Land cooperatives/foundations

Land cooperatives and partly also foundations make land available to farmers, who cultivate it according to predefined criteria. While cooperatives use money from the shares of their members to buy land, foundations receive land through donations or finance it using donations.

Prices for arable land have sharply increased in Germany in the last few years. One reason for this development is the increased use of land as an object for speculation by non-agricultural investors. Therefore, prices have increased on average by 113% in Germany between 2007 and 2015; in Brandenburg and Mecklenburg-Vorpommern prices have even quadrupled in this period. As a consequence young farmers are faced with increasing difficulties when starting a new farm and also established farms have difficulties to buy additional land.

Land cooperatives and foundations withdraw land from the market and provide it to farmers on a long-term basis. Consequently, land speculation is prevented, small-scale structures in agriculture are sustained and promoted, young farmers are supported and land is secured for sustainable use. Two aspects are innovative – farmers get access to land apart from the market and the fulfillment of criteria for sustainable management (most frequently organic farming) stand above pursuing profit.

Partly the willingness of the population to become members of cooperatives or to provide donations to foundations is still lacking. The high and increasing prices for land as well as the availability of land are still challenges for land cooperatives and foundations.

Land cooperatives and partly also foundations make land available to farmers, who cultivate it according to predefined criteria. Therefore, land cooperatives and foundations withdraw land from the (capital) market and support and protect small-scale structures in agriculture, young farmers and sustainable farming systems. Thus, land cooperatives and foundations have a rather indirect, but strong sustainability potential. The addressed issue is - in the foreseeable future - becoming increasingly problematic which is why the promotion of the niche is gaining importance. Currently, there are constraints through high prices for land as well as availability of land which limit the expansion.