The new law changes restrictions on trading in agricultural real estate, introduces exemptions from certain provisions of the Act on the Formation of Agricultural System, simplifies certain procedures but at the same time introduces new ones.
Among other things, the catalogue of situations in which agricultural real estate may be acquired without the consent of the Director General of the National Centre for Agricultural Support (“Krajowy Ośrodek Wsparcia Rolnictwa”) (“KOWR”) by persons who do not have the status of the individual farmer has been extended by the following (subject, however, to the pre-emption right of KOWR in some cases): 1. the area of agricultural land which may also be acquired by persons other than farmers was increased up to 1 ha (previously 0.3 ha); 2. agricultural real estate can now be acquired in the course of enforcement and bankruptcy proceedings; 3. agricultural real estate can now be acquired as a result of division, transformation or merger of commercial law companies. The period in which the acquirer of the agricultural real estate is obliged to run the farm comprising the acquired agricultural real estate, and in which the acquired real estate can neither be sold, nor its possession transferred to other entities, was shortened from 10 to 5 years. The right of pre-emption vested in KOWR in relation to equity holdings or shares in capital companies which are the owners or perpetual usufructuaries of agricultural real estate has been limited. The amendment act provides that the pre-emption right shall not apply to companies which are the owners or perpetual usufructuaries of agricultural real property(ies) with the total area of up to 5 ha. Some provisions concerning, among others, the obligation to announce the intention to sell agricultural real estate in the electronic form, will enter into force as of 12 June 2020.
