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Farm Management Agreement for Germany

Farm Management Agreement Template for Germany

A Farm Management Agreement under German law is a comprehensive legal document that establishes the relationship between a farm owner and a professional farm manager or management company. The agreement outlines the scope of management services, operational responsibilities, decision-making authority, and financial arrangements while ensuring compliance with German agricultural regulations and EU Common Agricultural Policy requirements. It includes detailed provisions for farm operations, reporting requirements, risk allocation, and dispute resolution mechanisms, all structured within the framework of German civil and agricultural law.

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What is a Farm Management Agreement?

The Farm Management Agreement is essential for agricultural operations in Germany where professional management services are required for farm operations. This document is typically used when farm owners seek to delegate day-to-day management responsibilities to professional managers or management companies while retaining ownership rights. The agreement must comply with German agricultural law, the Civil Code (BGB), and relevant EU regulations. It covers crucial aspects such as operational decision-making, financial management, regulatory compliance, and reporting requirements. The Farm Management Agreement is particularly relevant for large-scale agricultural operations, absentee owners, or situations where specialized expertise is needed for optimal farm performance. It provides a clear framework for professional farm management while protecting the interests of both the owner and the manager under German jurisdiction.

What sections should be included in a Farm Management Agreement?

1. Parties: Identification of the farm owner and the management company/manager

2. Background: Context of the agreement, description of the farm and purpose of the management arrangement

3. Definitions: Key terms used throughout the agreement including Farm, Services, Management Fee, etc.

4. Scope of Services: Detailed description of management services to be provided

5. Manager's Obligations: Core responsibilities and duties of the manager including compliance requirements

6. Farm Owner's Obligations: Responsibilities of the farm owner including provision of access and information

7. Decision-Making Authority: Limits of manager's authority and matters requiring owner approval

8. Financial Arrangements: Management fees, payment terms, expense handling, and budgeting requirements

9. Reporting and Records: Required reports, record-keeping obligations, and reporting frequencies

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Term and Termination: Duration of agreement and termination provisions

12. Dispute Resolution: Procedures for handling disputes under German law

13. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Farm Management Agreement?

1. Employee Management: Required when the manager will be responsible for farm employees

2. Livestock Management: Required when the farm includes livestock operations

3. Organic Farming Provisions: Required for organic farms or farms transitioning to organic

4. Marketing and Sales: Required when manager is responsible for direct marketing of farm products

5. Sustainability Practices: Optional section for specific environmental commitments

6. EU Subsidy Management: Required when manager is responsible for handling EU agricultural subsidies

7. Equipment Management: Required when significant farm equipment is involved

8. Crop Planning: Optional detailed section on crop rotation and planning responsibilities

What schedules should be included in a Farm Management Agreement?

1. Farm Description: Detailed description of the farm including maps, field lists, and infrastructure

2. Service Specification: Detailed breakdown of management services and performance standards

3. Fee Schedule: Detailed breakdown of management fees and payment structure

4. Operating Budget: Initial operating budget and budget planning requirements

5. Equipment Inventory: List of farm equipment covered by the agreement

6. Reporting Templates: Standard forms and templates for required reports

7. Key Performance Indicators: Specific metrics for measuring management performance

8. Contact Protocol: Communication procedures and emergency contact information

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Cost

Free to use

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