This social security system is financed by contributions paid by farmers (about DM4 billion in 1995) and by federal funds (about DM 7 billion in 1995). Measures such as provision of pensions to farmers who give up their holdings and promotion of cessation of gainful farming activity, both of which serve to cushion the social repercussions of structural change, are financed wholly by the Federation. Upon the establishment of monetary, economic and social union in 1990, the accident and health insurance scheme in effect for the agricultural sector in the old federal states was introduced in the new federal states. Since 1 January 1995, the entire body of social insurance law for the agricultural sector has been uniformly in effect throughout the whole of Germany.

The Federal Ministry of Food, Agriculture and Forestry spends nearly DM 500 million each year on agricultural research. This research focuses on the study of agricultural, forest and marine ecosystems and resources, promotion of high-quality and environmentally compatible agricultural production, improvement of food quality, further developments in the utilization of biologically generated raw materials, and socio-economic issues.