Land use and land reform in former Central and East European countries

Abstract

Abstract The importance of agriculture is decreasing all over the world. The aim of the paper is to compare the ownership structure and land use in some selected former Central and Eastern European countries. The property structure and land use is in dichotomy, the production is performed simultaneously on small-size farms which produce primarily for self-consumption. The importance of farm land leases is increasing. The present paper tries to identify the main differences and similarities in land ownership and property structure, the changes in the last fifteen years, what happened and whether the expectations had been met. Furthermore the paper compares the main regulations of land ownership and tenancy in different countries, explains land market protection, and the need of a real valuation system of land. Key words : property structure, land prices, land use, land use and ownership Introduction The role and importance of agriculture has decreased within the national economy in Central and Eastern European countries. Although the agriculture was different before the social-economic transition in Hungary, Slovak Republic, Poland, Estonia, Lithuania, Latvia, following the integration into the European Union, similarities can be found in the role of agriculture in these countries. The property structure and land use can be characterized by dichotomy that is the large and middle-scale farms, which provide the major portion of commercial agricultural production, operate simultaneously with small-size farms which produce primarily for self-consumption. The importance of farm land leases is increasing and the rate of tenancy is growing. Agricultural land prices were gradually increasing in the examined countries during the past decade, but in general they remain below the level of farm land prices in the EU-15 countries. Prior to the EU accession it was expected that agricultural land would be cultivated mostly by owners. However, these expectations have not been met and a large number of agricultural land owners are interested in land sale or lease, and they are withdrawing completely from farming. The increased interest in land sales or lease will influence the leasing conditions, including the annual rent. Moreover, changes in leasing conditions will change the profitability of agriculture. We compare the main characteristics of land tenure and land use in selected countries according to the observed trends in other European countries. Before the social-economic transition, agriculture had important role in the national economy in the new EU member states. (Table 1.)