Colombia’s New Land Law Shifts Rural Property Sales to State Control

Colombia’s government has enacted a new law that changes how rural land can be sold in prioritized regions. In February 2025, President Gustavo Petro signed the Pact for Land and Life in Chicoral, Tolima, in front of thousands of rural workers and community leaders.

This agreement marks a renewed push to address the country’s long-standing issue of unequal land distribution. Colombia has some of the most concentrated land ownership in the world.

Official data and legal frameworks, such as Act 160 of 1994, show that previous attempts to limit the size of rural landholdings have not solved the problem.

The law created the Family Agricultural Unit and set limits to prevent large estates, but many large investors found ways to bypass these restrictions. As a result, rural inequality and land disputes have persisted for decades.

Decree 033 of 2025 introduces a new mechanism to change this reality. In areas selected for agrarian reform, any landowner who wishes to sell rural property must first offer it to the National Land Agency.

The agency has 15 business days to decide whether to buy the land. If it declines, the owner can then sell to other buyers. This process aims to give the state a stronger role in redistributing land to small farmers, Indigenous groups, and Afro-descendant communities.

Colombia’s New Land Law

The government’s action follows a history of failed reforms and broken promises. In 1972, the Pact of Chicoral ended earlier efforts at land redistribution, contributing to decades of rural conflict and poverty.

The new law seeks to reverse this pattern by making the state the first and preferred buyer in targeted areas, aiming to break up large landholdings and support family farming.

Business leaders and investors are watching these changes closely. The shift could affect land prices, investment strategies, and the rural property market, especially in agriculture and natural resources.

The law’s success depends on clear property rights, updated land records, and government support for new landowners, including infrastructure and market access. Colombia’s new land law represents a major test for state-led reform.

The government must balance the need for fairer land distribution with the importance of maintaining legal certainty and encouraging investment in rural areas. The outcome will shape the country’s rural economy and social stability for years to come.

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