Deregulation of Agricultural Land Trade: Government Adopts Project Facilitating Transactions for Entrepreneurs

The government reform aims to deeply deregulate the agricultural real estate market in Poland. According to the draft adopted on Tuesday, entrepreneurs transforming a sole proprietorship into a commercial company will no longer need to seek approval from the National Support Centre for Agriculture to acquire agricultural land. This is a change of fundamental importance for the development of Polish agribusiness, as previous procedures were often lengthy and unclear in interpretation. Additionally, companies transforming into other capital entities will be completely exempt from restrictions on land acquisition, which is intended to stimulate consolidation and professionalization of the agri-food sector across the country. The Act on Shaping the Agricultural System was introduced in 2003 to prevent speculative land purchases, but subsequent amendments in 2016 and 2019 rigorously limited the circle of persons eligible to acquire it. The amendment also introduces precise rules regarding the state's pre-emptive right to purchase land. The Ministry of Agriculture and Rural Development indicates that reducing formalities in company transformations will allow for smoother capital flow and increase legal certainty for investors. Previously, the Director General of the National Support Centre for Agriculture had broad control powers, which—in the opinion of the draft's authors—in specific cases of company transformations constituted unnecessary administrative burdens. The Chancellery of the Prime Minister emphasizes that these changes are part of a broader government deregulation package aimed at supporting domestic businesses in the face of growing competition on European markets. <porównanie tytuł=