What are execution cost drivers

Land consolidation costs

Execution costs: the “expenses required to carry out the land consolidation are borne by the community of participants” (Section 105 Land Law).

Specifically, this means for the participants in the procedure that the costs incurred in order to create the communal facilities (e.g. the new paths, the plantings or measures on water bodies) must be borne by the participants. Most of these costs, however, are borne by the state Funding covered.

In the Free State of Saxony, the implementation costs of land consolidation are funded in accordance with the Rural Development Directive (RL LE / 2014). The is Funding rate between 65 and a maximum of 90% of the eligible costs. 60% of the funds are provided by the federal government and 40% by the Free State from the joint federal and state joint task “Promotion of the Agricultural Structure and Coastal Protection” (GAK).

Before the start of the procedure, the participants will be informed of the likely costs of the procedure. The costs are usually given as x € per hectare of agricultural area.

It is common for the Contributions, which each participant has to pay, will be collected over the entire duration of the procedure. Since they are based on the value of the new land, advances are levied during the procedure on the basis of the old land and offset against the final contributions at the end of the procedure.

Often, parts of the contributions are also taken over by third parties (e.g. by the municipality or by farms) for the benefit of the other participants.