According to preliminary data, the average national purchase price of wheat in the first half of 2024 was PLN 114.43 per 1 dt.
This price is used to determine the amount of rent for agricultural properties leased from the State Treasury.
For comparison, the average national purchase price of wheat for the period of 11 quarters preceding the first half of 2024 (published on January 18 this year) was PLN 117.34 per 1 dt.
The purchase price index of basic agricultural products (wheat and rye grains, live beef, pork and poultry, and cow's milk) in the first half of 2024 compared to the second half of 2023 was 96.5 (price drop by 3.5%).
The given indicator serves to index the rent for agricultural properties leased from the State Treasury.
For comparison, the index of changes in purchase prices of basic agricultural products (wheat and rye grains, beef, pork and poultry slaughter animals and cow's milk) in the second half of 2023 compared to the first half of 2023 amounted to 89.8 (price drop by 10 .2%).
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Tenants will pay higher rent. Changing the rules for calculating rates helped moderately
Lease rents according to KOWR
As of December 31, 2023, the number of active land lease agreements from the WRSP Resource was 68,909 for an area of 1,038,061 ha. This is 633 contracts more and 31,454 ha less than a year earlier, i.e. as of December 31. 2022
The average rent for land leased by KOWR in 2023 was 12.9 dt/ha.
The highest average rents were obtained in the following voivodeships: Wielkopolskie – 23.0 dt/ha, Opolskie – 19.3 dt/ha and Świętokrzyskie – 17.9 dt/ha.
The list of rent amounts in individual area groups shows that the highest average rent occurred in the area group 10.00 – 99.99 ha and amounted to 13.9 dt of wheat/ha (854 contracts) and in the area group 1.01 – 9.99 ha – 11.0 dt of wheat/ha (1,290 contracts). Nearly 71% of lease agreements concluded in 2023 concerned land with an area of up to 10 ha.
Analyzing the results year-on-year, i.e. compared to the end of 2022 – in 2023 there was an increase in the average rent by 0.7 dt of wheat / ha, with 10,699 ha less land area leased and 873 fewer contracts concluded.
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KOWR plots over 2 ha for sale again?
How is the rent determined?
Pursuant to Art. 39a of the Act of October 19, 1991 on the management of agricultural real estate of the State Treasury, the lease fee is set in the contract as a sum of money or as the monetary equivalent of an appropriate amount of wheat. The form most often used by KOWR in contracts with tenants is the monetary equivalent of decitons (100 kg) of wheat per hectare. The rent is payable twice a year in half-yearly installments, i.e. for the first half of the year the rent is payable on September 30, October 31 or November 15, while for the second half of the year it is payable on February 28 or March 31 of the following year. The value of rent for a given half-year results from multiplying half of the amount of deciton of rent payable for a given calendar year by the price of wheat published by the Central Statistical Office.
From January 1, 2024 (in accordance with the wording of Article 39a(4) of the above-mentioned Act), the rent receivable specified in the contract as the monetary equivalent of the appropriate amount of wheat is determined on the basis of the average domestic purchase price of wheat for the eleven quarters preceding the first half of the calendar year. when the rent is due. Pursuant to Art. 39a section 7 above the Act, the average national purchase price of wheat referred to in section 4, is determined on the basis of the announcement of the President of the Central Statistical Office, published in the Official Journal of the Republic of Poland "Monitor Polski" within 20 days after the end of each calendar half-year.
