In brief: agricultural land acquisition and use in Germany

Land acquisition and use

Identify and summarise the enacted legislation addressing agricultural property transactions in your jurisdiction. Outline how farmland is typically held.

When purchasing agricultural property, the general statutory regulations on the purchase of real estate in the German Civil Act, in particular section 433, 925 et seq., 311 lit. b) BGB, must be taken into account. Further special aspects may also arise from the Property Transaction Act and, where applicable, the Reich Settlement Act.

Proper care of farmland is regulated by section 17 of the Federal Soil Protection Act:

The principles of good agricultural practice in particular include that

1. soil cultivation must always be carried out in a location-adapted manner, taking account of the weather,

2. the soil structure is maintained or improved,

3. soil compression shall be avoided as far as possible, in particular by taking into account the type of soil, soil moisture and soil pressure caused by equipment used for agricultural land use,

4. soil erosion should be avoided as far as possible through site-adapted use, in particular by taking account of slope inclination, water and wind conditions and soil cover

5. the naturally accentuated structural elements of the field, in particular hedges, scrubs, field margins and field terraces, which are necessary for the protection of the soil, are preserved,

6. the biological activity of the soil is maintained or enhanced by appropriate crop rotation, and

7. the soil humus content typical of the site is obtained, in particular, by a sufficient supply of organic matter or by reducing the intensity of cultivation.

Outline any rules related to use of farmland for non-agricultural uses.

The principles of admissible forms of use of land follow from the general planning and building laws, in particular from the land-use plans enacted under these laws. The use of land outside of settlements is usually strictly limited.

What special rules are important to agricultural lending in your jurisdiction?

There are no special rules regarding agricultural lending in Germany.

Describe any rules relating to public control of farm property in your jurisdiction. What enacted legislation governs them?

Regarding the public control of farm property in Germany, the German land traffic act (GrstVG) makes the sale of agricultural holdings subject to a licensing procedure. According to section 2 of the GrstVG, all purchases of agricultural property require the approval of agricultural authority. The aim of this procedure is to improve the agricultural structure and to help maintain agricultural holdings to ensure the food supply of the population.

Moreover, the government can make use of the land consolidation act (FlurbG). This suggests the possibility of reorganising rural land ownership to improve production and working conditions in agriculture and forestry and to promote general regional culture and rural development (section 1 of the FlurbG).

Are there any restrictions on foreign ownership of farm property in your jurisdiction? What enacted legislation governs them?

As agricultural property is a scarce and special asset that deserves special protection, some EU member states impose restrictions on its purchase by foreigners. Germany, however, is not among those countries.

Law stated date

Give the date on which the information above is accurate.

18 December 2019.