Today's article in the "Lawyer on the Farm" series will be devoted to a proposal for statutory regulation of agricultural land leases, the principles of which have been presented by the Ministry of Agriculture and Rural Development (the " Ministry "). The draft legislation on this subject is expected to be adopted in the fourth quarter of this year.
The presented assumptions emphasize that agricultural land leasing is generally a positive phenomenon – it is a manifestation of land concentration resulting from the rationalization of management on small-area farms. It should be noted that such farms still constitute the majority of Polish agriculture. Therefore, in the absence of interest in unprofitable agricultural production on small areas, the land can still be used by another farmer, ensuring production continuity.
However, the Ministry noted that it is common for agricultural land to be used without disclosing title. This is believed to result in a lack of certainty and stability for the land user. Furthermore, in such a situation, the lessee's position should be strengthened, while preserving the rights of the lessor. The Ministry also cited data indicating that up to 75% of lease agreements concluded in Poland are oral. This stems from the current legal framework, which fails to address contemporary agricultural issues and fails to ensure the durability and continuity of leases. The project's assumptions also highlight the manipulations allegedly committed by some farmers in tenders organized by the National Support Centre for Agricultural Development (KOWR), specifically by omitting land leased under oral agreements that had previously been registered for direct payments, for example. Furthermore, oral agreements are believed to carry the risk of losing financial support due to potential difficulties in demonstrating legal title to the land. According to the Ministry, this situation creates a "gray zone" in agricultural land leasing.
The Ministry also cited the fact that agricultural land leases are regulated by separate laws and codes in other EU countries, including France and Italy. Furthermore, introducing separate provisions outside the Civil Code (CC) would circumvent the systemic changes resulting from the regulation of leases in the CC, to which the provisions on rentals also apply accordingly, which, according to the Ministry, currently does not meet the needs of agriculture.
The above problems are to be addressed by developing a new law comprehensively regulating the leasing of real estate and farms, going beyond the standards of the Civil Code. The new regulations are to regulate, among other things:
- the method of concluding the agreement (including its form) – the new lease must be concluded in writing with a certain date (i.e. official or notarial confirmation of its conclusion);
- rent payment rules;
- the rights and obligations of the parties to the contract, i.e., among others, the right of the lessee to make investments to increase production after obtaining the consent of the lessor or the court, the right of the lessor to enter the leased land or farm to inspect the performance of the contract by the lessee;
- introducing a division into short-term contracts (up to 5 years) and long-term contracts (from 5 to 30 years);
- issues of legal succession by introducing the possibility of changing the tenant in a situation where: (i) he has reached retirement age, (ii) he transfers his rights and obligations to his spouse or descendants, and (iii) he transfers his agricultural farm to a successor within the meaning of the provisions on social insurance for farmers;
- method of terminating the contract.
The subject of the new agreement is to be agricultural farms or agricultural properties,
excluding properties included in the Agricultural Property Resource of the State Treasury.
The proposed regulations are intended to strengthen the tenant's position while safeguarding the landlord's rights. The tenant may demand that the landlord make the necessary expenditures to enable the tenant to use the leased property.
The draft law also regulates the termination of lease agreements, the settlement of expenses, and provides for the lessee's priority in re-leasing 50% of the leased property. However, it is not specified why this should be only 50%.
The Ministry is undoubtedly right to draw attention to the problems generated by verbal lease agreements and the current regulations regarding agricultural land leases. The desire to support the position of tenants and stabilize their title to the land should be appreciated. However, the attempt to completely separate land and farm lease agreements from the code system and regulate them separately could result in a certain chaos. Furthermore, it is important to remember that agreements should, above all, reflect the will of the parties. Replacing the parties' agreements with mandatory provisions could encourage further circumvention of the law. Therefore, the proposed regulations should be subject to extensive consultation and developed with great care to avoid creating a new "gray zone."
As soon as a draft bill prepared on the basis of the Ministry's above-mentioned assumptions is published, it will certainly be subject to analysis – so we encourage you to follow the "Lawyer on the Farm" series.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of September 17, 2025.
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