[Direct answer]In the Beijing area, if legally operated farms are shut down due to policies such as the designation of no-breeding zones, environmental protection rectification, and public health, they should be compensated according to law. The scope of compensation includes fixed asset investments (the depreciated value of pens and pollution control facilities), livestock loss, production and business suspension losses, and relocation and resettlement expenses. The practice of simply dismissing cases on the grounds of "no license" or "illegal construction" is not viable in judicial practice. In recent years, in public judgments, it is not uncommon for courts to support farmers' requests for compensation for the shutdown of farms and award compensation ranging from hundreds of thousands to millions of yuan. The process typically involves three steps: applying for enforcement, appealing, and litigating.

1. Problem background and typical scenarios

Environmental remediation and the designation of prohibited breeding areas have been implemented one after another. Farms that have been in operation for many years were shut down without notice. The compensation department simply said, "There is no breeding registration" and "The land used for farming facilities is not considered a legal building," completely evading their responsibility for compensation. What breeders face is not a legal issue of "whether to compensate" — the legal answer is clear — but an operational problem of "how to prove it, who to ask for compensation from, and what procedures to follow."

II. Key points of contention

First, the legal basis for the right to request compensation for closure. Second, the calculation of the scope of compensation. Third, how to overcome the defense of "unlicensed" and "illegal construction". Fourth, the procedural path and evidence organization.

III. Professional analysis by Henglue Law Firm

The first layer: The basis of the right to request compensation is clear. Article 8 of the Administrative Licensing Law stipulates that if laws and regulations are amended or there are major changes in objective circumstances, and it is necessary for the public interest to revoke an administrative license that has already taken effect, the citizens and legal persons who suffer property losses shall be compensated according to law; the Regulations on the Prevention and Control of Pollution from Large-Scale Livestock and Poultry Breeding further clarify that if it is necessary to close or relocate existing breeding sites due to the delineation of prohibited breeding areas, and the breeders suffer economic losses, the local governments at or above the county level shall compensate them according to law – the obligation to compensate for policy-induced closures is directly written into the provisions, rather than a discretionary favor. The second layer: The scope and calculation of compensation: fixed assets such as pens, water and electricity facilities, and epidemic prevention and pollution control facilities are calculated based on the assessed depreciated value; the livestock and poultry in the pens are calculated based on the relocation costs or the market disposal price difference; the losses of production and business suspension are referenced to the operating income and the suspension period; and the relocation and temporary resettlement expenses shall be claimed with invoices – the assessment report is the core battlefield. For any omission in the assessment scope (missed facilities or undervalued livestock), the parties concerned shall raise objections item by item within the objection period. The third layer: Resolving the defense of "unlicensed" and "illegal construction": the absence of filing or property rights certificates does not equal illegal construction – for those built during the period when the filing system was absent due to historical reasons, or those long recognized by administrative authorities (tax records, subsidy payments, environmental inspections, and quarantine records), the legitimate expectations should be protected. The Supreme Court has already clarified that compensation eligibility cannot be denied solely on the basis of the lack of certificates in cases involving the closure of prohibited breeding areas. Even for those confirmed as illegal construction, the construction timepoint, the degree of violation, and the fault should be distinguished. A one-size-fits-all zero compensation would also fail to pass judicial review. The fourth layer: Procedural path: First, apply for the performance of compensation duties. If the government refuses or delays, initiate administrative reconsideration or administrative litigation to request confirmation of the illegality of the closure and order compensation; simultaneously apply for government information disclosure to lock in the basis for the closure and the approval documents, and raise objections to the assessment item by item – the four core groups of evidence are the proof of operating investments, tax and subsidy records, closure notifications, and inventory of livestock. If the livestock are not inventoried before the closure, the burden of proof shall be shifted to the administrative authorities according to law.

