CEE REPORT FLIPPING PAGES.pdf

The State continues to LQÁXHQFH WKH VXSSO\ VLGH of themarket through WKH ÀQDO VWDJHV RI LWV privatisation programme

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7KH 6WDWH FRQWLQXHV WR LQÁXHQFH WKH VXSSO\ VLGH RI WKHPDUNHW WKURXJK WKH ÀQDO VWDJHV RI LWV SULYDWLVDWLRQ programme but the private sector KDV GHYHORSHG VLJQLÀFDQWO\ RYHU WKH ODVW WKUHH \HDUV 7KH GHYHORSPHQW RI the private sector is based on smaller farmers now consolidating and becomingmore professional so the DYHUDJH IDUPVL]H LV QRZ LQFUHDVLQJ 2SSRUWXQLW\ H[LVWV ERWK IRU FRQVROLGDWLQJ smaller farms and also in the larger end KD RI WKH IDUPVL]H UDQJHZKLFK tends to be less crowded. Who is selling land in Poland - large farms, usually former state farms are now sold by corporations which often hold a combination of freehold and leasehold rights to land. There are very few opportunities publicly marketed with transactions tending to occur o#market. On the domestic market there are many farmers looking to sell smaller units and the more successful growers are expanding intomore viable units.

Rents have increased signi%cantly on the back of sustained high commodity prices and again the prime arable sector has seen the biggest increases. In prime arable areas rents have achieved between GBP 100/ha (Euro 126/ha) and GBP 450/ ha (Euro 570/ha) for large areas of very high quality land. The competition in these areas is so tight that farmers seemhappy to pay over the odds for land rents, these extremely high rents are a recent phenomenonmost likely a result of pent up demand in speci%c regions where farmers have heavily invested and needmore land to justify the returns. Across the nation and over the past 10 years there has been steady rental growth of about a doubling every 5 years as the market has developed. In 2003 average rents were about £33/ hectare and very similar across the country but by 2013 the disparity between regions has grown and the country average is now about £131/ha. The state still leases to farmers 1.25mhectares in the ag property stock of the treasury. Out of this area about 304k h/a is available for purchase from the state. Attractive opportunities are available to collaborate with the occupiers of state owned land.

14 CEE Land Market Brief 2014