The issue of access to land is a pressing concern for young farmers. In the government’s draft law on the orientation for agricultural sovereignty and generational renewal in agriculture, which is set to begin examination on May 14th in the National Assembly, land access is not at the heart of the debates. However, an article in the initial version of the text introduces “agricultural land investment groups”, or GFAIs. These groups are intended to raise funds from private investors to purchase land and lease it to new farmers. Critics have raised concerns about the financialization of agriculture and the potential increase in land prices that this land tool could represent.
Despite the government’s support for the measure, a number of observers have raised awareness about the risks associated with the creation of GFAIs. This led to the adoption of amendments to delete Article 12 during the passage of the law in committee at the National Assembly on May 4th, against the government’s advice. The amendments were passed by a vote of 24 to 16. Due to concerns expressed by a coalition of opposition members and some Macronists, the general rapporteur, Deputy Eric Girardin (Renaissance) from Marne, had planned to propose a rewrite of the article to include safeguards.
The concept of GFAIs, which is now being debated in the context of the agricultural law as Article 12, was initially introduced in a bill endorsing their creation that was passed in first reading by the Senate at the end of October 2023 with the support of Agriculture Minister Marc Fesneau. The rapporteur of the bill is expected to propose a revised version of the land holding mechanism with the government’s support for consideration in the plenary session. This new form of land holding entity is reminiscent of agricultural land groups (GFA) that emerged in the 1970s to facilitate the transfer of a farm within a family by separating ownership from management. The farm is leased through a contract, with the possibility for the operator to gradually buy back shares from family members. There are approximately 10,000 GFAs in existence, with individual shareholders.
As the debate on the creation of GFAIs continues, it is important to consider the potential implications for the agricultural sector and the future of farming in France. The concerns raised about the financialization of agriculture and rising land prices highlight the need for thoughtful and careful consideration of any new mechanisms introduced to address the issue of access to land for young farmers. The decision to remove Article 12 from the draft law demonstrates the importance of balancing investment opportunities for new farmers with the protection of agricultural land and the sustainability of the sector.
