Vote in the state parliament: Law should secure farmland in farmers' hands

Agricultural land should remain affordable for family farmers - this is the aim of a proposed law by Agriculture Minister Miriam Staudte (Greens). Lower Saxony is the first federal state with such a law passed by the state parliament.

With the law, the red-green state government wants to prevent agricultural land from becoming an object of speculation, explained the leader of the Green party in the state parliament, Anne Kura. “Since 2004, the average price per hectare has tripled from around 13,000 to 41,000 euros,” said the politician.

Business growth should not be restricted

It is therefore becoming increasingly difficult for small and medium-sized companies to acquire their own land. The aim is to limit speculation with the areas more. Purchase prices that are more than 35 percent above the usual market value should be checked using the new law and corresponding sales should also be stopped. “It’s essentially about ensuring that arable land should be and remain in farmers’ hands,” explained Kura.

The Green Party politician emphasized that the growth of companies should not be restricted: “Normal operational growth should remain possible.” However, there should be the possibility of intervention in the event of an excessive concentration of land if companies are restricted in their development opportunities due to excessive land prices.

For the first time, so-called share deals, i.e. the acquisition of shares in companies with agricultural property, are also subject to the approval of the approval authorities. This is intended to prevent previously unregulated access for investors from outside the industry.

Rural people fear the opposite effect

A reform of the real estate transfer tax in the agricultural sector is also intended to provide relief for small businesses and those starting up agricultural businesses when purchasing land through lower tax rates. The state wants to lobby the federal government for a state opening clause so that different tax rates could be possible, said Kura.

The rural population of Lower Saxony reacted reservedly to the proposed law. It is feared that the regulations will have the opposite effect as desired and that rental prices will continue to rise. The state farmers' association also warns against additional bureaucracy and that the law massively expands the privileges of nature conservation associations and public bodies when acquiring land in rural areas.

“With additional regulations like these, people in rural areas lose their rights to decide for themselves and in accordance with the situation about their land use,” commented Rural People’s President Holger Hennies.