1. 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?

2. Agricultural Area million hectares (ha) in 2002 Poland 18.4 Hungary5.9 Czech Republic4.3 Lithuania3.5 Latvia2.5 Slovakia 2.4 Estonia1.0 Slovenia0.5 Cyprus0.1 total CC - 9 38.6

3. 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

4. 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

5. 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.

6. 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.

7. 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.

8. 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

9. 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

10. 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.

11. 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

12. 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

13. 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).

14. 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.

15. 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.

16. 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

17. 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.

18. 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

19. Prices of Agricultural Land in Europe 2001 CountryEUR/ha Netherlands30 000 Belgium30 000 Germany25 000* Ireland12 000 United Kingdom11 400 France10 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%.

20.  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). 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)

21. 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.

22. 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).