Content. SLOVAK AGRICULTURE Obstacles and Stimuli. 1. Position of agriculture in Slovakia. 2. Issues influencing competitiveness.

Transcription

1 SLOVAK AGRICULTURE Obstacles and Stimuli Lucia Palšová Department of Law Content 1. Position of agriculture in Slovakia 2. Issues influencing competitiveness of Slovak farmers 1

2 Agriculture in Slovakia Position of Agriculture in the National Economy (2011) Share on GDP: 3.9%, Share on employment: 4.38%, Foreign trade in agriculture:$ mil. Average salary in agriculture: 79% of average salary. Total area of agricultural land: ac 2

3 Structure of Land in Slovakia Agriculture land/capita 0,4518 ha Arable land/capita 0,259 ha Loss of Agricultural Land in Slovakia In accordance with the law, it is an easy process based on application. Charges for permanent exclusion of agricultural land: 0,5 20 /m2. 3

4 No. of Farms by the Legal Forms Number of farms: Registered farms: (34 %) % of land entrepreneurs individuals (73.80%), companies (18.30%), cooperatives (7%). Issues Influencing Competitiveness of Slovak Farmers Slow development of land market Non-efficient usage of EU subsidies Barriers of competitiveness Non-sufficient support from the state 4

5 1. Slow Development of Land Market Based on Ownership Historical Backgrounds Before natural development of land property rights, socialistic period => violation of fundamental democratic principles of land, property rights, restructuralisation of land property rights all periods has influence on current situation in land ownership and tenancy 5

6 Before types of farms: - small farmers with 3, 5, 7 ha - big farms of nobles Fragmentation of the land Average plot 0,45 ha 3 reasons: legal: inheritance allowed all children to be descendents of agricultural land, technical: small size of agricultural plots, spatial dispersion of land in the territory. Period from 1948 to categories of land property rights and rights of use: state ownership - inviolability of state property cooperative using - confiscated land - collectivization private ownership - aim: liquidation of private ownership division of property rights and rights of use (property rights existed but without the ownership rights - cadastre/land registry only rights of use 6

7 After 1991 Restructuralisation in Land Property Rights Amendment of Constitution and Acts Restoration of land to the origin owners Renewal of Cadastre/land registry Transformation of agricultural cooperatives Privatisation of state companies to private demanders 1. Amendment of Constitution Right of everyone to own a property Property rights have the same right to be protected by the state Civil Code is defined: To own means the right of the owner to keep, exploit, use the fruit and benefits and dispose with the subject of ownership within the law. 7

8 2. Restoration of the Property Rights Restoration of property rights to original owners/or their descendents in accordance with land evidence/cadastre from the year restoration acts 1991, 2003 Entitled persons: Slovak citizen Foreigners not entitled from restoration Restoration finished in % of unknown owners of agricultural land administration of Slovak land fund Special act on unknown owners- was cancelled by Constitutional Court 20% unknown land of owners 8

9 Structure of Ownership of Agricultural Land acquisition of agricultural land purchased price is: /ha 3. Cadastre/Land Registry - public evidence of the property rights and rental relationships to the agricultural land Nowadays 2 functions: a) evidence of all properties (force owner or user to update real situation on agricultural land with the cadastre) b) constitutional function (with registration arise property rights to the owner) 9

10 4. Transformation of Agricultural Cooperatives 1. Agricultural land: pass to the origin owners 2. Cooperative property transformation project - 50% of the farm property- owners of agricultural land - 20% - for employees - 30% - tangible property (machines, animals) - allotment certificates published for those who were not interested in farming At the beginning it was believed that the agriculture land would be used directly by owners Present situation: The most agricultural land is rented to companies, cooperatives or to individual farmers, so rent is the major form of land transactions Low interest in use of land by owners 10

11 Problems: - Land fragmentation - Unknown land owners - Low interest in use of land by owners has implication on slowly developing land market - Land consolidation - Act on agricultural land tenancy - Aquirement of the property rights by foreigners 1. Land Consolidation fragmentation: Average size of agricultural plot is 0,45 ha with co-owners, plots of one owner are fragmented in territory consolidation (mending, subdivision, land arrangements, implementation of communications, water, and recultivation measures in accordance with land property rights and land use) Act related to restriction of land fragmentation (from legal act or decision of state body can not arise plot of land less than 2000 m 2 for the agricultural land or land less than 5000 m 2 for the forest land. 11

12 Land office prepares a land consolidation project for the territory (ecological principles) approved by all owners Complicated process uncompleted land consolidation 3. Act on Agricultural Land Tenancy More than 90% of agricultural land is rented, Special legal regulation of agricultural rental contract: time for rental is limited: minimum 5 years- max. 25 year (temporary contract) rental price: accordance the act (in 2011 was /ha of agricultural land) 12

13 4. Possibility to Acquire Ownership to Agricultural Land by a Foreigner possibility to acquire a land by foreigners act to protect Slovak land circumvention => foreigners set up a Slovak legal entity (the became companions) => legal entity is entitled to buy agricultural land threat for Slovak farmers Non-efficient Usage of Subsidies in Agriculture 13

14 Financial Support in Agriculture State subsidies: complementary national direct payments. European Union: direct payments (SAPS, special sugar payment, special payment for fruit and vegetable, special payment cows), support trough the Rural Development Program. Rural Development Programme of the SR Axis mil. Improving the competitiveness of the agricultural and forestry sector Axis mil. Axis mil. Improving the environment and the countryside Quality of life in rural areas and diversification of the rural economy Axis mil. Implementation of the Leader approach 14

15 Barriers in Usage of Subsidies In 2011 only 34.85% of subsidies were implemented due to: - complicated process of application and running of project - co-financing - delays in refunding - 90% of farmers were not supported Non-sufficient support from the state 15

16 Institutional Support Institutions of the EU Slovak institutions of state administration: - Ministry of Agriculture and RD SR - Contributory and budgetary Organizations of ministry, - Agricultural Paying Agency, - Agroinstitute, - other statistics, research and educational organizations. Extension 1. Agroinstitute Nitra - state company, center of agricultural extension, primarily financed by the government as a state service, some activities financed by farmers or from the EU, 2. Individual advisors - obtain a certificate from Agroinstitute, 3. Scientific research institutions - Slovak Agricultural and Food Chamber, universities, secondary schools, 4. Third sector voluntary associations, unprofessional extension based on relationships own experiences of farmers. 16

17 Conclusions Slovakia is considered as an agricultural country with long tradition in agriculture, socialist period disrupted relationship between man and land, issues cased by socialism influence the agriculture also nowadays, care for agricultural land in hands of farmers (insufficient support from state), subsidies are existing but there are many issues which prevent farmers from taking them. Thank you for your attention Questions 17