National Land Agency BPN - Republic of Indonesia (1995):
International Workshop on the Implementation of Rural Land Consolidation

10.3.2 Promotion and financing of land consolidation

The Federal Länder pay the costs of land consolidation administration (stuff and material).

The realization costs incurred through investments (road construction, construction of water bodies, landscape management) are jointly promoted by the Federal Government and Länder governments, in a cost sharing ratio of 60:40, within the framework of the so-called Joint Task "Improvement of Agricultural Structure and Coastal Protection". With the public promotion, the costs for the participating landowners are about 20-30% of the investment costs. As a rule, they pay their share in the form of annual payments on long-term loans. The volume of such payments is based on economic strength, which is separately determined for each land consolidation area.

In addition, the farmers have to contribute around 3 to 5% of their areas for joint matters (paths, bodies of water).

In the former East Germany the participants have special conditions. Their financial contribution is less than 20%, in average about 10%.

The annual investment volume for agristructure, infrastructure and ecological development measures amounts to approx. DM 850 million ($580 million), of which some two-thirds are being paid for through public promotion. Added to this are the land consolidation projects that have been initiated in the new Federal Länder since unification, most of which have not yet reached the cost-intensive construction phase.

Fig. 4: Present situation of land consolidation procedures in Germany
(This figure is only included in the hardcopy of this document.)

The importance of land consolidation within German agristructure policy is illustrated by the following figures:

In the western Federal Länder, a total of some 9 million hectares were reorganized through land consolidation between 1945 and 1990. In the western Federal Länder alone, a total of some 4,000 land consolidation measures are being carried out, on a total of some 3,5 million hectares.