(2024) What are contributions to agricultural pension funds?

Farmers pay contributions to agricultural pension funds for themselves, their spouse, and possibly for family members working on the farm. These funds are part of the agricultural social security system and allow farmers to build up a funded pension scheme, similar to the statutory pension insurance for employees.

The amount of the contributions is usually based on the economic performance of the agricultural business. Employees can also declare contributions to agricultural pension funds and voluntary statutory pension insurance in their tax return. Any subsidies received must be deducted from the amounts paid in to avoid double benefits.

In 2024, pension contributions of up to 27,566 Euro for single persons and 55,132 Euro for married couples can be claimed as special expenses for tax purposes. These contributions are 100% tax-deductible and fully reduce the taxable income.

Important: Contributions to the agricultural pension fund differ from other pension schemes such as the Riester pension or statutory pension insurance, as they are specifically set up for agricultural businesses.