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BVVG - Bodenverwertungs- und -verwaltungs GmbH. Oct. 2005. BVVG. Realignment of Land. Historical Background. Land reform 1945-1949 Collectivisation after 1949 Privatisation after reunification. Total Area: 13,4 Mio parcels. Total Area: 10,8 Mio ha.

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BVVG - Bodenverwertungs- und -verwaltungs GmbH

Oct. 2005


Realignment of Land

Historical background
Historical Background

  • Land reform 1945-1949

  • Collectivisation after 1949

  • Privatisation after reunification

Oct. 2005

Total Area: 13,4 Mio parcels

Total Area: 10,8 Mio ha

Property of church:

0,15 Mio parcels

Property of church:

0,2 Mio ha

Privately owned land

5,1 Mio ha

Publicly owned land

4,5 Mio parcels

Publicly owned land

5,5 Mio ha

Privately owned land

8,7 Mio parcels

Starting Position

Oct. 2005

Situation in the agricultural sector in 1989
Situation in the Agricultural Sector in 1989

  • 4.500 Collective Farms

  • 515 State Farms

  • 2,2 Mio ha of agricultural land in state ownership (35%)

  • 2,0 Mio ha of forestry land (90%) in state ownership

Oct. 2005

Turning publicly owned land into private property
Turning publicly owned land into private property

  • Foundation of the German Trust Agency (Treuhandanstalt) January 1990

    • Objective: Privatization of state owned property

  • Foundation of BVVG - July 1992

    • Goal 1: Privatization of state owned agricultural and forestry land

    • Goal 2: Restitution

  • Supervision of BVVG through Ministry of Finance

    • in cooperation with the Ministry of Consumer protection, Food and Agriculture

Oct. 2005

Basic concept of the bvvg
Basic Concept of the BVVG

  • Uniform Privatisation in all New Federal States of Germany

  • Independent Privatisation - as a limited company - comparatively minor influence of day to day politics

  • Transparent Privatisation and Administration - Approaches and Results publicly available

  • Turnover-oriented Privatisation - surpluses of revenues are being transferred directly to the Ministry of Finance

  • Socially responsible for a balanced development of the rural areas in co-operation with the agrarian administrations and elected bodies

Oct. 2005

The bvvg

  • An Organization of the Federal Republic of Germany

    • Sole shareholder is the Ministry of Finance (BMF)

    • is supervised by the Ministry of Finance in cooperation with the Ministry of Consumer protection, Food and Agriculture (and Forestry)

  • Fulfills a legal mandate

    • Privatization and Restitution of formerly publicly owned agricultural and forestry land

Oct. 2005

BVVG - Service provider for the Ministry of Finance

Revenues from sale and lease

Administrative costs of BVVG

and minimun profit

Federal Ministry of Finance

Costs for parcels(dues, pay out,


Oct. 2005

Structure of bvvg








NL 8

Structure of BVVG

Berlin: Head office


central services

231 employees


Operational Level

717 Employees


Oct. 2005

Our core competencies
Our Core Competencies....

  • Transformation of ownership relations in rural areas by ...

    • Sale of agricultural and forestry land as well as land for housing area and industry

    • lease of agricultural land, of fishery and hunting rights

    • Management of abridgment of buildings and redevelopment of contaminated sites

    • Realization of restitution and handing back land to municipalities

Oct. 2005

Competency through management of…

  • > 1.700.000 ha Arable/pasture/forestry

  • 515 State farms

  • 4,6 Mio parcels

  • 30.000 active purchase applications

  • 75.000 sales contracts

  • 400.000 client data

Oct. 2005

The road towards privatisation in east germany

III. Phase

Sale at

Market Value

II. Phase

Subsidised Sale

Law of compensation

I. Phase

Short/Long Term


The Road towards Privatisation in East Germany

  • Stabilisation of emerging farms

  • Basis for future sales

  • 1992 - 1996

  • Consolidation of the newly developed agrarian structure

  • Development of forestry structure in private hands

  • 1996 - 2010

  • Sale of land within the fully developed land market

  • beginning 2005

Oct. 2005

BVVGBodenverwertungs- und -verwaltungs GmbH

The Privatization process

Basis and Mechanisms for Internal and External Supervision, Control and Monitoring

Control and Supervision of the Privatisation Process is realised on the following Levels

Legal Regulations

Supervising through Shareholder

Internal Regulations


Oct. 2005

Gesetzliche Regelungen realised on the following Levels

BVVG as capital company underlies

the regulations of the commercial code and other corresponding Laws

  • clear rules for the built up of the accounting system

  • controlling of the estate, finance and results through accounting firm

  • Obligation to publish annual balance sheet

  • Transparency

Oct. 2005

Steuerung und kontrolle durch den gesellschafter bzw den bund
Steuerung und Kontrolle realised on the following Levelsdurch den Gesellschafter bzw. den Bund

  • responsible Ministry (Shareholder)Budget, goal-agreements, monthly meetings, clear distribution of competencies

  • Parliament / German Federal Court of Auditors

    hearings, Petitions via responsible Ministries, finance control

  • Clients

    initiate revision through complaints, law suits

  • Interest groups and associationsinquiries, which get checked byresponsible governmental bodies

Oct. 2005

Interne Mechanismen realised on the following Levels

  • Clear supervision

    Guidelines, support

  • Four eyes principle

    Sales and lease procedure has to be checked by second employee

  • Rotation of staff

    change of assignments, Dept., clients

  • Technical guidance and control through Departments at headquarters

    Formulation of binding Privatization rules

Oct. 2005

Interne realised on the following LevelsMechanismen

  • Auditing and Reporting

    periodical analysis and reporting to management of organizational units, managing directors, Supervisory board and shareholder

  • Checking Contracts acceding a certain price volume or ha volume

    affirmation of managing director and responsible department necessary

  • Internal Revision

    independent board for control of internal regulations and cross checking of single cases

Oct. 2005

Relevance of the east german experience for other eastern european and central asian countries
Relevance of the East German Experience for other Eastern European and Central Asian Countries

  • Ownership structure and Agricultural structure in the starting situation are similar

  • The transformation process should be oriented at the European norms´. Transformation differs from country to country


    the problems that need to be solved are comparable !

  • The privatisation process has not ended yet

  • A sound land policy and a consistent legal frame are necessary for a successful privatisation process

Oct. 2005

Contribution of bvvg
Contribution of BVVG ... European and Central Asian Countries

  • Consulting in Land reform issues

  • Accompanying the privatization process for agricultural and forestry land

  • Development of the land market through laws, regulations valuation schemes

  • Forming and optimizing the state land management

Oct. 2005

Balance of bvvg 1992 2004
Balance of BVVG 1992 - 2004 European and Central Asian Countries

  • sold

    • 297.000 ha agricultural land

    • 434.000 ha forstry land

    • 42.000 ha building land

  • leased out

    • 706.000 ha agricultural land

  • transferred to Federal states without charge: 30.000 ha

  • Restituted 1.400.000 ha

  • transferred to the federal budget

    • ca. 2,3 Milliarden Euro

Oct. 2005

Oct. 2005

For further Contact: European and Central Asian Countries

BVVG German Agriforest Privatization Agency

Michael Rebholz


Personal Assistent of CEO of BVVG

Schönhauser Allee 120

D-10437 Berlin

fon: +49-(0)30-4432-1007

fax: +49-(0)30-4432-1200


Homepage of BVVG: http://

Oct. 2005