Term of leasing agricultural land for projects for businesses

Terms of leasing agricultural land for projects for businesses are specifically regulated in Land Law 2024. Understanding the regulations on agricultural land lease terms helps businesses be proactive in their investment plans and effective land use. This article by Long Phan Consulting Company will analyze in detail the legal regulations related to the term of agricultural land lease for businesses implementing projects.

Authority to lease agricultural land for projects for businesses

According to Clause 1, Article 123 of the Land Law 2024, the authority to lease agricultural land to implement investment projects for businesses is clearly decentralized. Specifically, the Provincial People’s Committee has the authority to decide to lease agricultural land to businesses. Note: Do not authorize another agency to perform.

This regulation aims to ensure effective management and use of agricultural land, while creating favorable conditions for businesses to access land resources for project development. Determining the correct authority to lease agricultural land helps businesses carry out legal procedures quickly and in accordance with regulations.

>>> See more: Enterprises Renting Land for Headquarters: Conditions and Procedures?

Term of leasing agricultural land for projects for businesses

Pursuant to Point c, Clause 1, Article 172 of the Land Law 2024, regulations on agricultural land lease term in this case are as follows:

• The agricultural land lease term for an enterprise implementing an investment project is considered and decided based on the project’s operating term or according to the enterprise’s land lease application. However, do not exceed 50 years.
• For projects with an operating term of over 50 years according to the provisions of the Law on Investment, the land allocation or land lease term can be extended according to the term of the project but up to a maximum of 70 years.
• At the end of the term, if the enterprise wishes to continue using agricultural land, the State will consider extending the land use but not beyond the originally prescribed term.
• In cases where an investment project is not required, the land use term is considered based on the application for land allocation or land lease but must not exceed 50 years.
• The land allocation or land lease term is calculated from the date the competent state agency issues the land allocation or land lease decision.

Enterprises need to pay attention to the land lease term to be proactive in land use planning and carry out extension procedures when necessary.

Conditions for adjusting land use term for investment projects using land

During project implementation, businesses may need to adjust the land use term before the term expires. However, this adjustment must meet the conditions specified in Article 175 of the Land Law 2024, including:

• Consistent with district-level land use planning;
• There is a written request to adjust the land use term of the investment project;
• Completed financial obligations regarding land to the State according to the provisions of law;
• Not subject to land recovery specified in Article 81 of the Land Law 2024;
• There is a document from a competent authority on adjusting the investment project according to the provisions of law that changes the operating term of the investment project;
• Meets environmental conditions according to the provisions of law on environmental protection.

Note: The project’s land use term after adjustment must not exceed the initial term of the land use investment project specified in Point c, Clause 1, Article 172 of the Land Law 2024.

>>> See more: Land Lease Application Form for Standard Project Implementation in 2025.

Consulting services for leasing agricultural land for projects for businesses from Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting services on issues related to leasing agricultural land to implement projects for businesses. Our services include:

• Consulting on authority to lease agricultural land.
• Consulting on the maximum agricultural land lease term for each type of project.
• Drafting agricultural land lease applications and related documents.
• Representing customers in working with competent state agencies during the process of implementing land lease procedures.
• Consulting on conditions and procedures for adjusting agricultural land use terms.
• Support in resolving disputes arising during the process of leasing and using agricultural land.
• Consulting on financial obligations related to agricultural land lease.
• Assess legal risks and provide effective prevention solutions.
• Update the latest legal regulations on agricultural land and investment.
• Consulting on other issues related to business operations on leased agricultural land.

With the companionship of Long Phan Consulting Company, businesses can feel secure in implementing projects on agricultural land legally, effectively and in accordance with regulations, thereby optimizing investment resources and minimizing legal risks.

Frequently asked questions about the term of leasing agricultural land for projects for businesses

Below are frequently asked questions that customers can refer to:

What steps do businesses need to take when the agricultural land lease period is about to end and there is still a need to continue using it?

When the agricultural land lease period is about to expire and the business still needs to continue using it, the State will consider extending the land use period but not exceeding the originally prescribed term. Enterprises need to proactively carry out extension procedures according to regulations.

If there is no need to prepare investment project documents, how is the period of use of leased agricultural land considered?

In situations where it is not necessary to prepare investment project documents, the land use period is considered based on the written request for land allocation or land lease but must not exceed 50 years.

When is the beginning of the agricultural land lease term considered?

The agricultural land lease term is calculated from the date the competent state agency issues the land lease decision.

What requirements need to be met to be able to adjust the land use term for an ongoing investment project?

To adjust the land use term for an ongoing investment project, it is necessary to meet the requirements such as being consistent with the district-level land use plan, having a written request for adjustment, completing financial obligations on land, not being subject to land recovery, having a written approval to adjust the investment project that changes the operating term, and meeting environmental regulations.

What is the maximum limit of land use time after adjustment?

The land use period of the project after being adjusted must not exceed the initial term of the prescribed land use investment project.

Which agency has the authority to decide on agricultural land lease to implement enterprise projects?

The Provincial People’s Committee is the agency with the authority to decide on leasing agricultural land to implement enterprise projects.

What factors can affect a business’s decision to extend the lease term of agricultural land?

The extension of an enterprise’s agricultural land lease term may be affected by factors such as the State’s land use needs, the enterprise’s compliance with land laws, land use efficiency and land use planning at the time of extension.

Conclude

Mastering the regulations on agricultural land lease terms for businesses implementing investment projects is extremely important to ensure the legality and effectiveness of the project. Long Phan Consulting Company has a team of experts who deeply understand land law, ready to provide comprehensive consulting services and support customers in all aspects related to agricultural land lease. For detailed and in-depth advice, please contact us via the hotline: 0906735386.