Organic soil: arable land in the hands of organic farmers

by Robert B. Fishman

Germany's farmers are running out of land. Farmers still cultivate around half of the area in Germany. But arable land is becoming increasingly scarce and expensive. There are several reasons for this: Since there is no longer any interest on bank accounts and well-rated bonds, investors and speculators are buying more and more agricultural land. It cannot be increased and is even getting less and less. Every day in Germany around 60 hectares (1 ha = 10.000 square meters) of land disappear under asphalt and concrete. In the last 15 years, around 6.500 square kilometers of roads, houses, industrial plants and other things have been built over in this country. This corresponds to roughly eight times the area of ​​Berlin or around a third of the state of Hesse.  

Farmland as an investment

In addition, many farmers in the surrounding areas of the expensive cities are selling their land as building land. With the proceeds they buy fields further out. 

High demand and low supply drive prices. In north-eastern Germany, the price for one hectare of land almost tripled from 2009 to 2018 to an average of 15.000 euros; the nationwide average is around 25.000 euros today, compared to 10.000 in 2008. The financial magazine Brokertest names an average price of 2019 euros per hectare for 26.000 after 9.000 in 2000.

"Agricultural land is usually a long-term investment goal with which very good value developments have recently been achieved," it says Post Further. Even insurance companies and furniture store owners are now buying more and more farmland. The private foundation of the ALDI heir Theo Albrecht junior has acquired 27 hectares of arable and pasture land in Thuringia for 4.000 million euros. Of the Thünen Report of the Federal Ministry of Food and Agriculture BMEL reported in 2017 that that in ten eastern German districts a good third of the agricultural companies belong to supra-regional investors - and the trend is rising. 

Conventional agriculture leaches out the soils

Highly industrial agriculture exacerbates the problem. As the world population grows, so does the demand for food. Farmers try to harvest more and more from the same area. The result: Soils leach out and yields decline in the long term. So in the long run you need more and more land for the same amount of food. At the same time, farms are turning areas into corn deserts and other monocultures. The harvests migrate to biogas plants or into the stomachs of more and more cattle and pigs, which satisfy the world's growing hunger for meat. Soils are eroding and biodiversity continues to decline.

 Large-scale industrial intensive agriculture, too much fertilizer and pesticides as well as droughts and floods as a result of the climate crisis and the spread of the deserts have destroyed around 40 percent of arable land worldwide in recent years. Mankind's growing hunger for meat needs more and more space. Meanwhile serve 78% of the agricultural area used for animal husbandry or the cultivation of feed. At the same time, only six percent of cattle and every 100th pig grow up according to the rules of organic farming.

Land is becoming too expensive for small organic farmers

The rents increase with the price of the land. Young farmers in particular who want to buy or expand a business are at a disadvantage. You don't have enough capital to bid at these prices. This mainly affects the short-term, less profitable and mostly smaller organic farms, agriculture more sustainable and climate-friendly operate than their “conventional” colleagues. 

Poisonous "pesticides" and chemical fertilizers are prohibited in organic farming. Significantly more insects and other animal species survive on organic fields. The habitat for microorganisms and other living beings is preserved in the soil. The biodiversity is significantly higher on an organic field than on a “conventionally” farmed piece of land. The groundwater is less polluted and the soil has more opportunities to regenerate. A study of the Thünen Institute and six other research institutes certified organic farming in 2013 as being highly energy efficient and having low area-related CO2 emissions as well as advantages in maintaining biodiversity: “On average, the number of species in arable flora was 95 percent higher for organic farming and 35 percent higher for field birds. " 

Organic is kind to the climate

When it comes to climate protection, too, "organic" positive effects: “Empirical measurements show that the soils in our temperate climate zones produce fewer greenhouse gases under ecological management. Organic soils have an average ten percent higher content of organic soil carbon, ”reported the Thünen Institute in 2019.

Demand for organic food is greater than supply

At the same time, organic farmers in Germany can no longer keep up with the growing demand with their production. The result: more and more products are being imported. Currently around ten percent of the fields in Germany are cultivated according to the rules of organic farming. The EU and the German federal government want to double the share. But the organic farmers need more land. 

That's why she buys Organic soil cooperative from the deposits of its members (a share costs 1.000 euros) arable land and grassland as well as entire farms and leases them to organic farmers. It only leaves the land to farmers who work in accordance with the guidelines of cultivation associations such as Demeter, Naturland or Bioland. 

"The land comes to us through the farmers," says BioBoden spokesman Jasper Holler. “Only those who can use land permanently can really strengthen soil fertility and biodiversity. The bottleneck is the capital. "

"The land comes to us," replies BioBoden spokesman Jasper Holler, the objection that his cooperative, as an additional buyer, would drive up land prices further. 

"We do not drive up prices because we are based on the standard land value and not just market prices and do not participate in auctions." 

BioBoden only buys land that farmers need right now. Example: A lessor wants or has to sell arable land. The farmer who works the land cannot afford it. Before the land goes to investors from outside the industry or to a “conventional” farm, it buys organic land and leases it to the farmer so that he can continue.

If two organic farmers are interested in the same area, we will try to find a solution together with the two farmers. ”Organic soil spokesman Jasper Holler. 

“1/3 of today's active farmers will retire in the next 8–12 years. Many of them will sell their land and their farms in order to live on the proceeds in old age. ”BioBoden spokesman Jasper Holler

"Huge demand"

“The demand is huge,” reports Holler. The cooperative only buys land at market prices based on the standard land value, does not participate in auctions and stays out of it when, for example, B. several organic farmers compete for the same piece of land. Nevertheless, BioBoden could buy a lot more fields if she had the money. Holler points out that in the next few years "around a third of the farmers currently active will retire". Many of them would have to sell the farm for their retirement benefits. In order to secure this land for organic farming, organic soil still needs a lot of capital.

“We need to rethink our consumption. The rainforest is being cleared for meat production here and for meat imports. "

In the six years since it was founded, the cooperative claims to have gained 5.600 members who have brought in 44 million euros. BioBoden bought 4.100 hectares of land and 71 farms, for example: 

• in the Uckermark a complete agricultural cooperative with more than 800 hectares of land. This is now used by the Brodowin organic farm. Even small farms from Solawi nurseries to wineries have land secured by the cooperative.
• Thanks to the help of BioBoden, cattle from an organic farmer graze on a bird protection island in the Szczecin Lagoon.
• In Brandenburg, a farmer successfully grows organic walnuts on organic fields. Up to now, 95 percent of these have been imported.

BioBoden also offers coaching seminars and lectures at universities to support prospective organic farmers when setting up their own businesses.

"We lease the land to organic farmers for 30 years with options to extend every 10 for a further 30 years." 

The number of BioBoden members continues to grow. In 2020 the cooperative recorded the largest growth in its short history. The members invest out of idealism. They do not get a return for the time being, even if this is "not excluded" in the future.

“We have also set up a foundation. Land and farms can be given away tax-free to them. Our BioBoden Foundation has received four farms and numerous arable land in four years. People want their farms to be kept for organic farming. "

The cooperative is also currently working on a concept of how members can benefit directly from the farms' products. At times they can shop online at BioBoden-Höfe.

Organic soil info:

Anyone who buys three shares of 1000 euros each at BioBoden finances an average of 2000 square meters of land. In purely mathematical terms, that is the area that you need to feed a person.