Facts
The Federal Department of Economic Affairs appealed against a judgment of the Federal Administrative Court that had awarded X. and Y. the claim to direct payments in agriculture for the year 2006. X. and Y. continued to operate the agricultural business A. after the expiration of the lease agreement on 31 March 2006 without legal entitlement. The Federal Supreme Court upheld the appeal of the Department and decided that X. and Y. had no claim to direct payments, as they lacked the necessary legal independence to operate the business.Considerations
The Federal Supreme Court stated that for the receipt of direct payments in agriculture, not only the actual but also the legal circumstances must be taken into account. While the direct payments are primarily intended to promote environmentally and animal-friendly production methods, they also serve to secure the income of farmers. It would be contrary to the legal order to support violations of private law obligations through state subsidies.
The Federal Supreme Court concluded that X. and Y. no longer had a valid legal entitlement to operate the business A. on…