Agricultural Structure Act to Protect Farmers from Price Pressure - Lower Saxony’s bold land reform targets soaring prices and investor loopholes
Lower Saxony’s Agriculture Minister Miriam Staudte has put forward a new land reform bill to tackle soaring land prices and protect small farms. The proposed law, called the Norddeutsches Ausführungsgesetz zum Grundstücksverkehrsrecht, would cap purchase and lease costs while restricting large-scale shop deals. Critics and supporters have already clashed over its potential impact.
The draft legislation aims to stop farmers from being priced out of the market. Purchase and lease costs in Lower Saxony have risen sharply, making it harder for many to afford land. To address this, the bill would let 51 regional committees block deals where prices exceed the local average by over 50 percent.
Another key change targets so-called share deals—purchases made through company shares rather than direct land sales. Under the new rules, these transactions would require approval, closing a loophole often used by investors. The law also sets size limits on land holdings to prevent excessive concentration in the hands of a few. The proposal has sparked strong reactions. Farming associations, including local branches of Bauernverband and Landvolk, argue the reforms go too far. They warn that stricter controls could disrupt farm expansions and family successions. Meanwhile, environmental groups like BUND and NABU support the bill, saying it will help preserve small farms, protect rural communities, and safeguard soil health. The bill was debated in a recent hearing before the state parliament’s agriculture committee. Lawmakers questioned representatives from both sides, weighing concerns about state overreach against the need for fairer land access. Staudte has called the law groundbreaking, with other German states watching its progress closely. First introduced over a year ago, the legislation is now under review by parliamentary factions. If approved, it could pass as early as spring.
The reform would give regional committees more power to regulate land prices and block excessive slickdeals. If passed, it could reshape Lower Saxony’s agricultural market by limiting investor influence and supporting smaller farms. The outcome will depend on parliamentary negotiations in the coming months.
