Will it be easier to transfer public farmland to members of farming families?
For farmers who decide to give up farming, the government is proposing to make it easier to transfer land rented from the state to family members from 2027. But farmers warn of potential land grabs and abuses.
The Ministry of Agriculture (MoA) proposes that the spouses, partners, parents, children and grandchildren of such farmers should not only have professional training in farming, but also a farmer's certificate. In this case, the farmer could transfer the lease rights of the state land to them.
Aura Šalugienė, Director of the Melioration, Agricultural Land and Infrastructure Department of the Ministry of Agriculture, said that the amendments would allow the transfer of land leased from the state only if the farm of the person who is giving up farming is also being transferred.
„The transfer of buildings or other immovable property could also involve the transfer of farmland leased from the state Only leasehold rights could not be transferred. To avoid speculation, you cannot transfer the lease alone. Other real estate or a part of it must be transferred," A. Šalugienė explained to BNS.
„For example, when transferring buildings or other real estate to grandchildren, lease rights could also be transferred. However, if the property is transferred only to one of the persons holding the right, the lease rights to state land cannot be transferred to another person. Because, in principle, he is not carrying out any activity," she added.
According to the MAF representative, it is almost unheard of for a farmer to own only leasehold land: „The leasehold right to state land as a separate object could not be transferred in order to avoid cases of abuse and speculation.“
These amendments to the Land Law will be discussed by the Government and then voted by the Seimas.Arūnas Svitojus, chairman of the Lithuanian Family Farmers' Union, tells BNS that the proposed procedure should have been introduced 20 years ago.
He also questioned the transparency of the process, as farms could be taken over, for example, by companies.
„It is very important not to create loopholes that could be used by someone else and not necessarily for the purpose of ensuring the continuity of the farm“, – he told BNS.
The farmer said he had doubts about the possibility of transferring land to a spouse, partner, parents or adoptive parents.
„It would be a bit strange if children started giving land to their parents. That is not the point. Why then do we allow parents to give them away? Isn't this creating a medium to make those lands start walking, or is it? It is a good idea, it is a good goal for the young, but when I look at the conditions themselves, I have doubts," said Buivydas.
„It is possible to become a fiancé. We make today a contract, today partners. This is the so-called cohabitee. It is very important to make it clear who the partner is, whether it is a farm partner or a family partner. I don't see a sentence anywhere that talks only about natural persons," he mused.
A. Svitoy said that the amendments are not in line with farmers, especially those with family farms.
The ministry says that the current regime is an obstacle to the generational change of family farms – farmers who decide to stop farming and transfer their farm or part of it to family members have to terminate the lease of state farmland and the successor has to reinitiate the leasing of the land in order to continue using it.
According to the MAF, there is a risk of losing the land leased by the family member who has transferred the farm, as it may be leased to other farmers.
According to the MAF, on 1 February there were almost 14.2 thousand farmers aged 40 years and younger, 44.4 thousand farmers aged 40 years and younger, 44.4 thousand farmers aged 40 years and younger, and 25.8 thousand farmers who had not yet reached retirement age.
„These figures show that the farming community is dominated by the elderly, with a relatively smaller proportion of young farmers. Given this, it is likely that older farmers would be more likely to take advantage of the opportunity to transfer the right to lease state land to their family members," the Ministry of Agriculture said in a commentary to BNS.