Agriculture is an important economic sector in the business region of the East German Savings Banks Association (OSV). Unlike in the western federal states, where there are many small family farms, large farms dominate in the east – often with several thousand hectares of land. This is a legacy from the GDR era with its large agricultural production cooperatives (LPGs). After reunification, many of these collectivist structures were dissolved and converted into corporations and partnerships such as agricultural cooperatives, limited liability companies (GmbHs), limited liability partnerships (GmbH & Co. KGs) or private enterprises.
The large farm structures in particular enable greater specialisation, mechanisation and professionalisation of processes. This goes hand in hand with an increased need for capital and credit, whether for investments in land, technology or renewable energies. Especially as costs have risen massively, and not only in these areas. This makes the 43 member institutions of the OSV much sought-after partners for financing and advice.
Agriculture in eastern Germany is extensive, modern and plays a key role nationwide in food security, sustainability and renewable energy. The East German Savings Banks Association (OSV) has adapted to the requirements of this special clientele. This is also reflected in selected figures.
43
Association Savings Banks of the OSV
EUR 746 million
agricultural loan portfolio
≈ 6 million ha
of farmed agricultural land
> 120.000
people working in agriculture
≈ 60 ha
average farm size in western Germany
> 18.500
employees in the OSV Savings Banks
> 250 ha
average farm size in the business area of the East German Savings Banks Association (OSV)
≈ 21.000
agricultural businesses
In the rural areas of the four federal states of Brandenburg, Mecklenburg-Western Pomerania, Saxony and Saxony-Anhalt, the Savings Banks’ experts serve around 21,000 agricultural businesses with more than 120,000 employees. Together, they represent a significant economic force, whose further development the OSV Savings Banks are keen to actively support. Over the past ten years, they have more than doubled the volume of loans in this market segment. The OSV also offers targeted advisory services. The annual agricultural convention organised by the Association with renowned speakers and practical workshops, as well as the training courses offered by the North-East German Savings Banks Academy (NOSA) are particularly noteworthy.
The total volume of agricultural loans granted in 2024 remained stable at EUR 746 million. The funds are invested in new marketing strategies, drones and digitalisation, as well as in nature conservation, biogas plants, solar and wind farms. All with the aim of ensuring that agricultural businesses in the OSV’s business area continue to make a disproportionately large contribution to Germany’s agricultural production and thus to the supply of high-quality food, despite the low population density. In the current uncertain times, it is becoming increasingly important to be as independent as possible from imported goods. Moreover, regionally produced and purchased food is more sustainable.
The two examples of cooperation illustrate how the collaboration between OSV Savings Banks and agricultural businesses works in practice.
OSV active for agriculture:
Head of the Agriculture Working Group:
- Participants include Savings Banks that are particularly active in the agricultural sector, selected partners and representatives of the Landesbanken
- Annual meetings (usually held at trade fairs)
- Representatives of state farmers’ associations are also invited
- Visits to trade fairs (Green Week, agra, BraLa, MeLa)
Focus of the Agricultural Convention:
- Annual information event with 250 to 300 guests from politics, agriculture and the Savings Banks Finance Group
- Specialist presentations and workshops covering the entire value chain of agricultural products
- Platform for exchange and networking, especially between farmers
Training courses offered by the North-East German Savings Banks Academy (NOSA):
- Annual exchange of experiences in agriculture
– Practical reports from Savings Banks for Savings Banks - Specialist conference on agricultural business
– Exchange on current topics and specialist presentations from the agricultural sector