Decision on the Qualification of an Agricultural Business as a Commercial Enterprise

Facts

The appellant [B.A.] and his brother [E.A.] jointly acquired the agricultural business [U.] in 1999. They partially leased the properties to their parents and partially to external tenants, without obtaining the required authorization under the Federal Act on Agricultural Leases (LPG). In 2011, [B.A.] applied to the competent authority for a determination that the business [U.] does not constitute an agricultural commercial enterprise within the meaning of the Federal Act on the Protection of the Agricultural Land (BGBB). However, the authority and the lower instance found that the business should continue to be classified as an agricultural commercial enterprise, as the requirements for the application of Art. 8 lit. a BGBB were not met. [B.A.] appealed against this decision to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the appeal. It stated that for the applicability of Art. 8 lit. a BGBB, it is required that the business concerned is lawfully, i.e., with the necessary authorization under Art. 30 et seq. LPG, leased in whole or in part by parcels. This requirement was not met in the present case, as the lease agreements…