We will begin our review under this title by interpreting the amendments made in the law.
As is well known, the “Law on Amendments to the Soil Protection and Land Use Law” was passed by the Turkish Grand National Assembly and published in the Official Gazette on May 15, 2014, coming into force. Under this law, the principles regarding the distribution of inherited lands have been redefined.
So, what are these changes? Firstly, the terms “Minimum Agricultural Land Size” and “Sufficient Income Agricultural Land Size” have been redefined with the amendment. Accordingly:
According to the 5403 Soil Protection and Land Use Law and its implementing regulations, for the inheritance of agricultural lands, full ownership transfer is required for the agricultural land subject to inheritance and sufficient income agricultural lands. With the addition to Article 8/A of the relevant law, it has been explicitly stated that agricultural lands cannot be subdivided below the determined sizes in the list annexed to this Law. Furthermore, an important consideration is that agricultural lands with economic integrity may be assessed together, and non-integrated parts may be sold with the Ministry’s permission.
According to the law, the Ministry of Food, Agriculture, and Livestock has determined the minimum agricultural land size, considering the social, economic, ecological, and technical characteristics of the regions. Agricultural lands that have reached the minimum size are considered indivisible. It has been decided that agricultural lands cannot be subdivided or fragmented below the determined sizes by the Ministry. If inheritance agricultural land and sufficient income agricultural lands are involved, the transfer of ownership is essential, and the transfer must be completed within one year from the opening of the inheritance if the heirs reach an agreement.
As per the amendments in the law, heirs who pass away after May 15, 2014, and initiate the transfer process within one year will be notified by the Ministry to complete the transfer within three months. The notification offers four different agreement methods for agricultural lands subject to inheritance:
In Case of Disagreement Among Heirs:
If the heirs cannot reach an agreement, each heir has the right to file a lawsuit at the competent Civil Court. After the trial, the judge may decide to transfer the agricultural land to the qualified heir based on agricultural income value, prioritizing the heir who relies on these lands for their livelihood. If no qualified heir exists, the judge may transfer the land to the highest bidder among the heirs.
If there are multiple qualified heirs who also own non-inherited agricultural lands, the judge can transfer agricultural land to these heirs without considering the sufficient income size, to help them achieve sufficient income size or contribute to the economic operation of the lands.
If no heir requests the sufficient income agricultural land, the judge may decide to sell the land, and the proceeds will be distributed among the heirs according to their shares.
If the sufficient income agricultural land can be divided into several sections, the judge may transfer the ownership of each section to the heirs.
Failure to Complete the Transfer Within One Year:
If the inheritance agricultural land and sufficient income agricultural lands are not transferred within one year due to a failure to reach an agreement among heirs and no lawsuit is filed in court, the Ministry of Food, Agriculture, and Livestock will intervene.
The process works as follows: If the public or financial institutions learn that the sufficient income agricultural land has not been transferred within the prescribed time, they are required to inform the Ministry. Upon notification, the Ministry will grant three months for the heirs to complete the transfer. If the transfer is not completed within this period, the Ministry will transfer the land to the qualified heir or the highest bidder.
If no request is made by the heirs, the Ministry may file a lawsuit to sell the inherited land to a third party.
Transfer Procedures:
The amendments to the Soil Protection and Land Use Law have introduced new provisions, including the right of first refusal for family members in case one of the family members sells their share of the land to a third party. Similarly, neighbors of the agricultural land also have the right of first refusal when the land is sold. However, if the land is sold to a neighboring landowner, other neighboring landowners cannot exercise their right of first refusal. If there are multiple neighbors with the right of first refusal, the judge will transfer ownership to the one who contributes to agricultural integration.
New regulations have also clarified how movable properties related to agricultural lands are transferred. The heir to the sufficient income agricultural land can request the transfer of the necessary equipment, tools, and animals at their real value.
If a sufficient income agricultural land is associated with an industrial operation, such as product storage, protection, processing, and marketing, the ownership of the land and the industrial operation can be transferred as a whole to the qualified heir.
In case of dispute over the industrial operation, the judge will consider the economic value and integrity of the agricultural land and decide on the transfer or sale.
Conclusion:
These amendments aim to prevent the fragmentation of agricultural lands. The average farm size in Turkey is just 5.9 hectares, much smaller than in countries like the UK (53.8 hectares), France (52.1 hectares), Germany (45.7 hectares), and Spain (23.8 hectares). With these changes, Turkey has taken an important step toward competing with other countries in the agricultural sector.
Attorney Şefik ZİROĞLU – Intern Attorney Mert KARABAYIR