Is it complicated in France to rent one of my fields to neighbours for their horses?

Reader question: A neighbour wants to rent two parcels of land on my estate for her horses to roam/graze. I never use them so would be happy to, but am concerned about any legal consequences to an informal contract. Is there anything I should consider? 

A rental contract for an agricultural plot in France will often create what is known as a bail rural, which provides a series of powerful rights for the renter. 

Farm lease contracts between a landowner and tenant create a statut du fermage (agricultural tenancy status). 

This can include rent controls – including a maximum rental fee and limits on increases – rights to renew the lease, and limits on landowners ending the contract. 

The rule applies automatically when a contract fulfils the following criteria: renting of a parcel of land for agricultural purposes (including rearing animals) at a fee.

Even if the contract is informal and between friendly neighbours, it can inadvertently lead to this legally-restrictive situation. 

A 2005 update to Article L. 311-1 of France’s rural code confirms that fields used for rearing horses counts as an ‘agricultural purpose’, therefore making such an agreement likely to fall under a bail rural. 

Other considerations include insurance and liability aspects, as well as planning if the friend puts up a shelter, and any business and accounting issues if you are paid for this, which can all add complexity and make a simple agreement more difficult.

Alternatives include offering the plots for free (prêt à usage), however any exchange of money or goods (even those produced from the rented land itself) or payment for land may immediately turn the contract into a bail rural.

A contrat de vente d'herbe is a short-term lease that allows landowners to rent out plots for the purpose of grazing and keeping animals on. 

It must be in writing, be for less than one year, and have a gap of several years before the plot can be rented again to the same tenant.

Additionally, all land management must be undertaken by the owner and not the renter.

If these rules are not followed, the contract may be reclassified as a bail rural, granting the tenant additional rights. 

A bail de petites parcelles allows for small plots of land to be rented out, provided they are not essential to the landowner’s estate management.

It can be made merely orally, but in writing will provide greater clarity for both parties. The exact size limit is set out by prefectoral decree and varies across France, but this may be an alternative. 

Ultimately, it can be a complex area and consulting a local lawyer is advisable.