By lease of farmland shall be meant the use of another personr house constructiod for the purpose of cultivation by oneself by paying a rent therefor.
The term “cultivation” referred to in the preceding paragraph shall include fishing and pasturing.

When the lessor offers his farmland for sale or dien, the lessee shall have preferential right to purchase it or accept the dien on the same terms as are offered to any other person.
The provisions of Paragraph two of Article 104 shall, mutatis mutandis, apply to the purchase or dien referred to in the preceding paragraph.

The lessee shall not, even with the consent of the lessor, sublease the whole or part of the leased farmland to another person.

Any farm lease contract for a definite period shall, unless the lessor takes back the land for his own cultivation on the expiration of the contractual period, be deemed to have been renewed for an indefinite period, if the lessee continues to cultivate the said land.

Farm rent shall not exceed 8 per cent of the value of the land. If any contractual or customary rent exceeds 8 per cent of the value of the land, it shall be reduced to 8 per cent; if it is less than 8 per cent, it shall remain unchanged.
“The value of the land” referred to in the preceding paragraph shall mean the statutory value of the land, or, in localities where the value of land has not been assessed according to Act, the average value of the land for the last three years.

The lessee of a farmland may, according to custom, pay the rent with farm crops in lieu of cash.

The lessor of a farmland shall not collect farm rent in advance. But if cash deposit is payable according to local custom as security for the lease of a farmland, the amount of such deposit shall not exceed one-fourth of the annual rent.
The interest on the cash deposit referred to in the preceding paragraph shall be deemed as part of the farm rent, and its rate shall be determined by the general rate of interest prevailing in the locality.

If the lessee is unable to pay the rent in full when due, but pays only a fraction thereof, the lessor shall not refuse to accept such payment, nor shall the lessee presume that the acceptance of such payment indicates the lessor’s consent to a reduction of rent.

Any farm lease contract for an indefinite period may be terminated only under any one of the following conditions:
(1)Where the lessee dies without leaving an heir.
(2)Where the lessee waives his right of cultivation.
(3)Where the lessor takes back the farmland for his own cultivation.
(4)Where the farmland is to be put to some other specific use in accordance with Act.
(5)Where the lessee violates the provisions of Article 432 and paragraph two of Article 462 of the Civil Code.
(6)Where the lessee violates the provisions of Article 108.
(7)Where the cumulative amount of the rent the lessee has failed to pay is equivalent to the total of two years’ rent.

If the lessee intends to waive his right of cultivation, he shall declare his intention to the lessor three months in advance. Non-cultivation for one full year by the lessee for any cause other than force majeure shall be considered as a waiver of the right of cultivation.

Where a farm lease contract is to be terminated according to the provisions of Sections (3) or (5) of Article 114, the lessor shall notify the lessee of the intended termination one year in advance.

Where the farmland taken back by the lessor for his own cultivation is again offered for lease, the original lessee shall have preferential right to accept the lease. Where the said land is again offered for lease within a year from the date when it was taken back by the lessor, the original lessee may acquire the lease on identical terms as those agreed upon in the original lease contract.

The lessor shall not exercise the right of retention provided for in Article 445 of the Civil Code over such farm implements, livestock, fertilizers, and farm products of the lessee as are necessary for cultivation.

By special improvements on farmland shall be meant improvements resulting from the increased application of labor and capital which, besides preserving the original qualities and utility of the land, increases its productivity or facilitates its cultivation.
The lessee may freely make the special improvements referred to in the preceding paragraph, but he shall notify the lessor of the amount of the outlay incurred thereon.

When any farmland is returned to the lessor on the termination of the lease contract according to the provisions of Section (2), (3), (5) or (6) of Article 114, the lessee may claim from the lessor repayment of the outlay incurred on the special improvements referred to in Paragraph two of the preceding Article, but such repayment shall be limited to the cost of that part of the special improvements which has not lost its utility.
The provisions of the preceding paragraph shall apply mutatis mutandis, when the right of perpetual lease (yungtien) is revoked according to the provisions of Articles 845 and 846 of the Civil Code.

The lessor of any farmland who supplies the lessee with draft animals, seeds, fertilizers, and other implements of production may, besides conforming to the provisions of Articles 462 and 463 of the Civil Code, charge a reasonable fee therefor in addition to the farm rent, if such fee is stipulated in the lease contract; but such fee shall not exceed an amount equivalent to an annual interest of 10 per cent on the value of the things supplied.

Any dispute arising out of the lease of a farmland between the lessor and the lessee may be submitted to the competent Special Municipal or County (City) Land Administration Agency for conciliation. Any party to the dispute who refuses to abide by the terms of conciliation may bring the case before the judicial authorities for adjudication.

In case of any crop failure, the competent Special Municipal or County (City) Government may, in the light of actual crop conditions in the current year, make decisions on the reduction or remission of farm rent in the affected localities, but such decisions shall be subject to the approval of the local assembly of people’s representatives.

The provisions of Articles 107 to 113 inclusive and of Article 121 shall, mutatis mutandis, apply to lands subject to perpetual lease (yungtien).