Liberalization of the Land Rotation Act



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Agricultural parcels up to 1 hectare and land located in cities will buy a person who is not a farmer. The rest of the agricultural real estate, as before, will only be available to farmers – supposes the proposed amendment on the configuration of the agricultural system.

The amendment had been announced a year after the entry into force of the law on the suspension of the sale of the reserve of ownership of the Treasury (from April 2016). However, following many comments from various farm organizations, the project was released this week on the Government Legislation Center website. Its author is the Ministry of Agriculture.

During the consultation, the need to clarify certain provisions concerning, inter alia, Prerequisites for obtaining the authorization for the sale of immovable property was stressed. It was postulated to relax regulations on the acquisition of small agricultural parcels.

The bill does not change the principle that the buyer of a property can only be a farmer, but introduces deviations from it. The new regulation allows non-farmers to purchase agricultural parcels of up to 1 hectare (currently up to 0.3 ha).as well as in the context of an enforcement proceeding or a bankruptcy proceeding, following the division of property after the end of the marriage, a decline resulting from the transformation of corporations.

In this case, the Director General of the National Center for Agricultural Support will not be required to obtain his consent for the purchase of the property, but KOWR will have the right of preemption of such property.

According to the project, farmers will also be able to buy farmland located in administrative areas of cities; plots marked in the registers as lands under the ponds, which constitute at least 70 percent real estate sector; acquired from state resources as so-called "allotment gardens".

The project expands the catalog of people for whom real estate can be sold – for the siblings of parents and stepchildren.

With the agreement of the director of KOWR, the agricultural real estate will be able to acquire higher education institutions for educational purposes, as well as legal persons from state and local governments to public purposes.

The course of action and conditions that condition the consent of the KOWR Director to the purchase of real estate, among others, have been clarified. by specifying the requirements to be met by the application.

The project proposes to relax the provisions relating to the sale of purchased agricultural property. It states that the buyer of farmland will have to operate a farm for 5 years and not up to 10 years. It will be possible to dispose of these lands before the expiration of five years with the consent of the director of KOWR through an administrative decision and not by a court.

In addition, the authors of the project propose to modify the law on the property management of the State Treasury to enable KOWR to make investments in housing. This program should be complemented by the "Flat Plus" program, especially in rural areas.

As stated by the Ministry of Agriculture in the justification of the draft law, previous regulations, contrary to fears of opponents of these solutions, did not cause the "freeze" of land trade in Poland. In 2017, private trade between farmers amounted to about 57,500 people. In addition, the changes introduced stabilized agricultural land prices, which soared in 2016 to reach 40,000 privately. For the second quarter of 2018, the price per hectare of land rose to 44,200 zł.

Most of the proposed regulations must be applied 14 days after publication.

Source: niezalezna.pl, pap

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