Issue link: https://maltatoday.uberflip.com/i/1481355
13 NEWS maltatoday | SUNDAY • 9 OCTOBER 2022 ing land offered for sale so that this is later allocated to active farmers. Borg says this would allow the State to pass agricultural land to a genuine and active farm- er and also give the option of guiding possible new students into the field – literally. "Un- til then, Għaqda Bdiewa Attivi will keep monitoring the pro- cess which binds together land prices and the proper definition of an 'active farmer' with insur- ance of agricultural land which is only worked for agricultural purposes." What changed for farmers Years ago, a law to protect farmers technically prevent- ed owners from evicting the farmer unless there was proof that the owner needs that land, justifiably. Leases could not have their rates raised, in a bid to prevent owners from indis- criminately raising the price to force the eviction of the farmer. This law also gave the right the farmer to pass the lease on to his son or daughter. All changed in November 2020, when a Constitutional Court judgement declared that the law breached owners' rights to the peaceful enjoyment of their property. This led to agricultural leases being negotiated according to current market rates, which are dependent on the demand for the land for recreational pur- poses. This resulted in market prices that were not within the budget of any farmer. That is why the reform pro- poses a fair rent price after con- sidering the land's value. This would depend on several fac- tors, such as adequate access to water, the road, any buildings on the property and more. The same authority will ap- point experts in different sec- tors, representatives of com- petent authorities and other interested stakeholders, to its board, to ensure rents do not exceed 1.5% of the land's free value in the open market per year – a measure that would ensure the farmer's peace of mind while leasing rates stay as stable for them as possible. Explained: the 2020 judge- ment The case concerned a 5,000sq.m parcel of land and farmhouse, in Żabbar, acquired in 1982 by J & C Properties, along with another four prop- erties, for Lm26,000 (€51,000) back then. The land was leased to Nazzareno Pulis, at an annu- al rent of €58.23, remaining so leased until today. The owners filed a claim that their rights were being breached because they were not being afforded adequate compensation. The first court upheld that claim, awarding the company €100,000 in damages. The State Advocate appealed but the Constitutional Court rejected the arguments put forward, save for that con- cerning the awarded damages, effectively slashing the sum to €22,000. While such restrictions on ownership rights had been in- tended for "social purposes", the Court asked whether the owner was receiving adequate and proportionate compensa- tion. Under the current regime, the owner could only claim back his land for farming pur- poses or to develop the site, save for other instances where shortcomings were proved on the part of the lessee. This meant that if the owner did not intend to farm the land or lacked the capital to devel- op it, he could not claim his property back unless the lessee agreed in writing to the termi- nation of the lease. The Court, therefore, ruled that the lessees could no longer avail themselves of the law to renew the lease. Whether any eviction follows, will fall within the competence of the ordinary courts. Influx of 'recreational' land- owners A new reality has dominated the market as of late. You sim- ply search for fields on Face- book Marketplace and many fields come up being sold at in- flated prices, usually targeting buyers who want private fields for recreational purposes. The demand has increased, and owners are seeing this as an opportunity to put more mon- ey in their pockets. This could only be one of many reasons why farmers are being evicted from the lands they cultivate. Nonetheless, there are cur- rently around 7,500 farmers around Malta, with most not owning their own land. For this reason, the reform is proposing that together with existing tax measures, new in- centives are created for agricul- tural land tenure and acquisi- tion. The white paper is propos- ing exemptions from inher- itance tax if the land is leased to the farmer, fiscal incentives for landowners who lease their land to farmers and tax on ag- ricultural land that requires to be cultivated and which is not being used for agricultural pur- poses. mcalleja@mediatoday.com.mt PHOTOS: IAN FOKS "I met MCAST students who would love to enrol in an agricultural course, but they fear that once they raduate and open their own enterprise, they would not find fields to till"