According to figures from the German Federal Statistical Office, prices for agricultural land have risen by an average of 2.3 times across Germany over the past ten years. One of the main reasons for this development is that more and more investors see large-volume agricultural land as a good investment for real estate. Especially in Mecklenburg-Western Pomerania as well as in Saxony, agricultural land is very popular among investors as a form of investment.
As a result of these developments, farmers can no longer afford existing land financially. This is because investors and corporations are leasing the agricultural land they have acquired at very high purchase and lease prices. Competition for vacant agricultural land is also particularly high, driving up prices for arable land.
So-called share deals in particular pose a major threat, explains Andreas Tietz, a scientist at the Thünen Research Institute for Rural Areas, in his 2017 report "Supra-regionally active capital owners in eastern German agricultural companies". This is because, especially in the new federal states, there are numerous agricultural companies in the form of a cooperative or a limited liability company. This enables investors to take over large shares in the agricultural company without having to buy the land directly. Such an option is particularly attractive for investors, because this way they may be able to avoid land transfer tax.
Source: Thünen Research Institute
© photodune.net
