The purchase of shares in a Groupement Foncier Agricole (GFA) is a very interesting way of investing in agricultural land. It allows you to reduce the purchase price, reduce the level of risk, benefit from tax advantages and simplify management. A hectare of agricultural land costs an average of €6,000/ha in France, with significant differences between regions. You will find a presentation of prices by region, department and small area in the Land Prices section of the www.ma-propriete.fr blog. The purchase of agricultural land for investment purposes can represent a very significant investment depending on the surface area of the land to be taken over. Buying shares in a Groupement Foncier Agricole allows you to make this investment from just a few thousand euros and makes this investment accessible to the greatest number of people. Buying shares in a GFA also reduces the risk. The group will usually hold land leased to several different farmers, which will reduce the risk. The rental risk will be shared between different farmers. And also the capital risk because the variety of the GFA's land investments will reduce the risk of a loss of land value. When the land of the Groupement Foncier Agricole is leased under a long-term lease (minimum term of 18 years), you can then claim deductions on the value of your shares in the context of an inheritance, a gift or for the purposes of the Impôt sur la Fortune Immobilière. GFA shares are in fact exempt up to 75% of their value when they do not exceed 101,897 euros (article 793 paragraph 2 of the general tax code). Above this amount, the exemption will be 50% of their value. Renting agricultural land requires calculating the amount of the rent each year, monitoring payments, calculating the proportion of property taxes, etc., and managing all the reporting aspects. The particularities of rural leases make the exercise difficult for a neophyte. The use of a GFA allows the partners to entrust the manager with these tasks (who can delegate them to a professional if he wishes). On www.ma-propriete-fonciere.fr you will find shares in Groupements Fonciers Agricoles for sale throughout France.
