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Law on agricultural lease . We know the full contentof theproject.

Ustawa o dzierżawie rolniczej. Znamy pełną treść projektu
  • The Ministry of Agriculture and Development of Village, in cooperation with farmers, is working on the draft law on agricultural leases.
  • There are consultations on its contents. Meetings were attended by representatives of unions, ODRs, Institutes, ARiMR, and also the farmers themselves.
  • The project at initially stirred many emotions and hard opposition farmers’ unions, however, after becoming familiar with its content they say, that it is not the worst project.
  • As the ministry emphasizes, this is only the beginning of work on the law, and its writing will continue to allow a large discretion.

At the central meeting of farmers with the head of the department of agriculture, 15 January, farmers were acquainted with the design of the law on agricultural lease. 

This is a proposal, this is only a preliminary material for further discussion, also if it comes to your proposals or postulates, those will be considered in further work – remarked Lidia Kostanska, from the Department of real Estate and Infrastructure in the Ministry of Agriculture.

Today the structure of individual farms, in terms of form of real estate ownership, looks in this way, that on base:

  • owned land organized there are 71.7 % of such

    farms,

  • owned land and leased organized there are 27,8 % of such farms,
  • only owned

    land leased and organized are 0.5% of such farms.

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What regulates the Act on agricultural leases?

The draft law, prepared at the Ministry of Agriculture and Development of Village, regulates in particular:

a) method of concluding the contract (including its form),

b) rules for payment of rent,

c) rights and obligations of parties to the contract,

d) questions of legal subrogation,

e) method of termination of the contract.

– We would like to regulate agricultural leasing so, that this management on leased land would be stable, that the state would have certainty,That they may harvest the plots, but that the landlords, that are the owners of those lands, would not be the landlords – states the resort.

As stresses the ministry, the presented by their in this law proposals, are those proposals on the principle of voluntariness, that means, that if the farmers or the owner and the farmer will not want in the method specified in the law to enter the lease agreement, that they will not must.

It is not that we want to impose some solutions, while we want the state to have the opportunity to use these – emphasized Lidia Kostanska.

Resort indicates, that Law primarily regulates who, what may lease, in what form, for what time and also for how much and what the mutual rights and obligations of the parties of the lease agreement.

– If there is a subject of lease, we would want this to be an agricultural property or the whole farm , on the other hand this does not apply to real property and agricultural property of the State Treasury. The resource of agricultural State Treasury has its own law, that is the Act on the management of agricultural property and there is very detailed and the mode of leasing and the mode of selling, also while what we concentrate on these leases in trading so called private – adds Kostanska.

The Ministry also proposes that the contract for leasing be concluded in written form with date certain.

– It is that the state will after, in any eventual disputes, not have doubt, that the lease was true. If it is about the duration of the lease, that we propose, that this would be a short-term lease. that are leases to five years or long-term leases, from five to thirty years,

where we prefer long-term leases – added Kostanska.

An important requirement, which is included in the law, is an appraisal of the condition of the leased object. 

We propose, that at the

conclusion of the lease and at the termination of the contract the parties, draw a report determining the state of the subject of the lease

both at the time of signing this contract, and at the time of its dissolution. This is about that in the on disputes about the settlement it would be clear, in what state that the object leased to the tenant – Kostanska points out.

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How to secure the interests of both parties?

The most difficult element, as might have been expected, is securing the interests of both parties of the contract. This state results from the fact, that from one party the lessor fears that he loses the right to handle, manage his property. From the other party, the lessee fears excessive interference in the object of the lease.

We want to impose on the lessee an obligation to inform the lessor of production plans, a from the other party, to introduce for the landlord the right to control, what is going on the land. Whether the lease is implemented in accordance with the contract, whether the principles of proper agricultural management are observed. In the situation, if it would become true, that the lease is not implemented in accordance with the agreement, the landlord would have the right to terminate the lease agreement without termination. On the other hand, first would have to call the lessee to stop these violations – adds Kostanska. 

In securing rights the law also offers the lessee the right to priority on re-lease the subject of the lease.

