- From 500 €
- Yield of 2 to 3% per year
- Income tax reduction – 25% of the invested amounts
- Finansol-labeled and ESUS-approved solidarity real estate
- Strong social and environmental impact
Invest in agricultural land with the solidarity real estate FEVE
FEVE stands for « Fermes En ViE, » a solidarity real estate that allows easy investment in agricultural land to bring agroecological farms to life in France.
FEVE has a dual public interest mission: to establish the new generation of agriculture and accelerate the agroecological transition. This mission allows the real estate to have ESUS (Solidarity Company of Social Utility) accreditation and the Finansol Label. The Finansol Label has been recognized since 1997 and distinguishes socially responsible savings products from more « traditional » savings products.
This investment gives investors the opportunity to combine responsible investment, tax reduction, and stable returns.
How does it work?
In practice, investors invest a portion of their savings in the real estate (Les FEVES, managed by Fermes En Vie), with a minimum amount of 500 €. The funds collected are used to purchase agricultural land: farmland, agricultural buildings, and residential buildings. In summary, it is a common fund that finances the purchase of farms.
These agricultural farms are then leased through a rural lease with environmental clauses to farmers who have an option to purchase this land. This option allows them to acquire it after 7 years.
Farmers are carefully selected by FEVE to ensure the reliability of the projects and to limit the risk on the return. All individuals who settle commit to respecting an agroecological charter that obliges them to adopt more environmentally friendly agricultural practices.
Investing in agricultural land, what returns?
Agricultural land is a tangible asset whose value has been steadily increasing for several decades. There has been a positive evolution of 3% per year between 1997 and 2022. In France, the price of land is lower than that of our European neighbors. In France, agricultural land is approximately 6,000 euros per hectare, while in Europe, the average is close to 18,000 euros. Therefore, it is reasonable to assume that this progression will continue in the coming years, making agricultural land investment a relatively stable and low-risk placement, often considered a safe haven.
The annual return target of the real estate is 2 to 3%, thanks in particular to rents paid by farmers and the appreciation of acquired farms. The return is not paid in the form of dividends. The price of the share is revalued each year at the General Assembly. It is at the time of selling the shares that the investor recovers their initial investment plus any accumulated return.
This return is significantly improved by a tax reduction allowed through the real estate’s status.
Tax reduction by investing in agricultural land
For each investment in FEVE’s real estate, investors can benefit from a 25% income tax reduction on the invested amounts. For example, if you invest 10,000 euros in FEVE’s real estate, you can reduce your income tax by 2,500 euros.
This tax reduction significantly increases the return to around 5 to 6% per year.
The tax niche’s cap limits this tax reduction to 10,000 euros per year (an investment of 40,000 euros per year in the real estate). However, in case of exceeding this limit, it is possible to carry over for 5 years.
In exchange for this tax advantage, the state requires investors to retain the securities for a minimum of 7 years. In case of withdrawal before this date, the tax reduction must be repaid by the beneficiary.
Another interesting tax advantage, the shares of the solidarity real estate are exempt from the Real Estate Wealth Tax (IFI).
How to subscribe?
Everything is done online on the FEVE website. The minimum investment is 500 euros, there is a form with some information to fill out, and then an online subscription form to sign.
All investors then have access to a personal space that allows them to regularly receive news about the funded farms and find all documents related to the investment (such as tax receipts, for example).
In less than 10 minutes, it is possible to invest in agricultural land and support dozens of farmers in their installation projects.
It is also possible to offer shares in the real estate starting from 50 euros to allow loved ones to discover investment in agricultural land. It is an ethical, impactful, and appreciating gift.
Why is it important to invest in agricultural land?
In France, half of the farmers are retiring, and the food sovereignty of our country is at risk. We must act now to protect our land and our food. Renewing generations in agriculture must be a priority.
Historically, farms were passed down from parents to children, but this is no longer the case today. The majority (2/3) of installations are done outside the family framework. Young people who are starting out no longer inherit farms and must buy them. And a farm is expensive, costing several hundred thousand euros, sometimes even more than a million euros. The cost of land is the main obstacle to installation today. This difficulty in acquiring farms by younger individuals leads the market towards the enlargement of farms and the takeover of land by agro-industry.
The real estate’s mission is to facilitate access to agricultural land for this new generation to prevent 200,000 farms from disappearing or expanding.
FEVE aims to turn this challenge into an opportunity by moving the French agricultural system towards more environmentally and socially responsible practices. The preservation of water resources, soils, and biodiversity, among other things, is a major issue and one of the great challenges of agriculture in the coming years.