Land Valuation Methods in Land Consolidation Proceedings vs. Implementation of the Purpose of Land Consolidation as Specified in the Land Consolidation and Exchange Act of 1982 in Rural Poland

Abstract

Correct spatial structure of agricultural land is one of the key conditions of efficient farming and enables the use of advanced farming technologies. In Poland, land consolidation is regulated by the Land Consolidation and Exchange Act of 1982 and is intended to improve the spatial structure of farmland. Land valuation is a key part of this, as it determines the compensation that is offered to stakeholders whose lands are diminished in land consolidation. However, in Poland, various land valuation methods are used. The article examines relevant documents obtained from all county offices (starosties) involved in consolidations in 2017–2020, such as minutes of meetings of land consolidation participants and their resolutions on adopting land valuation principles. The analysis reveals that the current land valuation methods in the consolidation process do not ensure the achievement of the main aim of land consolidation, which is to provide better conditions for farming by way of improving the spatial structure of farmland. This is primarily because the land valuation methods employed value land below current market prices. Based on this finding, some legal amendments are proposed related to land valuation that are more suited to the needs of the land consolidation process. The desirable modifications include, among other things, rejecting the decisive role of public bodies to the benefit of professional valuation done by registered property appraisers. In this regard, two variants of amendments to Article 11 of the Land Consolidation and Exchange Act are proposed.