It concerned here, contrary to the agricultural production cooperative (LPG) agricultural state enterprises, which had often developed from former private agricultural goods as result of the land reform decided in the Potsdamer agreement 1945. Each VEG was merged directly into the national economic planning. They were either central or the district subordinated. A state owned property was national property and agricultural counterpart to the state owned enterprise- Volkseigener Betrieb. They were led according to the principle of individual direction by a director. Compared with the LPG those did not hold employed agricultural worker portions of the enterprise there.
In 1960 the VEG managed approx. 6.3% of the agricultural effective area of the GDR for approximately 690 VEG. In the course of the general concentration and specialization in the agrarian nature their number sank however until 1980 on 385 pieces. VEG's were more developed than the cooperative farms. They had better machinery and more Capital was invested in them than the These were united however at the same time to larger units, so that their total number of 511 was reduced in the year 1970 to 465 in the year 1985, while of the VEG managed agricultural effective area with approximately 4,400 km² remained almost constant. The VEG came compared with the LPG often a better supply too, since they functioned as so-called bases of the preferential working class in the country. They should in particular prove in the 1950's and 1960's years the superiority of the “socialist production way” and also later take a progressive function.
After the reunification in 1990 the fortune of the VEG of the administration was transferred by the trust establishment.