Status: 11.01.2024, 16:55 PM
By: Cefina Gomez
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Is it possible to keep one's head above water by farming in old age? Hops and malt are not lost yet, but the outlook is anything but rosy.
Frankfurt – There is less and less evidence of rural agriculture with a rural idyll. This is primarily due to the high economic pressure, which is making life increasingly difficult for people in agriculture. The farmers' protests once again illustrate how much the future of agriculture is at risk. In the course of the protests, residents in Frankfurt and the surrounding area must also expect traffic disruptions.
Actually, farmers could just grit their teeth and wait for their well-deserved retirement. Easier said than done, because a pension that fully ensures survival in old age is hardly achievable with pure agriculture.
The pension of most farmers is modest. © Stephanie Pilick/dpa/picture alliance
The farmers' struggle for retirement provision – that's what the farm levy has to do with it
Like all citizens in Germany born after 1964, farmers have the right to apply for a pension at 67. For the older age groups, a gradual adjustment of the retirement age will take effect. However, this is not regulated by the statutory pension insurance, but by the Social Insurance for Agriculture, Forestry and Horticulture (SVLFG).
The amount of the pension depends on whether and for how long farmers have paid into this special fund. Until a few years ago, however, farmers also had to contend with the farm surrender clause. In other words, only those who have sold their farm or leased or shut it down for at least nine years receive a pension.
According to a report by NDR, Jutta Sieverdingbeck-Lewers, a specialist lawyer for agricultural law and inheritance law, has been suing several farmers against this clause for nine years and has been vindicated. Since 2018, according to the Constitutional Court, the farm tax has been unconstitutional.
People who work in agriculture have a different pension system
However, the agricultural pension system is enormously different from what we know. While the pension payment is calculated as a percentage of income, agricultural employees pay a standard contribution to the pension fund.
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The aim of the agricultural social insurance (SVLFG) is not to provide complete old-age provision, as is the case with statutory pensions. In this case, only a retirement fund is sought as a second pillar of retirement provision, which is why this is also referred to as partial protection.
According to the SVLFG, farmers receive a gross pension of 30.520 euros per month for 59 years of contributions, without taking into account special circumstances, and assisting family members receive a gross pension of 260.61 euros (as of 1 July 2023).
Will farmers still be able to cope with their pensions in old age?
Financing the entire retirement provision with an agricultural company is hardly possible for most farmers. According to the Federal Ministry of Food and Agriculture, farmers need an additional supplement in old age, such as partial retirement benefits, rental income or private provision.
"It is likely that it will be difficult to earn enough money from agriculture alone to save money in addition to the contributions to the retirement fund, if you are not also active in other fields," estimates the lawyer Sieverdingbeck-Lewers at the request of the editors.
For lower-income farmers, the Office grants a contribution subsidy. In 2023, this subsidy will be up to 286 euros per month. However, even this subsidy could be insufficient without additional measures. Most recently, farmers tried to protect the earth from drought in the summer of last year in order to save the harvest. (cg)