains relatively low.

4. Define the share of the property tax distributionhouse money tax

The landlord may ask his tenant to reimburse him for a share of the property taxes of the leased property.

In the absence of a different agreement between the parties, the rural code provides for a reimbursement of 20% of the communal and inter-communal tax, 50% of the Chamber of Agriculture fees and 8% of the management fees.

It should be noted that it is forbidden to provide for a full reimbursement of property taxes by the farmer, and that property tax rebates for young farmers must be deducted in full from the farmer's rent.

5. Apply the price per hectolitre each year

The rent is then calculated each year according to the scale defined by a departmental decree fixing the price of wine-growing rents.

This scale is defined on the basis of the weighted average prices for each appellation over one or more years.

See for example the departmental decree:

  • of the Gironde (33)
  • of the Hérault (34)
  • of the Jura (39)
  • of the Loire Atlantique (44)
  • de la Marne (51)
  • of the Saône et Loire (71)

FIND OUT MORE : 

  1. The universal character of the rural lease
  2. Farming
  3. Duration and end of the rural lease
  4. Other types of agricultural leases
  5. Transfer, exchange and subletting of the rural lease
  6. The farmer's right of pre-emption
  7. Rural lease and succession
  8. Termination of the lease
  9. Recovering rented farmland for sale
  10. Can rented vines be sold?
  11. How to recover land leased to a farmer?
  12. The hire purchase agreement on agricultural land
  13. 5 steps to calculate the rental amount