Agricultural lands rise in price in Poland - Fruits & Vegetables from Ukraine (Agricultural Marketing Project)

Agricultural lands rise in price in Poland - Fruits & Vegetables from Ukraine (Agricultural Marketing Project)

According to PAP information, the prices for agricultural lands rapidly increased past year in Poland. The price growth goes on this year, however, the rates have somewhat slowed down. The average price for 1 ha of agricultural land was around $ 3,200 in the first half of 2007.

Lublin county (bordering to Ukraine) has the cheapest agricultural land; one can buy land for in average $ 2,400/ha there. The most expensive land is located in the central regions of Poland; the prices average to 4,700/ha there. It is interesting to mention that in the first half of 2007 the significant price growth was observed at the sales of small land plots up to 10 ha. These sales allocated the most part of transactions on land market. At the same time, the prices for land plots of more than 10 ha somewhat declined in the first half of 2007.

The rates of land rent grow simultaneously with the price growth for land. The growth of rent rates exceeds the growth of prices for land now. The rent rates depend a lot on the prices for grain and other agricultural products. In average, this year the annual rent of 1 ha of agricultural land in Poland amounted to $ 139.

According to estimations done by Andriy Yarmak, the Manager of ""Agrooglyad: Vegetables and Fruits", the price growth for land and the growth of rent rates will have the greatest impact for the growers of grain and oil crops in Poland, as the production cost will grow too. At the same time, fruit&vegetable growers will hardly perceive the impact of this price increase, as they get dozen times as much produce per one hectare. According to the expert's evaluations, next year the land will cost significantly less in Ukraine than in Poland (unless the moratorium for agricultural land sale is extended).

Source: Agrooglyad: Vegetables and Fruits