The influence of agricultural inheritance laws on structural change in German agriculture

Abstract

The proclaimed aim of agricultural inheritance law in Germany and its preferential treatment of the farm successors is to maintain sustainable agricultural enterprises. To clarify this situation, this contribution exemplifies the financial assistance obtained through the legal situation and analyses a farm survey of about 1000 farms larger than 30 ha. As a result, it is noted that not only sustainable but also unsustainable farms are protected from division - an effect which causes delay in structural change. It is therefore suggested that the agricultural inheritance law be changed in such ways that only the so-called BGB land value law and the allocation rights included in the land trade laws are maintained. As a consequence, the incentive of the farm owner or his successor is required if special inheritance laws are to be implemented.