Agricultural Contracts and Rent: Analysis of Ordinance No. 9725 of 2024

The agricultural sector is characterized by a series of specific contracts, including the rental of rural land. Recently, Ordinance No. 9725 of April 10, 2024, issued by the Court of Cassation, addressed the issue of the qualification of grazing contracts and the distinction between agricultural rent and the sale of herbs. In this article, we will analyze the key points of this ordinance and its implications for the parties involved.

The Legal Issue

The Court addressed the issue of qualifying a contract as agricultural rent, establishing that to be considered as such, it must meet certain fundamental requirements. In particular, the ordinance emphasizes that:

  • The duration of the contract must be more than one year.
  • There must be an excessive use compared to mere harvesting of the herbs.
  • The cultivation activity must stem from a specific agreement between the parties and not from unilateral initiatives.
Generally. For the qualification of a contract as agricultural rent and not as the sale of herbs (so-called grazing), it is necessary for the essential elements of the contractual type, namely the duration exceeding one year and the excessive use beyond mere harvesting of the herbs, to be expressions of a negotiated activity and that, therefore, the cultivation activity exceeding that of mere harvesting of the herbs constitutes the result of a specific agreement between the parties and not of a unilateral initiative.

This maxim highlights the importance of the negotiating intent between the parties, which must be explicit and well-defined. The Court, also referencing norms such as Article 56 of Law No. 3 of May 1982, clarified that mere harvesting of herbs cannot be considered agricultural rent unless supported by an agreement that provides for a broader and more structured use.

Practical Implications

The repercussions of this ordinance are significant for operators in the agricultural sector. In particular, rental contracts must be drafted with special attention to ensure they meet the requirements established by the Court. This implies:

  • A careful definition of the contractual duration, ensuring it exceeds one year.
  • A clear specification of the permitted activities, which must go beyond mere harvesting.
  • Accurate documentation of the agreements between the parties, to highlight the negotiated agreement.

In the absence of such requirements, there is a risk of incorrect qualification of the contract, leading to legal issues and potential disputes.

Conclusions

Ordinance No. 9725 of 2024 represents an important guide for the correct drafting and management of agricultural contracts. Knowing the essential requirements for their validity is not only a competitive advantage but a necessity to avoid disputes and ensure the stability of commercial relationships in the agricultural sector. Farmers and landowners must therefore pay the utmost attention to specific regulations and jurisprudential interpretations to effectively manage their contracts.

Bianucci Law Firm