The government is working on a law regulating the turnover of agricultural land. The new rules are to protect Polish land before redemption by foreign investors.
According to preliminary plans, agricultural land will be able to acquire only the farmer, who already have no more than 300 hectares and operating in the territory of the municipality for at least five years.
the end of the protection period for Polish
already on May 1 ends a 12-year protection period for the purchase of Polish land by foreigners. To prevent speculation and massive buyout of land, the Ministry of Agriculture is preparing amendments to the provisions. He wishes to turn the land strict control. Only the farmer will be able to buy agricultural land.
– Change of both the Act on the agricultural system, as well as other laws, provides for reduction of redemption, the sale of land from the Resources of the Agricultural Property of the Treasury, or the land, which the Agricultural Property Agency. Preferred will lease the land. On the other hand, the amendment reduces not only the rotation of the earth which is in the possession of the Agency, but also rotation between farmers. And here also increase supervision of the state in this regard. More power gets ANR – explains guest Ones: Monika Orłowska of BGZ BNP Paribas.
In addition, introduces a definition of family farm, and farmers will have the greatest rights and opportunities to purchase agricultural land. Limited to these preferences to 300 ha of agricultural land. The buyers can be not only farmers, but also individuals with agricultural skills. They can be either agricultural education or work on a farm or in the company of agricultural and inhabited for at least five years in the community, where he is one of their properties, they also lead to the farm in person.
Limited rotation of the earth from May 1
the new rules are a big change to what we have now. Currently, we have a free trade agricultural land. Since May 1, this situation is likely to change.
– It is said that the reason for restrictions in trade underground is protection of foreigners buying land. In the West, in some countries, per hectare of agricultural land is 2-3 times cheaper than in Poland. But there are also countries where per hectare pay several times more than in Poland. Of course, the average in Western Europe earth is clearly more expensive. And theoretically, farmers in these countries could after 1 May 2016. Buy land from us – explains the guest Polish Radio 24: Bartosz Turek with Lion’s Bank.
In contrast to the day that Poland had agreed in the Accession Treaty, European Union citizens can not buy in a free land in Poland.
Without the protection earth zdrożeje?
Limit free circulation of agricultural land have a big impact on the situation on the agricultural market. Farmers, though not only, they began to expect that after the opening of the market price of land will rise strongly.
– Therefore, those who thought about selling, they preferred to wait some time to sell more expensive. And those who want to buy, they knew that soon will be even more expensive, so they wanted to make the transaction as soon as possible. And it meant that land prices in Poland grew very quickly. On average, each year by 17 percent. In late 2004 the price was approx. 6 thousand. zł per hectare, and now it costs about 1 ha. 36 thousand. zł. So the price of agricultural property increased almost six-fold – emphasizes Bartosz Turek.
Of course, these prices do not would grow constantly. In the end, the adjustment would come on the market. Because farmers would start to wonder if the issuance of more money for the land makes economic sense if it pays off, because productivity is not growing as fast as the prices.
– why speculation on the market could lead to a crash. Hence the calming of the market was undoubtedly needed. But if so drastic methods, such as those proposed by the government? – Says a guest of the Polish Radio 24.
Prices for Polish agricultural land
What are the forecasts for prices “liberated” of agricultural land? Predictions are different. According to Monica Orłowska, falling prices, of course, can not be ruled out.
– Even in this respect, that the demand will be significantly limited. Also, the same preference when buying land by individual farmers up to 300 ha indicates that the large farm holdings, which have the largest funds to invest – will now be excluded from this market. Which would impact on the level of prices on the decline – notes expert.
Data from the new EU member states, which in 2014 released the land market, but imposed additional restrictions indicate that only in Lithuania appeared to fall prices. In other countries – not yet.
Currently, the most expensive agricultural land are in the province. Wielkopolska and Kujawsko-Pomorskie, the price is approx. 50 thousand. zł / ha. The cheapest is in the province. Świętokrzyskie and Podkarpackie – about 20 thousand. zł / ha.
The buyer and seller, that is changing and demand, and sales
New, which is still under discussion, the law introduces restrictions on both the On the supply side and demand side. Larger, of course, on the supply side, where he was active ANR, where the sale of land at the disposal of the Agency, it was a lot. The supply can here be reduced significantly.