IV. Practical suggestions and legal basis

The first step is to fix the investment and operating evidence (receipts, tax payments, subsidies, and quarantine certificates); the second step is to apply for information disclosure to determine the basis for closure; the third step is to apply for post-compliance review and litigation, and simultaneously raise objections for evaluation; the fourth step is to connect compensation and compensation, and list the losses item by item. The main legal basis includes Article 8 of the "Administrative Licensing Law of the People's Republic of China", Article 25 of the "Regulations on Pollution Prevention and Control of Large-scale Livestock and Poultry Breeding", and relevant provisions of the "State Compensation Law of the People's Republic of China"; the specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

Three key points regarding the closure of livestock farms: The obligation to provide compensation for policy-based closures is stipulated in legal provisions, and the absence of a license does not equate to no compensation; Compensation is calculated based on four accounts—facilities, livestock inventory, production suspension, and relocation; Evaluation disputes should be raised item by item; First fulfill obligations, then seek administrative review and litigation; The basis for closure and proof of investment are the two main lines of evidence. This case was handled by Beijing Henglu Law FirmHe NingningThe attorney (practice license number: 11101202511925103, subject to the document issued by the judicial administrative organ) acts as the agent. For matters involving the closure of farms and compensation for expropriation, you can contact us through the following channels:Land expropriation and demolition, and administrative litigationThe service obtains an overall solution, and those involving the rights and interests of the business entities can be integrated togetherBusiness and contract disputes in enterprisesFor plates, you can refer to the relevant information on the recognition of housing property rights for referenceReal estate transactions and construction projectsFor any questions regarding difficult situations, you can seek advice from the columnSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Is there compensation for farms that are shut down in the prohibited breeding areas?

For legally operated farms that are shut down due to the designation of prohibited breeding areas or environmental protection policies, they should be compensated according to law. This is a legal obligation, not a discretionary arrangement.

Q2: What items are included in the compensation?

The four main categories include the depreciated value of fixed assets, losses of livestock and poultry in inventory, losses from production and business suspension, and relocation and temporary resettlement costs. Each item should be evaluated and claimed separately.

Q3: Will compensation not be granted if there is no breeding registration certificate?

No, of course not. If the business has not been registered due to historical reasons and has been recognized by the administrative authorities for a long time, the legitimate expectations of the business owner are protected by law, and the compensation eligibility should not be denied solely on the grounds of the lack of a business license.

Q4: What should I do first when I receive a notice of closure?

Output: Fixed investments and operating evidence, application for information disclosure to determine the basis for shutdown, and reviewing the evaluation report item by item during the objection period.

Q5: What should I do if we can't reach an agreement on compensation?

After applying for the performance of compensation duties, if a party initiates a review or litigation to request confirmation of the illegality and an order for compensation, the appraisal objections and litigation procedures will proceed in parallel.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

VII. Relevant public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media outlets, and are not related to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.

[Case Number](2024) Qingxing Zhong 7th Edition
[Trial Court]The Higher People's Court of Qinghai Province (First Instance: Xining Intermediate People's Court)
[Judicial Summary]A legally operated ranch was ordered by the government to close and relocate due to the designation of a no-grazing zone, but the government failed to provide substantial compensation for a long time. After multiple rounds of litigation, the first-instance court ruled that the government should compensate 2.9074 million yuan. However, the Qinghai Provincial High Court held that the evaluation results should fully reflect the value of buildings, structures, and machinery, and ruled that the compensation should be increased to 5.0549 million yuan, an increase of more than 2.14 million yuan. Key points: Article 25 of the "Regulations on the Prevention and Control of Pollution from Large-Scale Livestock and Poultry Breeding" stipulates that if a breeding farm is closed due to the designation of a no-grazing zone and suffers economic losses, the county-level or higher government shall provide compensation in accordance with the law; the closure of the no-grazing zone does not mean it is closed for nothing.
[Source]Shanghai Securities News (announcement disclosure of Zhuangyuan Ranch Company) and Practical Articles on Administrative Law (2024-04)

[Case No.]The case number has not been made public.
[Trial Court]Hanjiang Intermediate People's Court of Hubei Province
[Judicial Summary]A seventy-year-old man named Zhou * used the idle land next to his residential plot to operate a breeding farm. In 2023, the town government demolished his breeding facilities on the grounds of project construction needs, and the first-instance judgment confirmed that the demolition was illegal. After applying for administrative compensation, the elderly man sued for more than 1 million yuan in compensation, and the first-instance court partially supported his claim based on the appraisal results. In the second instance, the court pointed out that the breeding income belonged to anticipated interests and was not within the scope of compensation. After dozens of mediation attempts, the town government finally paid a one-time compensation of 155,000 yuan for the buildings and indoor items and was ordered to complete the compensation within a specified timeframe.
[Source]The article "Hanjiang River, Hubei Province: The 70-year-old Elderly Man's Journey to Protect His Rights" was published on the China Court Network on August 20, 2025.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit. →Land expropriation and demolition legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.