DANISH AGRICULTURE (7)

Danish agriculture may be a powerhouse, particularly in pig farming, but it is still covered by the thicket of rules that Danish society likes to put over everything. One rule was that only a qualified farmer could live in a farmhouse and work the land. Originally designed to prevent absentee landlords, it hampered development, since it was very difficult to get access to outside capital (either domestic or foreign). The farm had to be owned by a company, which could then issue shares to outside investors. However, there still had to be a resident farmer, and the farmer had to have a decisive voice in the running of the company. Outside investors were necessarily limited to being minority ones.

The last government realised that this was hampering development, and relaxed the rules. The new ones, which came into force on 1 January, retain the requirement for a farmer to live in the farmhouse. However, the farmer doesn't have to be the main owner; indeed, he doesn't have to own any of the farm at all, he can simply rent both the house and the land from an external investor, domestic or foreign.

Rich people from Holland, the rest of Scandinavia and Eastern Europe are already beginning to pile in. Although only six months old, the new rules are already leading to warnings of unfair competition that is making life difficult for young farmers to get on the ownership ladder. It is quite possible that there could be a backlash in future.

Walter Blotscher