On August 28, 2023 the President of the Republic of Poland signed a bill amending the provisions of, among other things, the Act on the management of agricultural properties of the State Treasury and the Act on shaping the agricultural system. These changes may have a practical dimension with regard to the trade in agricultural real estate on the private market.
The amendment introduces facilities regarding the possibility of leasing land without the typical rules of priority. This applies to agricultural real estate with an area of less than 1ha, and including at least 70% of wasteland or agricultural land with the lowest bonding classes, leased for purpose of obtaining energy from renewable sources. The amendment introduces facilities for investments for purposes related to renewable energy sources, which may represent interesting investment opportunities.
Restrictions on the acquisition of agricultural real estate have so far not been applied to agricultural real estate of less than 0.3ha. After the amendments come into force, the area of agricultural land will be decisive, not the size of the land itself. If the agricultural area of the land is less than 0.3 ha, the rigours of the Act will not apply.
In addition, the legislator has addressed the problem of applying the Act to agricultural land of more than 1 ha, in the case of its acquisition by companies as a result of their transformation. We have seen the exclusion of the application of restrictions on the disposal of real estate in cases of transformation of business entities into another legal form. Until now, the regulation has caused many difficulties in its correct application, and the amendment is a response to the doubts of entrepreneurs.
The hitherto favourable provisions concerning family foundations, which exempted such entities from restrictions on the acquisition of agricultural real estate, have been changed as a result of the amendment in question and . After the amendment enters into force, such entities will also be able to acquire the agricultural real estate only if they meet the requirements set out in the Act and obtain the consent of the Director General of National Support Centre for Agriculture (KOWR).
The Act shall enter into force 14 days after its promulgation. The latest date of its promulgation in the Government Legislation Centre was indicated as 20 September 2023, so the Act shall enter into force on 4 October 2023 at the latest.
Author:
Jagoda Korzeniowska
Attorney-at-law trainee