Pacht
Lease
Pacht is a special form of tenancy under which agricultural land or an agricultural enterprise is let. It affords the tenant specific statutory protection and is governed by Book 7 of the Civil Code.
Agricultural tenancy is the contract under which the lessor undertakes to grant the lessee the use of immovable property designated for agricultural purposes in exchange for monetary consideration. Unlike ordinary leases, agricultural tenancies are subject to strict statutory rules governing duration, termination, rights of first refusal and approval of the tenancy agreement.
This regime is relevant because it safeguards the continuity of agricultural businesses. Tenants are protected against arbitrary termination, enabling them to make investments in land and operations without the immediate risk of losing the land.
In practice, agricultural tenancies are common within family businesses and for the leasing of additional parcels. Disputes concerning agricultural tenancies are adjudicated by the Agricultural Tenancy Division of the District Court, which also oversees the reasonableness of the tenancy terms.
“The farmer entered into an agricultural tenancy agreement for the arable land that he had been cultivating for years, so that he could continue to invest in his business.”
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