Changes of levels of rent and risk in the activity of rural farms in Poland

Abstract

Lease of agricultural land is a form of the land use. It enables to create or increase a farm, without having to pay capital-expenditure related to the purchase of land. In exchange for the land lease, the tenant agrees to pay a rent, which is a constant burden on its budget and can affect the economic situation of the farm. Changes in the value of rent result in, to a large extent, deficit of land in some areas of Poland, increase of prices and demand for agricultural land. The aim of the study was to analyse the determinants and dynamics of changes in the rates of agricultural rents. The source material for the study were data on the agricultural land market in Poland in 2000-2011 published by the IERiGŻ and GUS.

Keywords

• lease of agricultural land
• rent
• risk
• farm