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Rental Farming System: the Necessity of Law Enactment for Landlord-Tenant Relationship in the Iran Agriculture Sector
2019/06/30

by  H. Shirzad[i]

Part 2

The governing relations of the rental farming system are, institutionalized during ages; however, these regulations had been acting based on the established usage rather than legally written documents. Because of the mutual trust between tenants and landlords, most of the tenancy agreements were not formally registered, yet they worked as customarily and informal deeds and sometimes be signed by the trusted local people. The tenant paid the whole rent at the time of signing the tenancy agreement. The landlord delivers the due certificates for receiving agricultural inputs to the tenant along with a copy of tenancy agreement. Receiving any bank loan by the tenant requires signing a formal contract by the parties at the notary offices by the parties. The current enforced law is the one approved in 1997.Being informal and verbal, the governing relations of the rental farming demands to be systematized according to the national legal structure; however, this regulating process should be preceded by the due essential arrangements in order to block further arising problems. Nowadays it is unanimously accepted that rental farming needs to be integrated and lawful. This executive system of the rental farming is going to monitor and manage the whole process. The involving organizations and persons, including Agriculture –jahad ministry, Iran agricultural engineering  organization, the organization for registration of deeds and properties, the landlord and the tenant are assigned with specific duties in establishing an executive system for rental farming. To this end, creating a specific guild system, like the union of the real estate agencies, is deemed necessary in order to supervise the legality of the farm rent in  the meantime, the role of rural production cooperatives is crucial, in as much as they manage the rural farming system, along with, they can organize the rental ones, too. Providing a legal and business-oriented mechanism which includes the interest of both parties such as rent timing, rural production cooperative could manage the rental farming system. Having learned by experience, the one-year renting period causes a loss for both parties, by virtue of the maximum exploitation of land will lead to soil erosion. As an instance, some Isafahanian and Yazdian tenants, in order to achieve maximum profit during one year, we're using the whole water which was not a sustainable method.

 Taking the role of a mutual-consent arbitrator as well as a supervisory agent, the rural production cooperative, could definitely settle arising disputes through development of a fair tenancy agreement.

The second role of a rural production cooperative is to educate the tenants to be skilled as native farmers, in other words, it could reorganize water and land resource exploitation as participatory approach organization, and moreover, it could provide services including extension, securing inputs and create a revenue resource for members.

The second role of a rural production cooperative is to educate the tenants to be skilled as native farmers, in other words, it could reorganize water and land resource exploitation as participatory approach organization, and moreover, it could provide services including extension, securing inputs and create a revenue resource for members. The last, but not the least, the agriculture sector needs directs and indirect education, de facto. The increasing rate of agriculture educated, lack of entrepreneurship opportunities, the landless farmers and, the weak financial potential of small scale farmers are leading the agriculture sector toward a transitive farming system, in which many countries have domesticated and applied them as different forms of rental farming system, as a promising transition in the agriculture system. 



[i] Hossein Shirzad is the deputy minister of Agriculture- Jahad and CEO of the Central Organization for Rural Cooperatives (CORC).

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