After allocation: what an Algerian agricultural concession holder must do, and what loses the land

In short: Obtaining an agricultural concession in Algeria means signing a cahier des charges for up to forty years. Under Law 10-03, four breaches open cancellation: diverting the land from farming, leaving it unfarmed for a year, subletting it, or not paying the fee for two consecutive years (Article 29). On land to develop under Decree 21-432, failure to start works within six months is added. The procedure follows an order set by the texts: a finding, a formal notice, administrative cancellation, an appeal. When the concession ends, the State takes back the land and compensates surface assets, with a 10% reduction if the end results from a breach.

Keywords in this article

one year without farming is enough two consecutive unpaid fees subletting opens cancellation works within six months (Decree 21-432) bailiff's report, then formal notice two months to appeal (Law 10-03) compensation reduced by 10% one year for the heirs

1. 1. What does a new concession holder sign?

The selected applicant signs a cahier des charges, the concession's terms and conditions, with ONTA (or ODAS in the Sahara). The State lands services then draft the concession deed. The concession takes effect when that deed is published at the land registry.

PointLaw 10-03Decree 21-432 (land to develop)
Cahier des chargesModel in Annex III of Decree 10-326Model annexed to Decree 21-432
DurationUp to 40 years, renewable (Art. 4)Up to 40 years, renewable (Art. 10)
RenewalOn requestIn writing, at least one year before expiry
OwnershipNo transfer; the land stays with the StateNo transfer; the land stays with the State

On land to develop, the business plan filed with the application is annexed to the cahier des charges. It becomes the yardstick for inspections.

2. 2. What are the concession holder's obligations?

ObligationText
Farm directly and personallyLaw 10-03, Art. 22 ; Decree 10-326, Annex III, Art. 3
Keep the land in agricultural useDecree 10-326, Annex III, Art. 3 ; Decree 21-432, annex, Art. 6
Manage regularly and permanentlyLaw 10-03, Art. 23
No sublettingLaw 10-03, Art. 29 ; Decree 10-326, Annex III, Art. 3
Partnerships only by published notarised deedLaw 10-03, Art. 21
Pay the annual feeLaw 10-03, Art. 4 ; Decree 10-326, Annex III, Art. 9
Start works within six months of installationDecree 21-432, Art. 11
No leasing, subletting, mortgaging or transfer of the rightsDecree 21-432, annex, Art. 6
Allow ONTA to inspect the farmDecree 21-432, annex, Art. 7

Personal farming is the obligation that surprises people most. It rules out handing the land to someone else for rent, even within a family. To bring in an investor without losing the concession, the law provides for partnership, which we cover in farming partnerships on a State land concession.

3. 3. How is the fee paid, and what happens if it is not?

The fee is annual. Its amount is set by the finance law (Article 4 of Law 10-03; Article 12 of Decree 21-432). Neither text gives a figure, so you need the applicable finance law and the notice from the State lands inspectorate.

The Decree 10-326 cahier des charges sets the terms (Annex III, Article 9). The fee is paid in annual instalments, in arrears, to the competent State lands inspectorate. The holder periodically sends ONTA proof of payment.

Arrears have a clear limit. Article 29 of Law 10-03 lists non-payment of the fee for two consecutive years among the breaches. The Decree 21-432 cahier des charges applies the same rule.

Keep every receipt and every proof of what you sent to ONTA. In a dispute, you will be the one who has to prove payment.

Received a formal notice?

Reading the notice, working out the fees due, a plan to regularise within the deadline, and an appeal if needed.

Have my file reviewed

4. 4. Which breaches can cost you the concession?

BreachLaw 10-03 (Art. 29)Decree 21-432 (annex, Art. 8)
Diverting the land from farmingYesYes; agricultural use is an obligation
Leaving the land unfarmedOne yearWorks not started within six months
Leasing or subletting the landYesYes
Not paying the feeTwo consecutive yearsTwo consecutive years

Under Law 10-03 the limit is one year. Land left unsown for a whole season is already close to it. If something prevents you from farming, tell ONTA in writing: the Decree 10-326 cahier des charges requires you to report any event that affects the farm.

