Agriculture

For many years, we have advised on and dealt with these matters on behalf of farmers. By reference to our experience and interest in the laws of agriculture, we are able to give advice e.g. on the following subjects: corporate rules of the Danish Agriculture Act and the possibilities of obtaining exemption from these rules, leases, companies in agriculture, succession planning, parcellation and consolidation, as well as environmental issues in a wide sense.

In an EU context as well, agriculture occupies an important position, and many subsidy schemes in agriculture - e.g. the basic payment scheme, green support schemes and the rules of cross-compli­ance – are based on EU rules. On those grounds, we also advise on payment entitlements, preventive actions and possible consequences of violations of the relevant EU rules applying to this area.

The following are examples of subjects covered by our advice:

Leases, companies in agriculture, succession planning, alternative energy (windmills, biogas and solar cells), parcellation and consolidation, purchase and sale of agricultural holdings, corporate reconstructions with options, risks and hindrances, environment, EU rules.

Purchase and sale of agricultural holdings

When purchasing or selling an agricultural holding, you ought to pay particular attention to the following conditions; apart from the general problems associated with the purchase and sale of real estate:

• Trading limits under the Danish Agriculture Act, including the residence requirement;
• the production basis, including environmental approvals;
• environmental issues in a wide sense, including storage capacity and drainage facilities;
• potential subsidy schemes, primarily under the basic payment scheme and the green support scheme as well as the assignment of rights;
• tax consequences for both parties in connection with the distribution of purchase price etc.;
• problems relating to cross-compliance.

Environmental risks in connection with agriculture

Environmental damage constitutes a considerable risk to all business owners. In agriculture, environmental risks often occur in connection with the storing and spreading of animal fertilizers, the use of pesticides, or in connection with other types of damage such as e.g. fire damage or traffic accidents.

As the damage may in all cases be considerable (and not always covered by insurance), good management means having all environmental risks in mind, considering how to prevent or mitigate damage. Maintenance of equipment and instruction of employees may e.g. mitigate the risk. The conditions of an environmental permit, where relevant, must of course always be observed. Further, the risk ought to be covered by insurance, wherever possible (check your policy). Finally, it is important to act quickly and well-considered in case of accidental damage (an emergency plan must always be ready and prepared).

If you wish to know more about environmental law, you can read more about this subject under the menu option Environment