If agricultural land is recovered, how will the investment cost be compensated for the land?
Article 96 stipulates compensation for land when the State reclaims agricultural land from households and individuals:
- Households and individuals who are using agricultural land when the State reclaims the land, if they meet the conditions for compensation prescribed in Article 95 of this Law, shall be compensated in agricultural land or in money or in land with a different purpose than the type of reclaimed land or in housing.
- Households and individuals who are using agricultural land when the State reclaims the land, compensation for agricultural land is regulated as follows:
+ The area of agricultural land to be compensated includes the area within the limit prescribed in Articles 176 and 177 of this Law and the area of land received by inheritance;
+ For agricultural land areas due to receiving land use rights transfer exceeding the limit before July 1, 2014, compensation and support shall be implemented in accordance with Government regulations.
- For agricultural land used before July 1, 2004, where the land user is a household or individual directly engaged in agricultural production but does not meet the conditions for being granted a certificate of land use rights and ownership of assets attached to land as prescribed in this Law, compensation shall be implemented in accordance with Government regulations.
Article 97 stipulates compensation for land when the State reclaims agricultural land from economic organizations, communities, religious organizations, and affiliated religious organizations:
- Economic organizations that are using agricultural land allocated by the State with land use fees collected, leased land with one-time land rental fees collected for the entire lease term, or receiving a transfer of land use rights when the State reclaims land, if they meet the conditions for compensation prescribed in Article 95 of this Law, will be compensated for land.
- Communities, religious organizations, and affiliated religious organizations that are using agricultural land when the State reclaims the land, if they meet the conditions for compensation prescribed in Article 95 of this Law, will be compensated for the land.
Accordingly, for households and individuals who are using agricultural land when the State reclaims it, if they meet the conditions, they will be compensated in the following forms: agricultural land; money; land with a purpose of use other than the type of reclaimed land or with housing.
For communities, religious organizations, and religious organizations that are using agricultural land when the State reclaims the land, if they meet the conditions for compensation prescribed in Article 95 of the Land Law, they will be compensated for the land.
* The remaining land investment costs specified in Clause 2, Article 107 of the 2024 Land Law are the costs that the land user has invested in the land according to the provisions of Clause 7, Article 3 of the 2024 Land Law.
How to calculate compensation for agricultural land when the State reclaims land
The State compensates compensation in cash calculated according to the specific land price of the type of recovered land decided by the People's Committee of the province where the land is located if there is no longer land fund for compensation and compensation (According to Point e, Clause 1, Article 160 of the Land Law)
At the same time, Article 30 of Decree 71/2024/ND-CP stipulates that specific land valuation must be implemented in accordance with the provisions of Article 158 of the 2024 Land Law and Articles 4, 5, 6, 7 of Decree 71/2024/ND-CP; results of synthesizing and analyzing information on market land prices; factors affecting land prices.
Specific land prices are determined for each land use purpose, the land area is determined in the land allocation, land lease, recognition of land use rights, allowing for change of land use purpose, extension of land use, adjusting the land use term, adjusting detailed plannings, allowing the transfer of land use forms, equitization of state enterprises, land use rights for land use rights, land use and surveys of land use rights.
Accordingly, in Clause 5, Article 7 of Decree 71/2024/ND-CP, specific land prices are determined by the land price adjustment coefficient method applied to the case of calculating compensation for land when the State reclaims it, which is calculated as follows:
Land price of land plot to be valued (1m2) = land price in the land price list of land plot to be valued x coefficient of land price adjustment.
