Farmers, which structure for your objectives?

The september 01, 2020

The agricultural sector is now faced with multiple issues that it is necessary to dwell on in a still uncertain economic context. Indeed, land management, farm transfer and cost optimization are increasingly pressing concerns. There are different structures that can meet these objectives.

CSAE or AHG? Wealth A7 enlightens you!

The purpose of the CSAE (civil society of agricultural exploitation) is the management of agricultural land, forests, and built and unbuilt land.

It has the advantage of being able to be made up of farmers and / or non-farmers. Therefore, it is not mandatory to have an operating partner within it.

It provides complete freedom in its operation since the operating area is not limited and you have no limit as to the number of partners.

You can set up a CSAE with people on your farm as well as with members of your family. Indeed, setting up the company to anticipate the transfer of your operation is possible since no participation in the work is required.

EU subsidies aid can be received by the CSAE by transferring the farm manager to the company. Be careful if you have ICHN grants because their eligibility is linked to the income of the farmer, they can only be paid in the presence of a farmer.

If your main objective is to reduce your costs, especially in the purchase of agricultural equipment, the AHG (agricultural holding group) is made for you. This is a fantastic way to consolidate your means of production into this unique structure without having any relationship of subordination with other operators.

Its principle is to be transparent, which leads to a total lack of legal personality for the group and which allows each partner to be considered as the manager. Therefore, no partner can be non-operator and participation in the work of the operation is compulsory.

Transparency has the advantage of allowing each partner to receive EU aids. The aid is calculated on the basis of the shareholding percentage of the partner.

For example: You are in a AHG made up of three partners and comprising 200 hectares, with a share capital distribution of 50% / 40% and 10%.

The calculation will be made in proportion to each person's shares over the number of hectares. Please note, aid is allocated up to 52 hectares per partner. Thus, on the 200 hectares, you will be able to benefit from the redistributive payment on 124 hectares.

However, be careful since the constitution of the group is conditional on obtaining approval by the Departmental Committee and a share capital of at least € 1,500.

These two structures can bring you advantages according to your profile and your needs, but they will require an in-depth study.

You or one of your relatives works in the agricultural sector, know that it is possible to benefit from asset optimization schemes. Specialist in the agricultural field, Weatlh A7 will support you in your project. If you want to benefit from enlightened and personalized advice, contact us!

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Article by : CAMILLE LESPRILLIER

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