Germany moves to regulate agricultural land and wind energy leases

Germany is seeing legislative efforts to regulate land use and energy lease revenues. In Lower Saxony, the state government is proposing an agricultural structure law aimed at keeping farmland affordable for family farms. The law seeks to prevent land speculation by allowing authorities to review and potentially block sales where prices exceed 35 percent of the standard market value. Additionally, a reform of the land transfer tax is being considered to support small businesses and new agricultural entrepreneurs.

At the federal level, negotiations are underway regarding the Renewable Energy Sources Act (EEG). A proposed amendment aims to introduce a cap on lease payments for wind energy installations starting in 2027. This measure is intended to reduce project costs and limit the indirect state subsidies currently used to cover high lease rates paid to landowners. The proposed cap would limit lease payments to 3.5 percent of an installation's annual revenue.