CONDITIONS OF AGRICULTURAL LAND PRICES DEVELOPMENT IN POLAND

Abstract

The aim of the paper has been to diagnose factors determining agricultural land
prices, classifying them and determining which of them plays the most important
role. The considerations were based on selected subject literature, the results of
researches conducted by other authors, as well as analysis of statistical data from the
Central Statistical Office of Poland and Eurostat. Factors determining agricultural
land prices in Poland can be divided into two groups: 2) Market: supply and demand
for agricultural land allotted to agricultural production; supply and demand for
agricultural land that can be, in compliance with the binding law, allotted to purposes
other than agricultural; simultaneous functioning of two market segments - private
(on which a majority of land trading is conducted among farmers) as well as the state
market segment – the Stock of Agricultural Property of the State Treasury managed,
on behalf of the owner - the State Treasury, by the state institution - the Agricultural
Property Agency; profitability of agricultural production. 2) Non-market: historical
conditions – dominance of private property in Polish agriculture, both in the market
economy and in the previous economic system; tradition, culture - passing farms
from generation to generation; Poland’s accession to the European Union and
covering Polish farmers with common agricultural policy instruments; ending the
transitional period of purchasing Polish agricultural properties by foreigners on 1
May 2016. After this period, the hitherto limitations (special permits) for foreigners
in purchasing agricultural properties in Poland were lifted.