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Dr.

Andrzej Zadura
Agricultural Property Agency - Poland
ELO - Conference Series 2003/2004
Brussels, November 6-7, 2003
CAP Reform: Entrepreneurial Opportunities in the
Enlarged EU
How could Enlargement Influence the European Land
Market?
Agricultural Area
million hectares (ha) in 2002

Poland 18.4
Hungary 5.9
Czech Republic 4.3
Lithuania 3.5
Latvia 2.5
Slovakia 2.4
Estonia 1.0
Slovenia 0.5
Cyprus 0.1
total CC - 9 38.6
Agricultural Area
million hectares (ha) in 2002

total EU-15 130.4


France 29.9
Spain 25.4
Germany 17.1
UK 15.7
Greece 3.9
Portugal 3.9
Source: EU Commission
Poland - Agricultural Area by Users
and Land Types in 2001
(1 000 ha)
Agricultural land area
Total 18 392
of which: individual farms 15 550
Agricultural land area (total) 18 392
of which : arable land 14 046
orchards 268
meadows & pastures 1 739
Source: Poland - Central Statistical Office
Number of private holdings

Poland - Year in thousand


1990 2 138*
1995 2 048*
2000 1 881*
EU -15 (2000) 6 776
Italy 2 152
Spain 1 287
Greece 814
Germany 472
Portugal 416
Source: Poland - Central Statistical Office, EU -15 - European Commission.
* excluded private agricultural plots of up to 1 hectare of agricultural land.
Poland - Private Holdings by Area Groups in 2001

in percent

Poland - total 100


of which: 1.01 - 1.99 ha 23
2.00 - 4.99 34
5.00 - 9.99 24
10.00 – 14. 99 10
15.00 and more 9
Source: Central Statistical Office.
Average size of holdings (ha of agricultural land)
in 2000
Poland 7.2
EU-15 18.7
UK 67.7
France 42.0
Germany 36.3
Portugal 9.3
Italy 6.1
Greece 4.4
Source: Poland -Central Statistical Office, EU-15 European Commission.
Employed in Agriculture, Fishing and Forestry
in 2000
(1 000)

Poland 2 727
Lithuania 298
Hungary 252
Czech Republic 237
Slovakia 140
Latvia 131
Slovenia 89
Estonia 45
Cyprus 15
Malta 3
total CC-10 3 937
total EU -15 6 790
Italy 1 120
Spain 989
Germany 988
France 971
Greece 671
Portugal 616
Source: Polish Central Statistical Office

Polish State Farms (beginning of 90-ties)


Agricultural land
- public sector, million ha 3.7
- number of state farms 1 666
- average area of state farm (ha) 2 500
- state farm workers 470 000
Agricultural Property Agency (APA)

• formation of land system (structure of farms);


• restructuring the agricultural State Treasury property;
• sale/lease of agricultural State Treasury property;
• management of agricultural resources of State
Treasury;
• creation of work places connected with restructuring
state agriculture;
• assistance for former state farms’ workers.
Agricultural Property Stock of the State Treasury (APS)
(end of 2002, in thousand ha)

• Land taken over into APS 4 705


in which from:
- state farms 3 759
- other sources 946

• Land taken over into APS 4 705


of which:
- agricultural land 3 960
- forests and forested areas 169
- ground under water 342
- roads, residential areas, others. 234
Agricultural Property Stock of the State Treasury
Land Distribution
(end of 2002, in thousand ha)

Total 4 705
in which:
- lease 2 408
- sale 1 272
- free of charge transfer 244
- management/administration 116
- others 66
- contribution into companies 15

Awaiting for disposal 584


Lease/Sale of Agricultural State Treasury Property
Tender Procedures

• public open auction (oral bidding),


• public auction of written offers,
• tender for specific target groups (farmers, former
workers of state farms, members of agricultural co-
operatives).
State Land Market
Leasing

• period of time - 10 years (option to extend up to 30 years),


• rent proposed by written offer or oral auction,
• rent expressed in cash or in kind (cash equivalent of wheat value),
• rent not charged for agricultural land of class VI,
• livestock, stocks, production in progress, machines purchased by

lessee,
• the highest bidder (oral bidding), the best lease terms (written
offer) win the tender,
• exemptions from rent (idle land, bad state of subject of lease,
creation of new work places),
• extension of contract - not need new tender, instalment payment
scheme for working assets and movable.
Leasing – Private Market
a. small plots of land (3-5 ha)
b. often -oral lease contract,
c. short term contracts (3-5 years),
d. often - free of charge leasing, rent replaced
by payment of land tax or neighbour’s aid.
State Market – Leasehold Rent Amount

Since 1992 the average leasehold rent on the state land market
amounted to cash value of 200 kg wheat per hectare (about 100
PLN, i.e. 20 EUR).
Private Market - Leasehold Rent Amount

% of Contracts
in 2000
- free of charge leasing, rent replaced
by payment of land tax or neighbour’s aid 50
- the leasehold rent of up to 200 PLN/ha 25
- the leasehold rent from 200 to 500 PLN/ha 25
Source: Estimations of Research Institute for Agriculture
and Food Economy
State Market - Financial Land Policy

- one purchaser’s ownership cannot exceed 500 ha,


- price of state real estate entered into register of
monuments can be reduced up to 50%,
- instalment payment scheme;
a. down payment – at least 20%,
b. remaining dues - instalment payment
scheme of maximum 15 years,
c. interest rate of unpaid cash dues. No
interest for unpaid dues expressed in kind.
Poland – Average Prices of Land
(PLN per ha)
4.5 PLN = 1 EUR

Year Private Market* State Market**


1995 2 421 1 491
2000 4 786 3 554
2001 5 197 3 414
2002 5 042 3 668***

*arable land
**agricultural land
*** IVquarter of 2002
Source: APA, Research Institute for Agriculture and Food Economy
Prices of Agricultural Land in Europe
2001

Country EUR/ha

Netherlands 30 000
Belgium 30 000
Germany 25 000*
Ireland 12 000
United Kingdom 11 400
France 10 000
Poland 1 400
Romania 400
Source: European Real Estate Council
* The prices on the area of former German Democratic Republic
are lower about 50%.
Poland - European Union Relations
Treaty of Accession - Free Movement of Capital – Agricultural
Land Purchase

• Poland may maintain in force for twelve years from the


date of accession (01.05.2004) the rules regarding the
acquisition of agricultural land and forests by foreigners
(permit necessary)

• EU and EU Area Agreement Nationals who want to


be self-employed farmers and who have been legally
resident and leasing land in Poland for at least 3 years

continuously are the subject of the same procedures as


nationals of Poland regarding the purchase of agricultural
land and forest (from the date of accession - 1.05.2004).
• In the Warmińsko-Mazurskie, Pomorskie,Kujawsko-
Pomorskie, Zachodniopomorskie, Lubuskie, Dolnośląskie,
Opolskie and Wielkopolskie voivodships (voivodship – province
of Poland), the residence and leasing period shall extend to
seven years.
Polish Land Policy -Individual Farmer
(Definition)
(Act of April 11, 2003 on Formation of Agricultural system – came
into force on July 15, 2003)

• natural person,
• owner or leaseholder of agricultural property,
• managing farm personally,
• having proper qualifications,
• residing in the commune, where at least one part of the property is
situated.
Polish Land Policy - Family Farm
( Definition)
• managed by individual farmer
• total area of agricultural land - no more than
300 ha (own and leased).