Conditions for leasing agricultural land for non-agricultural projects

Conditions for leasing agricultural land for non-agricultural projects clearly stipulated in Land Law 2024. Enterprises that want to lease agricultural land to carry out non-agricultural projects need to meet specific requirements, from preparing documents to fulfilling financial obligations. This article will analyze in detail the conditions and procedures necessary to lease agricultural land for non-agricultural projects.

Forms of agricultural land lease

Pursuant to Article 120 of the Land Law 2024, the State leases agricultural land in two main forms: land lease with annual payment and land lease with one-time payment for the entire lease period.

The State leases land with a one-time rental fee for the entire lease period in the following cases:

• Using land to implement investment projects in agricultural production, forestry, aquaculture, and salt making;
• Use of land in industrial parks, industrial clusters, high-tech parks, worker accommodation in industrial parks; land used for public purposes with business purposes; Use commercial and service land for tourism and office business activities;
• Use land to build social housing for rent in accordance with the law on housing.

The State leases land with annual land rent collection in the following cases:

• Cases not subject to land lease pay one-time land rent for the entire lease period;
• Cases of renting land with one-time payment of land rent for the entire lease period but requiring annual payment of land rent;
• Public service units choose the form of land lease according to the provisions of Clause 3, Article 30 of the Land Law 2024.

Determining the form of land lease has a direct impact on the financial obligations and business plans of individuals and organizations when wanting to change the use purpose from agricultural land to non-agricultural land.

>>> See more: Conditions for converting agricultural land to production and business land.

Conditions for leasing agricultural land for non-agricultural projects

To lease agricultural land to non-agricultural land to implement an agricultural fee project, the conditions specified in Clause 2, Article 122 of the Land Law 2024 must be met. Specifically, the following conditions include:

• Deposit or other forms of security according to the provisions of investment law;
• Have financial capacity to ensure land use according to the progress of the investment project and other conditions according to relevant laws;
• Do not violate the provisions of land law or violate the provisions of land law but have completely complied with the legally effective decision or judgment of the competent authority at the time of land lease request.

In addition, for agricultural land that is rice cultivation land, special-use forest land, protective forest land, and production forest land, it will be converted to other purposes after a Resolution of the Provincial People’s Council and meets the grounds specified in Article 116 of the Land Law 2024, except in cases where land use to implement projects under the authority of the National Assembly or the Prime Minister approves and decides on the investment policy.

Meeting the above conditions ensures that businesses can lease land from the state for agricultural projects.

>>> See more: Procedures for Changing Land Use Purpose for Project Implementation.

Procedures for leasing agricultural land for non-agricultural projects

Procedures for leasing agricultural land to implement non-agricultural land projects are detailed in Articles 44 and 49 of Decree 102/2024/ND-CP. Specifically includes the following steps:

Step 1: Prepare documents

Documents include: Land lease application (according to Model number 02b issued together with Decree 102/2024/ND-CP).

In addition, depending on the type of project and specific requirements of the competent state agency, additional documents may be needed such as: investment registration certificate, investment policy approval decision (if any), detailed project construction planning, and documents proving financial capacity.

Prepare complete and accurate documents to avoid returns or additional requests, which prolongs the procedure time.

Step 2: Submit application

Land lease applicants submit applications at the One-Stop Department of the Provincial People’s Committee to receive applications and return results of administrative procedures at the provincial, district and commune levels.

Step 3: Receive and evaluate documents

After receiving the dossier, the Land Registration Office will conduct the following appraisal steps:

• Provide information from the land database and make an extract of the cadastral map of the land plot in case the dossier is complete and valid.
• Instruct the applicant to supplement the cadastral measurement of the land plot for land plots in areas where there is no cadastral map according to regulations or to re-do the dossier or supplement the dossier and resubmit it to the agency with land management functions in case the dossier is incomplete or invalid; Review and check documents; field test.

The appraisal results and cadastral map extracts will be transferred to the competent People’s Committee for review and issuance of land lease decisions.

Step 4: Issue a land lease decision and determine financial obligations

• After evaluating the dossier and finding that the conditions are met, the competent People’s Committee will issue a decision to lease the land.
• At the same time, cadastral information of the land plot will be transferred to the tax authority to determine the amount of land rent that the tenant must pay. The tax authority will base on the land price at the time of lease, land area and lease term to calculate and send a notice of land rent payment to the land user.

Step 5: Pay land rent

• Land users pay land rent according to the provisions of law on land rent;
• The tax authority confirms the completion of land rental payment and sends notification of results to the agency with land management functions.

Step 6: Perform land handover.

Consulting services on procedures for leasing agricultural land for non-agricultural projects from Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting services on agricultural land lease procedures to implement non-agricultural land projects. With a team of experienced experts and a deep understanding of land law, we provide customers with the following services:

• Consulting on forms of agricultural land lease and land lease conditions to implement non-agricultural projects.
• Evaluate the legality of the proposed agricultural land plot, including checking land use planning, legal status of the land and other related legal issues.
• Draft and complete land lease application documents.
• Guidelines on the procedures and steps for leasing agricultural land for non-agricultural projects.
• Representing customers to submit and track documents at competent state agencies.
• Consulting and supporting customers in the process of fulfilling financial obligations related to land lease.
• Consulting on other legal issues related to leasing agricultural land to implement non-agricultural projects.

With a commitment to accompany customers throughout the project implementation process, Long Phan Consulting Company always strives to bring optimal solutions, ensuring legality, saving time and costs, contributing to promoting investment efficiency in a sustainable way.

Frequently asked questions

Below are frequently asked questions about conditions for leasing agricultural land for non-agricultural projects that customers may be interested in:

Besides the two forms of land lease with annual payment and one-time payment, does the Land Law 2024 also regulate any other forms of land lease?

The Land Law 2024 stipulates two main forms of agricultural land lease: land lease with annual payment and land lease with one-time payment for the entire lease period.

Besides a deposit, what other security measures can businesses use when leasing land?

Enterprises can use other forms of security according to the provisions of law on investment in addition to escrow measures.

How are financial capacity conditions when leasing agricultural land proven?

Financial capacity to ensure land use according to project progress and other conditions according to relevant legal regulations needs to be proven through financial records as required.

If a business has violated land laws but has corrected them, is it eligible to rent land?

Enterprises that have violated land laws but have completely complied with legally effective decisions and judgments of competent agencies at the time of application submission are still eligible to lease land.

In what legal documents is the agricultural land lease application form regulated?

The land lease application form is specified in Form No. 02b issued with Decree 102/2024/ND-CP.

In addition to the land lease application, is the land lease application required to have an investment registration certificate?

An investment registration certificate may be necessary depending on the type of project and specific requirements of the competent state agency.

In case the land plot does not have a cadastral map, what procedures does the applicant need to follow?

For land plots in areas where there is no cadastral map, the applicant needs to supplement the cadastral measurement of the land plot according to the instructions of the Land Registration Office.

Which agency has the authority to issue decisions to lease agricultural land for non-agricultural projects?

The People’s Committee at the competent level will issue a decision to lease land after the application is assessed for eligibility.

Conclude

Leasing agricultural land for non-agricultural projects requires a deep understanding of legal regulations. Long Phan Consulting Company, with a team of experienced experts, is always ready to accompany and provide optimal solutions for customers. If you have any questions or need detailed advice on agricultural land rental procedures and related issues, please contact us via the hotline: 0906735386 for timely and professional support.