5. 5. How does cancellation work?

Both regimes follow the same logic, on different timelines.

StageLaw 10-03 (Art. 28)Decree 21-432 (Arts. 22 to 24 and annex, Art. 8)
FindingBy a bailiffBy official report
Formal noticeOne, from ONTA, with a deadline to complyTwo, fifteen days apart
CancellationAdministrative, by State lands at ONTA's requestRequested from State lands by ONTA or ODAS
AppealTwo months from notificationFifteen days from notification

The formal notice is the decisive moment. It sets a deadline to put things right: pay the fees, resume farming, end a lease. Doing so within that deadline stops the procedure.

The appeal period under Decree 21-432 is short. Fifteen days pass quickly if the notice arrives mid-season. Note the date of receipt on day one.

6. 6. What do you lose when the concession ends?

Under Law 10-03, Article 26 provides that the State takes back the land and surface assets in their existing condition. Surface assets such as buildings, plantations and water works are compensated at an amount set by the State lands administration. If the end results from a breach, compensation is reduced by 10%. The amount can be challenged.

Article 27 adds that liens and mortgages on the farm transfer to the compensation. A bank that financed a borehole will be paid from that sum before you are.

On land to develop, the Decree 21-432 cahier des charges transfers the immovable assets to the State on cancellation, while debts stay with the holder (annex, Article 11).

To measure what a concession is worth before investing in it, or before selling it, see how to value an agricultural concession right.

7. 7. What happens when the concession holder dies?

Under Law 10-03, the heirs have one year from the death to choose one of three options: appoint a representative, waive in favour of one of them, or transfer their rights (Article 25). After that, ONTA refers the matter to the competent court.

On land to develop, Decree 21-432 gives the heirs six months to ask to continue farming (Article 26). Where the holder is a company, its dissolution ends the concession and the land returns to the State.

These periods run without reminders. A family that waits until after mourning to deal with it can miss them.

FAQ — Frequently asked questions

Sources and references

  • Law no. 10-03 of 15 August 2010 setting the conditions and procedures for farming State private-domain agricultural land, Articles 4 (duration, fee set by the finance law), 21 (partnership), 22 and 23 (direct, personal, regular and permanent farming), 25 (heirs), 26 and 27 (end of concession, compensation reduced by 10%, mortgages transferred), 28 (finding, formal notice, cancellation, two-month appeal), 29 (breaches) — Official Gazette of the Algerian Republic no. 46 of 18 August 2010 (FAOLEX copy, FAO) · Verified on 22/10/2026
  • Executive Decree no. 10-326 of 23 December 2010 implementing the concession right for farming State private-domain agricultural land, Annex III, cahier des charges: Articles 3 (obligations), 5 (effective date), 8 (cancellation) and 9 (fee paid in arrears to the State lands inspectorate) — Official Gazette no. 79 of 29 December 2010 (FAOLEX copy) · Verified on 22/10/2026
  • Executive Decree no. 21-432 of 4 November 2021 setting the conditions for allocating State private-domain land to be developed under concession, Articles 10 (duration), 11 (works within six months), 12 (fee), 22 to 24 (formal notices, cancellation, fifteen-day appeal), 26 (heirs), and annex, Articles 4, 6, 7, 8 and 11 (model cahier des charges) — Official Gazette no. 85 of 7 November 2021 (FAOLEX copy) · Verified on 22/10/2026
BENSAID Farouk ProfitPilot

BENSAID Farouk

Financial & Economic Research Consultant — ProfitPilot NextGen Consulting

Certified sole trader and expert in financial studies, risk analysis and market research for SMEs, startups and investors in Algeria. View full profile