This concerns such situations, in which after completion of the lease the lessor, the landlord repeatedly decides to surrender the property or farm on lease. If this occurs within a year from the completion of the previous lease agreement and it will be at at least 75 percent of that object leased, that then

we propose, that the existing tenant should have first leasing – adds resort. – On the other hand all other conditions, such as

the termination, whether the rent should  be between the parties  reconciled. It is not that that it will

be a continuation of the existing lease. We want that, to inSome cases the tenant had the right to transfer the contract to the third person – Kostanska says. – Transfer contract to person third,  we require in such situations, when the renter has reached retirement age or has been established his permanent incapacity or temporary inability to work in agriculture. If they transfer this lease to their spouse or in-law, with that in such situation they should be qualified to operate agricultural farming, a also when transferring the farm to the successor in under the understanding of the social insurance of farmers. Where that is about long-term leases, and not those short-term – adds.

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Lease rent – there will be clear regulations

The law is to also regulate the terms of rent payment. 

We propose that for contracts of up to one year that the deadline falls at the end of the lease term. On the other hand, for a contract longer than a year, if the parties do not decide otherwise, that for each year in two

installments the first installment would be 31 March, the second 31 February of the leasing year. With this with

this concern, that that the date of rent may not be fall earlier than after

the first profit has been obtained from the subject of the lease – informs the resort.

The Law also introduces provisions on the possibility of modifying the rent. In the event that the rent would be reserved in non-monetary form, the possibility of modifying the rent into monetary settlement will be introduced.

If there is a change in mutual benefits due to a change in economic relations, it will be, that these mutual performances of the lessee and landlord are non-equivalent, then we introduce the possibility of changing the mutual performances. We also introduce reduction.rent on due to extraordinary circumstances, such as disasters of natural origin, different type epidemics. On the other hand this is under the condition, that after first the farmer insures his crops, a after the second he does not receive full compensation for those losses incurred in the farm with insurance – indicates resort. 

The Act

also authorizes the lessor to increase the rent on the result of expenditures, which increase the utility or profitability of the leased object,

if these are made with the lessee’s consent.

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What about the sale of leases in the term of the contract is always a problematic issue. Tenants are fearful because, that they will carry costs, which they will not recover. Also this aspect is to be regulated by eliminating the possibility of terminating the lease without a appropriate period beforehand. 

Similarly, as the maintenance of the lease in the situation, when the landlord dies. 

We wish, that after the death of the tenant in his place may be succeeded by blood residing with him. Here was that there was such an assumption, that there should be heirs. This is obviously a postulate to consider, while we, formulating this provision,

have considered this, that often in rural attitudes these inheritance proceedings are not conducted, so that we like to facilitate

there  the completion of the lease agreement, we would like that these would be the people who reside with the deceased farmer – Kostanska says. 

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Terminationofcontractsonlyinspecifiedcases

Ifthereisa terminationofleases,thatonprinciplewe would likethatthelong-term andshort-termcontractmaybeterminatedwithouttermination,onlyinspecifiedcases.Thosearesuchcases,asfor exampledelayingthepaymentofrentfortwocompleteperiodsofpayment.Of course,afterthepreviousrequesttothat,that,that,thattherentbe paid-transfersresort.

Additionally,asthereasonsfor terminationofthecontractwithoutterminationareindicatedsuchcases,as:

  • performanceoftheleasecontractinconsistentwithprinciplesofproperagricultural management, 
  • doingdestructionintheobjectofthe lease,whichcausestheobjectofthe leaseto loseitsusefulness.On the other hand,forterminationthecontractswouldbeterminatedforoneyeartothefuture,butthiswouldapplyonlyshort-termcontractsconcludedforat leasttwoyears.

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TheBritishAgricultural Fairis underway.Greatnewsnone,exceptClarksoninnewtract

Whowillpayfarm taxforleases?

Accordingtothe draftlaw,astotherule,alltaxesandpublicchargesshouldbe paidby the lessee, unlessthepartiesagreeotherintheagreement.

Intheannexyouwill findthefullcontentofthelawonagricultural lease.

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