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Agricoltural pre-emption: what it is and what you need to know regarding luxury estates in Tuscany.

Agricoltural pre-emption is a legal right that allows certain persons, such as direct farmers (coltivatori diretti) and tenants, to have priority in the purchase of agricultural land offered for sale. This right applies when the owner decides to sell the land and must first offer the opportunity to purchase to those having the right of first refusal, generally on equivalent conditions to those offered to other buyers.

Agricoltural pre-emption is a fundamental legal concept in the Italian agricultural sector, particularly relevant for luxury estates in Tuscany. This article will explore the definition of agricoltural pre-emption, the associated rights and obligations, and the specific implications for investors.

 

Why is it important to know the legal framework of agricoltural pre-emption?

 

Understanding agricoltural pre-emption is crucial for those wishing to invest or sell agricultural land in Tuscany, especially in the luxury estate market. Current regulations offer protections to both direct farmers and landowners, but also require careful planning and strategic sales management.
Knowing the rights and obligations associated with the right of first refusal on agricultural land not only facilitates real estate transactions but also contributes to the economic sustainability of agriculture in the historic region of Tuscany.

To simplify, we can say that there are two types of pre-emption:

  • Tenant pre-emption: granted to tenant farmers who cultivate the land directly.
  • Neighbour pre-emption: granted to direct farmers of land adjoining the land being sold, provided there are no tenants on that land.

The advantages of agricoltural pre-emption for luxury estates in Tuscany.

Agricoltural pre-emption is a central aspect in the management of agricultural estates in Tuscany, especially luxury ones. This legal right offers significant benefits to both direct farmers and tenant farmers, helping to stabilise and enhance the agricultural market.
The regulation contributes to investment protection, economic sustainability, market stability and access to property for direct farmers, favouring not only the development of farms but also the preservation of the region's cultural heritage and landscape. For investors and owners of agricultural land, understanding and respecting the pre-emption regulations is imperative to ensure clear and fruitful transactions in the unique context of Tuscan estates.
But let's talk about advantages in more detail:

Protection of agricultural investments

One of the main advantages of agricoltural pre-emption is the protection of agricultural investments. In practice, when an owner decides to sell a piece of land, tenant farmers and direct farmers have priority right in the first phase of the sale. This condition ensures that those who have already invested time and resources in the care of the land can continue to manage it.
From this point of view, therefore, pre-emption allows for a more stable and continuous management of the land, which is essential for long-term planning of agricultural activities, while maintaining and improving the value of the land.
There are situations in which the right of first refusal does not apply:
Forced sales or expropriations.
Land intended for non-agricultural use according to the zoning plan, i.e. if a building is appurtenant to the land.
Land exchanges: an area can be acquired with a view to future construction.


Economic sustainability

Agricultural pre-emption promotes the economic sustainability of agricultural estates, as it encourages purchase by those already working the land. This approach contributes to greater economic and production efficiency by improving production structures.
The legislation aims to bring together the landowner and the land worker, facilitating investment in infrastructure and agricultural technology, with direct management by those who know the land well, in order to implement more profitable and sustainable farming practices.


Agricultural market stability

The right of first refusal helps to stabilise the agricultural market. The surety that directs farmers can buy land when it is put up for sale reduces uncertainty in the market.
The protection offered by pre-emption can help keep farmland prices more stable, as it limits speculation by outside buyers.
This provides a more stable market projection, which gives confidence to investors, who are more likely to commit to a safe and reliable economic environment.


Promoting access to property

Agricultural pre-emption facilitates access to property for direct farmers and tenant farmers, guaranteeing them the possibility of becoming owners of the land they work on.
In addition to favouring purchase by those who already work the land, local farming communities are strengthened, and Tuscany's cultural and landscape heritage is preserved, allowing young farmers to start their own business without having to face competition from foreign investors.

 

Incentives for sustainable agricultural practices

The presence of pre-emption rights encourages sustainable farming practices. Direct farmers are incentivised to manage land responsibly, knowing that they have priority in purchasing, without risking losing their land to buyers not interested in conservation.

Legislation concerning agricoltural pre-emption.