– However, the larger the scale of the restrictions will affect demand, and it’s all over Polish. Both where the Agricultural Property Agency was active and where it was not. However, since the farmer will be relevant to local preferences. Where are predominant oriented farms, where interest in the land market is very large, we expect that this demand will not expire and will continue to be large. And farmers will still be interested in acquiring the land. Of course, if you are holding more than 300 ha, this opportunity will be the greatly reduced because the farm you can grow only to 300 ha – emphasizes guest radio Ones.
At the same time the law does not favor the division of large land and reselling . It is assumed that in such a case it will be possible repurchase of these lands by the ANR and can be a lease.
He adds Monika Orłowska: – When the lease also are preferred farmers, family farms 300 hectares. Affected by the both turnover private and lands that farmers purchased from the ANR in previous years – says an expert.
Who needs agricultural land?
earth need eg. the developers who are building warehouses, mainly around the cities.
– the problem however lies in the fact that usually there is no local plans for areas of the municipality and there is no local law that regulates what and where You do what ultimately will be the destiny of the plot. And because of this, how to use the earth – officials decide by issuing administrative decisions, so-called. building conditions. It often happened that an investor buying agricultural land and try to spend the zoning decision, allowing eg. For housing development. And then rapidly grew the value of that parcel, and the investor could sell it with considerable profit – says Bartosz Turek.
The new law will prevent such dealings. Because turnover agricultural land, even with zoning, will continue to trade in agricultural land.
– So the buyer can only be a farmer. Unless someone is authorized by the President of the Agricultural Property Agency. A condition for obtaining it will be, among others, to ensure that the buyer will be lived in the community for five years and that will be a good farmer – adds a guest of the Polish Radio 24.
Only the existing local plan may allow the purchase of agricultural land by a person who is not a farmer. In contrast, the farmer may apply for reassignment of land owned by him that was odrolniona. The municipality can also change the destiny of the land. Then developers will be able to start investing.
Do not ownership, and leasing. And what about inheritance?
The basic form of management of land resources Agricultural Property Agency has, however, be holding a minimum of 10 years. Farmers praise this solution as giving assurance of use.
– Long-term lease surely allows for better planning of production, from the cost and revenue. Of course, all that long, is probably a better option than, for example. Short-term land management – emphasizes guest Ones.
However, the farmers are more afraid of other threads in connection with the proposed amendments, and on even the rules of inheritance of the earth.
– a farmer is firmly attached to the ground, often for many generations. And for him the popular “fight for two fingers between” is still valid. Therefore we can not this law deprive farmers the right of inheritance for their children, heirs. And also the possibility to dispose of the land by its owner, who is a farmer – says Victor Neumann, president of the National Council of Agricultural Chambers.
The Ministry of Agriculture denies that such changes would be. Inheritance is still be possible.
– The Act provides for the possibility and the right of first refusal for the tenant, the owner of the property bordering the ANR. However, do not apply this right of first refusal to a person close to the holder of an agricultural property, agricultural land. Therefore, inheritance will not be limited – emphasizes Monika Orłowska.
Control of land transactions almost across the EU
In most European Union countries such restrictions in the course of agricultural land, which is an increasingly scarce commodity, occur. Both so-called. the old Member States as well as in the new. Including those that joined the EU in parallel with the Polish. This includes Lithuania, Latvia, Hungary.
– all these countries already in 2014 freed the land market for foreigners, while introducing additional restrictions on trading in the ground. And they relate to both foreigners and citizens of those countries – notes guest Ones.
Also in France, where land prices are about half those in Poland and Spain, are also restrictions. Similarly in Hungary.
– France has a special agency that has the right to interfere in the transactions. Both in terms of price and buyers. So the price of land may be lower if eg. The rotation is controlled – notes Bartosz Turek.
Currently, the land belonging to the Treasury is about one and a half million hectares, of which one million is leased. Changes in the course of the earth have come into force on 1 May 2016.
Sylwia Zadrożna, Grazyna Raszkowska, Kamil Piechowski, Margaret Byrska
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