It is quite easy to rent out agricultural land these days. You can either do it by posting it online on real estate or agriculture related websites or else by using old school methods like contacting the local newspaper or spreading the word in the area and nearby localities where your land is present. As most of the agricultural land is in village areas, I guess the latter option would be useful. Most villages have land that is not cultivated for reasons of lack of human resources.
You should be very clear about the terms and conditions of the lease. My dad and his brothers have leased our agricultural land and they have made a contract of 40:60 (40% of profit is farmers profit and 60% is the owner, here my dad and his brothers). Here, all the raw materials and other necessities are taken care of by the farmer. So you need to be very careful about this while leasing out the land.
Also, you need to understand that you cannot lease the land for anything else other than agriculture though.
Hi,My grandfather also wants to rent out his agricultural land, so I did my research regarding whether you can put your agriculture land for sale or rent. I found out that laws in our country also restrict leasing rights for agricultural land. Since formal leasing either poses risks or is banned, these laws force farmers to lease their agricultural land in the black market.Rent Agricultural Land: What Do Laws SayUttarakhand, Uttar Pradesh, Telangana, Odisha, Madhya Pradesh, Kerala, Bihar, Karnataka, Jharkhand, and Himachal Pradesh ban leasing. Kerala is the only state with a complete ban on leasing. Other states still have a few exceptions. For example, Madhya Pradesh allows leasing for imprisoned individuals, widows, and disabled persons among others while Karnataka lets seamen and soldiers lease their land.The leasing laws vary from one region to another in Gujarat. While the erstwhile Bombay and Kutch areas let anybody lease, the Saurashtra region bans leasing with a few exceptions.In states that allow renting agricultural land, there are some encumbrances that make formal leasing unappealing.In Telangana, Tamil Nadu, Himachal Pradesh, Andhra Pradesh, Gujarat (all 3 areas), Bihar, and Chhattisgarh, the landlord doesn’t get all their land back when the lease ends. The landlords in Andhra Pradesh can only expect to receive 50% of their land back.Most states, except Uttarakhand, Uttar Pradesh, Madhya Pradesh, and Jharkhand, put a ceiling (generally based on production) on the rent landlords can charge. For instance, Karnataka limits rent to 1/4th of the produce value while Andhra Pradesh limits it to 30% of the produce value. As a result, the landlord doesn’t have an idea what they’ll get when they lease out their land, making the viability of leasing dependent on factors that aren’t in their control.The land leasing market in the formal sector has been severely depressed due to these factors. The Sample Survey Office indicates that 13% of the land is leased in our country based on household surveys. However, the Agri Census data shows just 0.36% of leased land based on land records (formal leasing’s reflection). This discrepancy shows that the lease market isn’t functioning as it should.Even if you are thinking about putting your farm land for sale. All states across the country put restrictions on who can purchase farmland. For example, Himachal Pradesh allows only an “agriculturist from the state” to purchase agricultural land while Maharashtra only allows “agriculturists” to buy such land.I suggest you consult a lawyer before you decide to put your agriculture land for rent or sale.Reach Out to NoBroker’s Legal Experts if You are Planning to Buy a Property and Have Any Queries Regarding the Same!Read more:How to Measure Agricultural Land in India?Who Can Buy Agricultural Land in India?How Much Construction is Allowed on Agricultural Land?Can NRI Buy Agricultural Land in India?I hope now you know about the laws regarding agriculture land for sale and rent.
Hey Pal,Agricultural land for rent is a very simple process in Karnataka. According to the most recent news, the Karnataka government aims to sell land provided on a long-term lease. The federal government is considering selling leased land. All real estate controlled by the government is bought and sold by Karnataka Public Lands Entity Ltd. (KPLC), a fully-owned government corporation that also handles leasing, hiring, and other types of property acquisition.Post Property and land details free of any charge on NoBrokerContact NoBroker Legal Services to get approvals for your agricultural land for rentOne of my friends, Kashish who owns agricultural land in Karnataka was having a discussion about the same. She told me that I want to give my agriculture land on rent. Hence, I assisted her as I helped my granddad to rent his agricultural land in Karnataka.How to rent agricultural land?
You must request approval from the city development authority in order to lease public land.
You must obtain authorization from KPLC in Karnataka.
Mention the type of land you want to lease in the application asking about the land that is available.
Include all relevant documents, such as the project plan, in the application.
Send in the application.
if your application is accepted. The following step will be specified in a letter that you will receive.
You must appear before the Land Allotment Committee.
You'll be questioned by the LAC.
You will receive an offer letter if your application has been accepted.
The payments necessary to lease the land must be made by you.
You will receive a letter of land allotment once all the requirements are completed.
Renting agricultural land is not easy. In West Bengal, my father too has agricultural lands which he wanted to rent but the government did not allow it then. There is a reason for it. India is a self-sufficient country. It has to think for its own and thus at any cost agricultural lands cannot be misused. You must be aware of the fact that once you carry on some industrial work on agricultural land, the land can never produce crops (in most cases). That is why the Tata Nano project could not get established there. But the agriculture land rent is not possible. You just have to take things slowly and legally. You can read my answer to know how that can be done.Seek NoBroker’s legal experts’ advice on property-related matters before proceeding further
How to give agriculture land on rent?
Your foremost job will be to seek permission from the City’s Development Authority and make sure whether you can do it or not. Most states do not allow renting or selling agricultural land so easily hence it is a tough job unless the government’s approval is given.
If I want to give my agriculture land on rent, what things should I include in the agreement?
The rent agreement must be drafted very carefully since it will be the legal document to prove your agricultural land has been rented. Here are some of the points that must be mentioned in the rent agreement
The exact area, boundary and location of the plot
Use the words tenant and landlord specifically and mention their respective rules accordingly
Mention the lease period of the tenant precisely
If you want profit earned from the land, do mention it in the agreement
Mention the facilities that the tenant will enjoy there and if you want him/her to pay some charges, mention them as well
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I have 5 acre agricultural land, I want to rent it.
Kannan
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November 23, 2020
2020-11-23T08:35:44+00:00 2023-06-16T14:57:02+00:00Comment
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