Legal Status of a Farmer
A farmer is a natural person who, alone or with partners, engages in agricultural and forestry activities, and whose farm is registered in the Farmers’ Farm Register (in Lithuania).
A person acquires the status of a farmer upon registration of the farm in the Farmers’ Farm Register. This status is lost once the farm is removed from the register. The farmer must have at least one account in a bank or credit institution registered in the Republic of Lithuania.
Farmer and Partners
A farmer and their partners may carry out agricultural, forestry, or other legally permitted activities without establishing a company. The farmer may use land and/or forest land and/or water bodies owned or legally possessed (e.g., through lease, loan-for-use, or other legal basis) for agricultural activity.
The farmer or their partners must have the professional qualifications to farm as determined by a government-authorized institution in Lithuania.
Farmers conclude employment contracts with hired individuals in accordance with the applicable laws. However, no employment contracts are concluded with the registered partners or assistants noted in the Farmers’ Farm Register.
A farm is deregistered from the Farmers’ Farm Register in the following cases:
- At the request of the farmer;
- Upon the farmer’s death, if there are no heirs and the activity is not continued;
- By court decision.
Summary
Farmers and their partners whose income from agricultural activity constitutes at least 50% of their total annual income are subject to preferential tax rates established by law. The Government of the Republic of Lithuania provides support to young farmers (under 40 years old) for business establishment and skill development.