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Farm, ranch and forest land: small property limits, the 25 times cap for companies, series T shares and the 49 percent foreign limit

Last verified: 2026-10-26 · Status: Stable

Individuals may not hold farm land above the small property limits: 100 hectares of irrigated land for most crops, 150 for cotton, 300 for plantation crops, 800 hectares of forest, or the land for 500 head of cattle. Companies may hold up to 25 times those limits, with at least as many members as times they exceed the individual limit, an agricultural purpose and a special series T of shares for the land. Foreigners may hold at most 49 percent of series T shares, and excess land must be sold within one year after an order.

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Key facts

Small agricultural property limit, irrigated land, general crops	100 haLey Agraria art. 117, as of 2026-10-26 · in force
Small forest property limit	800 haLey Agraria art. 119, as of 2026-10-26 · in force
Small livestock property: land for up to this many head of large cattle	500 headLey Agraria art. 120, as of 2026-10-26 · in force
Maximum farm, ranch or forest land a company may own	25 times the individual small property limit Ley Agraria art. 126, as of 2026-10-26 · in force
Maximum foreign holding of series T (land) shares in farm land companies	49 %Ley Agraria art. 130, as of 2026-10-26 · in force

The rule

1. Small property limits. Latifundia are prohibited. Small agricultural property is up to 100 hectares of irrigated or first class humid land for general crops, 150 hectares for cotton and 300 hectares for banana, sugar cane, coffee, henequen, rubber, palm, grapes, olives, quina, vanilla, cocoa, agave, nopal or fruit trees. One hectare of irrigated land equals 2 of rain fed land, 4 of good pasture or 8 of arid pasture or scrub. Small forest property is up to 800 hectares; small livestock property is the land needed for up to 500 head of large cattle under the regional pasture coefficient. Improvements keep the land in its prior class.
Cost to do it: Agriculture Ministry certificates of land class are issued on request (art. 121); no fee is set in the Ley Agraria.
Example: A farmer with 60 hectares of irrigated land and 80 hectares of rain fed land for corn holds 60 plus 40 equivalent, 100 hectares, exactly the limit.Ley Agraria, DOF 26 February 1992, arts. 115 to 121 (art. 115 reformed DOF 19 December 2016, art. 120 DOF 9 April 2012), Arts. 115 to 121, 1992-02-26 official text · verified 2026-10-26

2. Companies: the 25 times cap and series T shares. Commercial or civil companies may not own farm, livestock or forest land above 25 times the individual small property limits. They must have at least as many individual members as the times their land exceeds the individual limit, a purpose limited to producing, processing or marketing farm, livestock or forest products, and a special series T of shares equal to the capital contributed in land or used to buy it. Series T carries no special rights, but only its holders receive land on liquidation. The bylaws must transcribe these rules. No individual may hold series T shares equivalent to more than one small property, and no company more than 25.
Cost to do it: Company formation costs; no federal fee in the Ley Agraria.
Example: A company growing avocados (fruit trees, 300 hectares per small property) may own up to 7,500 hectares of irrigated land if it has at least 25 members, a farm purpose and series T shares.Ley Agraria arts. 125 to 129, Arts. 125 to 129, 1992-02-26 official text · verified 2026-10-26

3. Foreign limit and registration. In these companies foreigners may not hold more than 49 percent of series T shares. The National Agrarian Registry keeps a special section recording the companies, their land, and the individuals and companies holding series T shares; administrators and series T holders must report the information. The Foreign Investment Law repeats the cap: foreign investment may hold up to 49 percent of series T shares of companies owning farm, livestock and forest land, and the LIE regulation defines series T as representing only capital contributed in that land or used to buy it.
Cost to do it: No fee in the Ley Agraria.Ley Agraria arts. 130 and 131; Ley de Inversión Extranjera art. 7, section III, item r); Reglamento de la LIE y del RNIE art. 2, Ley Agraria arts. 130 and 131; LIE art. 7, III r), 1992-02-26 official text · verified 2026-10-26

4. Excess land must be sold. If a company exceeds the limits, the agrarian authority orders it, after a hearing, to subdivide and sell the excess or regularize within one year; otherwise the authority chooses the land to be sold under state procedures, with ties at auction going to neighboring communities, the municipality, the state and the Federation. Excess series T shares must be sold the same way, and acts simulating series T holdings are void.
Cost to do it: Forced sale; no fine amount set in these articles.Ley Agraria arts. 124, 132 and 133, Arts. 124, 132 and 133, 1992-02-26 official text · verified 2026-10-26

Land and use	Individual limit	Company cap (25 times)
Irrigated, general crops	100 ha	2,500 ha
Irrigated, cotton	150 ha	3,750 ha
Irrigated, plantation crops listed in art. 117, section III	300 ha	7,500 ha
Forest	800 ha	20,000 ha
Livestock	Land for 500 head of large cattle	25 times that land

Small property limits and the company cap (Ley Agraria arts. 117 to 120 and 126).

Worked example

A US agribusiness and Mexican partners form a Mexican company to buy 2,000 hectares of irrigated land for vegetables (general crops). The land is 20 times the 100 hectare limit, so the company needs at least 20 individual members, a farm purpose, series T shares matching the land capital, and foreign holders may own no more than 49 percent of series T (arts. 126 and 130).

Step by step

1. Classify the land and crop and convert to irrigated equivalents (art. 117); request an Agriculture Ministry class certificate if useful (art. 121).
2. Design the company: farm purpose, series T shares, the art. 126 rules transcribed in the bylaws, and at least the required number of members.
3. Keep foreign series T holdings at 49 percent or less and register with the National Agrarian Registry special section (arts. 130 and 131).
4. Recheck limits before each new purchase or change of crop.

Common traps

Counting only direct holdings: members and series T are counted directly or through other companies (arts. 126 and 129).
Nominee members to meet the head count: simulated series T holdings are void (art. 133).
Changing crops: limits depend on the crop, so moving from fruit trees to general crops can put the land over the limit (art. 117).

Sources

← Ejido and communal land: who can buy parcels, full ownership (dominio pleno), preemptive rights, 30 year leases and contributions to companiesTitle, deeds and the Public Property Registry: when a notarial deed is required, preventive notices, registration effects, adverse possession and a due diligence checklist →