Agricoltural pre-emption is a right that allows specific persons to be preferred to other buyers when agricultural land is put up for sale. In Italy, this right is governed mainly by Law No. 590 of 1965 and Law No. 817 of 1971, which establish the conditions for its exercise. The legislation sets forth the criteria for exercising the right of pre-emption and defines the requirements for accessing it:

  • The applicant must be a direct farmer with a valid contract (whether lease or sharecropping).
  • The land must have an agricultural purpose.
  • The request for pre-emption must be exercised within 30 days after notification of the proposed sale.


To assess the validity of an agricultural contract and to verify whether a person can be considered a direct farmer, it is essential to consult a lawyer specialised in agricoltural law. The professional will be able to analyse the available documentation and provide personalised advice, taking into account the related specific needs.


Requirements for exercising pre-emption

To exercise the right of agricoltural pre-emption, the applicant must meet certain requirements:
Direct farmer: must have been farming for at least two years.
Limited area: the total area of land owned must not exceed three times the working capacity of one's family.
Notification by the owner: the owner must notify the intention to sell via registered mail.

Agricultural estates in Tuscany, often characterised by renowned wine production, may be subject to these regulations. Investors interested in purchasing agricultural land should be aware of a number of implications.
Investors should consider the possibility of tenants or neighbours exercising their right of first refusal, limiting their purchase options, while respecting sales planning, so as not to generate legal disputes. The rights and obligations of the parties involved must be clear and detailed in the contracts so that the purchase procedure is not questionable and thus subject to risk. For example, failure to notify the right of first refusal may lead to legal disputes and the possibility of the direct farmer redeeming the land from the original purchaser.

Need for transparency and information: who to turn to in order to know the regulations governing agricultural pre-emption.

In order to avoid unpleasant surprises, it is essential that the seller fully and transparently informs the buyer about the existence of any pre-emption rights and who owns them. This allows the buyer to carefully evaluate the investment and make an informed decision. Real estate agencies also play a crucial role in this process, providing all the necessary information and assisting the customer in the various stages of the negotiation.
The presence of pre-emptive rights can greatly influence purchasing strategies. A buyer might decide to submit a higher bid to outbid the competition of the rightsholders or, on the contrary, to wait until the most favourable conditions for purchase arise. Furthermore, it might be interesting to consider the purchase of contiguous land, where pre-emption rights are not active, in order to ensure greater autonomy in the management of the property.
Despite the complexities of agricoltural pre-emption, there are also opportunities for investors. For example, it is possible to identify land with fewer constraints or to establish partnerships with direct farmers to facilitate purchase and ensure joint management of the property.
Agricultural pre-emption is a complex issue that requires in-depth knowledge of the regulations in force and the dynamics of the agricultural sector, and, for this reason, it is advisable to take advantage of multidisciplinary professional assistance. By turning to specialised lawyers, agronomists, trade associations and notaries, it is possible to obtain a complete view of the situation and make informed decisions.
It is essential that buyers are aware of this legal institution and turn to professionals in the sector for personalised advice to overcome any difficulties and to receive the necessary information to purchase a beautiful property in the heart of Tuscany.
Here are the main professionals involved:


1. Lawyers specialised in agricultural law
Lawyers with solid experience in agricultural law can provide targeted advice on all issues related to pre-emption, from the drafting of contracts to the management of litigation, should the need arise. It is possible to find law firms offering specific services in this area, operating at local and national level.


2. Consultant agronomists
The advice of an agronomist can be valuable in assessing the characteristics of the land involved in pre-emption and the practical implications of this legislation on agricultural management.


3. Trade associations
Trade associations representing farmers' interests can provide up-to-date information on agricultural pre-emption regulations and offer support to their members.


4. Notaries
The notary is the professional responsible for drawing up the deeds relating to the sale of agricultural land. Contacting a notary ensures that all procedures are carried out in compliance with applicable regulations and that the rights of all parties involved are protected.

 

 

We have provided an overview of a topic that remains very complex, and we hope to have offered useful information on how to proceed in this context.
We are interested in this topic because it directly affects our operations, since we deal with the sale of luxury estates, which are an integral part of our business. It is important for us to understand the average price of capital moved in order to assess the effectiveness of our transactions and to move within the complexities of this market.
Since this is a particularly complicated topic, we strongly recommend that you seek the advice of regulatory professionals and specialised real estate agencies to ensure informed decisions.

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