The Agricultural Ministry is working on amendments to the agricultural lease law. The new regulations aim to streamline leasing agreements, which are often made verbally without registration. This lack of formality hinders farmers who lease lands from pursuing national and EU subsidies. The Ministry assures that both sides will benefit from these changes, and consultations with farmers on the draft law are due to start soon. The new regulations could come into effect in 2026.
According to the results of the General Agricultural Census in 2020, the total number of farms was approximately 1.3 million – a decrease of 13 percent from the previous census in 2010. ARiMR (Agency for Restructuring and Modernisation of Agriculture) estimates show that there are currently 1.2 million agricultural producers in Poland, although the actual figure could be significantly lower.
“The number of farms that lease significant land areas from farmers, particularly those with small-scale production who are not interested in, or able to expand, is growing. Hence, they lease land to those farmers who focus on agricultural production development,” says Czesław Siekierski, the Minister of Agriculture and Rural Development.
Often, these leases are informally agreed without being registered with the ARiMR. Landowners thus receive subsidies under the common agricultural policy, although they are not actually cultivating the land. To streamline these issues, the Ministry of Agriculture is working on amending the regulations concerning the leasing of agricultural land.
“We want to sort this out in a way that benefits both parties. The farmer who cultivates the land will be able to access certain EU subsidies as a tenant. The farmer who leases the land will also be able to access social benefits, such as the Agricultural Social Insurance Fund (KRUS). This new law on leasing will therefore benefit both parties, which I think will be positively received by both,” said the Minister of Agriculture.
“Verbal agreements are permissible, but we would like them to be registered with the Agency for Restructuring, so that it is clear which land is associated with which farm.”
According to the Ministry’s announcement, the new regulations are supposed to encourage the signing of long-term lease agreements and strengthen the stability of agricultural production. Leases would also be registered at the ARiMR, determining who is actually eligible for subsidies. The Minister emphasizes that the beneficiary of national and EU support should be the person who is actually engaged in agricultural production, rather than the landowner.
“Farmers often demand this, especially those who work and cultivate on the land, because they want to benefit from EU subsidies,” explains Czesław Siekierski. “This of course raises some concerns, but we want to make changes through prior agreement and dialogue, so that it does not come as a surprise to the stakeholders.”
The new regulations would also resolve the issue of lease duration. Without a long-term perspective, farmers find it difficult to make further investment decisions. The Minister points out the importance of creating incentives that make lease agreements stable for tenants while also protecting the interests of landowners who lease their land.
“Both sides will determine in the lease what benefits the cultivating farmer will receive from higher payments from both the agency and the EU, which will affect the level of rent. However, this is to be agreed between the parties who settle the lease between themselves,” says the Minister of Agriculture and Rural Development.
In drafting the law, the Ministry is using the experiences of other countries. The draft law is scheduled to be sent for consultation with agricultural organizations by the end of the year.
“Over the next few weeks, we will send the project for discussion with farmers and agricultural organizations. The law is quite specific, so we will probably have to work on it for a while. However, we expect it to come into effect from January 2026,” says Czesław Siekierski.
