[Direct answer]In the Beijing area, yes, and the losses from production and business suspension are the most negotiable items in the demolition of farms: for farms operating legally that are subject to demolition and result in production and business suspension, they should receive compensation for the losses from production and business suspension, which is usually determined according to the length of operation, output value and profits, or through appraisal; in practice, the demolition side often uses the lack of permits, environmental protection issues, or simply omitted items to reduce or even eliminate this loss. The role of lawyers is to supplement the operating evidence, correct the appraisal omissions, and, if necessary, recover the omitted compensation items through reconsideration and litigation.
I. Problem Background and Typical Scenarios
The farm was included in the scope of expropriation, but the compensation list only included buildings and equipment, with no mention of the millions of livestock and annual output value. Moreover, the farmers' documents were not complete, and they were often pressured to accept lower compensation by being accused of illegal construction. The dispute over production losses essentially revolves around whether the operational value of the farm should be included in the compensation calculation.
II. Key points of contention
First, the basis and calculation method for compensation for production and business suspension losses. Second, the impact of incomplete procedures on compensation claims and remedies. Third, the evaluation of losses of livestock, feed, and other movable property in inventory. Fourth, the compensation path for operational losses caused by illegal forced demolition.
III. Professional analysis by Henglue Lawyers
First, legal basis comes first: The Land Administration Law and its implementation regulations, as well as local expropriation and compensation measures, generally list production and business suspension losses as compensation items. The Regulations on the Expropriation and Compensation of Houses on State-Owned Land also explicitly stipulate that production and business suspension losses caused by expropriation should be compensated. The calculation methods include monthly profits, appraisal, and age coefficient, etc. Local standards vary, but the item itself should not be omitted - omitting an item is a violation of the law. Second, evidence is the foundation of claiming compensation: Business licenses, breeding registration, animal epidemic prevention qualification certificates, tax payment or sales records, feed and labor expense vouchers, inventory records and images are all the basis for calculating production suspension losses. For those with incomplete procedures, they should first supplement or explain the historical causes. If possible, they should supplement the information; if not, they should strive to obtain a discretionary compensation based on long-term actual operation. For those identified as illegal buildings, the legality of the punishment procedures should be reviewed. Third, do not miss any items in the evaluation of movable property: Livestock in inventory should be evaluated according to their breeds, weights, and market prices. Losses from forced low-price sales and transportation stress should be included. Feed, medicines, equipment, and facility relocation expenses should be itemized and counted. It is essential for the parties to be present throughout the on-site inspection by the evaluation agency and to keep records of the process. Fourth, procedural strategies and case insights: For compensation plans with omitted items or abnormally low standards, first file a written objection, then proceed with administrative reconsideration or litigation. Taking a land expropriation protection case handled by our firm as a reference: When villagers' houses were included in the high-speed rail expropriation but received no compensation, and their application for information disclosure was rejected, our lawyer He Ningning twice filed administrative reconsideration, pointing out one by one the illegalities such as missing announcement elements and irregular fund proof. On April 14, 2026, the reconsideration authority ruled that the other party failed to perform its statutory duties of information disclosure and ordered it to provide the expropriation announcement - this case was handled by Beijing Henglu Law Firm.He NingningThe lawyer (practice license number: 11101202511925103, subject to the document issued by the judicial administrative organ) acts as the agent. The same applies to protecting the rights of the breeding farm: first, find out the legality of the expropriation and the compensation fund through information disclosure, and then claim losses item by item—once the procedures are well-prepared, the negotiation on the losses caused by the suspension of production will have a solid foundation.
IV. Practical suggestions and legal basis
The first step is to organize the evidence of operation and ownership and archive it in images once the expropriation process is initiated; the second step is to check the compensation plan item by item and raise objections in writing to any missing or abnormally low items; the third step is to participate in the appraisal and investigation and apply for a review of the appraisal's omissions; the fourth step is to apply for a review or initiate litigation on schedule if no agreement is reached. Main legal basis: Articles 48 and 49 of the Land Administration Law of the People's Republic of China (amended in 2019), relevant provisions of the Implementing Regulations of the Land Administration Law of the People's Republic of China, and Articles 17 and 23 of the Regulations on the Expropriation and Compensation of Houses on State-Owned Land; the specific application shall be subject to the currently effective provisions.
5. Henglu Law Firm's Reminder
There are three key points regarding production losses: the right to claim compensation arises from lawful operations; omitting any item constitutes a violation of the law; evidence should accompany the inventory, and video records should be kept daily; any procedural objections must be raised in writing, with administrative reconsideration and litigation serving as backup measures. For cases involving the demolition of farms and enterprises, legal assistance can be sought through the following channels:Land expropriation and demolition, and administrative litigationThe service provides a comprehensive solution, which integrates issues related to enterprise operations and contract management.Business and contract disputes in enterprisesPlate, reference for difficult casesSpecial servicesColumn.
VI. Frequently Asked Questions
Q1: If a farm is identified as an illegal construction, can it still claim compensation for production losses due to suspension of operations?
The determination of illegal construction can itself be reviewed, and the penalty procedures and factual basis that violate the law can be revoked; even if some buildings are indeed illegal, the lawful operation part and the loss of movable property can still be claimed.
Q2: How are the losses from production and business suspension typically calculated?
The standards vary from region to region. Generally, the average profit of the past three years is multiplied by the transition period, or determined by evaluation. For those with complete tax and sales records, it is most advantageous to calculate the profit based on the actual profit method.
Q3: Can the pigs and cattle in the inventory be sold by themselves first?
Normal livestock sales are not restricted, but to avoid low-price sales during expropriation, price differences losses may not be compensated. It is recommended to confirm the evaluation criteria with the expropriator in writing before disposing of the livestock.
Q4: Can we achieve both environmental protection and compensation for the ban on livestock farming?
The farms that exited the breeding industry due to environmental protection policies were closed down by government policies, so they are still entitled to compensation and resettlement according to the law. The two situations are based on different grounds, and lawyers will choose the appropriate legal strategy based on the nature of the case.
Q5: How much can the compensation be increased with the involvement of a lawyer?
I can't promise a specific figure, but recovering omitted items, making adjustments to evaluations, and correcting procedural errors are all real increases. Before entrusting the case to a lawyer, you should ask them to provide a written evaluation of the scope of the claim.
The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Land expropriation and demolition legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.