Regulatory restrictions, local practices, and farm succession create challenging but increasingly attractive conditions for long-term investment.

For years, Poland has remained one of the most attractive agricultural markets in Europe – both in terms of land quality and regulatory stability. Although the trading of agricultural land is subject to significant restrictions, this market stands out for its predictability and the opportunity to develop large, scalable production projects. For Danish farmers, accustomed to the sector’s high efficiency and professionalism, Poland may be a natural direction for expansion.

A regulated but predictable market

Although EU citizens have been able to purchase agricultural land in Poland since May 2016, the regulations, in particular the Act on the Development of the Agricultural System, remain among the most restrictive in Europe. Their aim is to protect the agricultural structure, prevent speculation and support the family farm model.

In practice, this means that the market is accessible but requires a well-thought-out entry strategy and professional transaction preparation. At the same time, the system is stable, which is a key factor for institutional investors.

Market data: foreign investment lower than expected

Data from the Polish Ministry of the Internal Affairs and Administration show that foreigners acquire a mere 5,500–6,000 ha of all land in Poland annually, including 2,000–2,500 ha of agricultural and forest land. This represents less than 1% of agricultural land turnover.

It is worth noting, however, that these official statistics do not reflect the full extent of investment activity, as the main channel of entry to this market is through transactions involving the acquisition of companies that own agricultural land, rather than the direct purchase of property.

Where in Poland are the best investment opportunities in agricultural land?

Large farms are concentrated mainly in the northern and western voivodeships – particularly in Zachodniopomorskie, Warmińsko-Mazurskie and Wielkopolskie. These are areas of former state-owned farms, characterised by large tracts of land, good soil quality, and well-developed infrastructure.

These regions remain a natural entry point for foreign investors – they offer scale, professionalism, and a predictable business environment.

Investment economics: an attractive balance of costs and subsidies, as well as investment in renewable energy sources

The financial model for investment in Poland is based on subsidies under the Common Agricultural Policy: approx. EUR 200–300/ha, plus additional eco-schemes and modernisation instruments. Compared to Western Europe, Poland offers lower land costs, comparable subsidies and high potential for land value growth.

Importantly, large-scale agricultural properties also open up attractive opportunities for investment in renewable energy sources.

In areas with suitable exposure and wind conditions, it is possible to locate wind turbines, while large tracts of land are favourable for the development of biomass-based installations, and land of lower soil quality is ideal for photovoltaic farms generating electricity.

The renewable energy market in Poland is developing very dynamically and at increasingly lower costs, and hybrid projects – combining agricultural production with green energy generation – are becoming one of the most interesting areas of diversification for large farms and foreign investors.

Legal restrictions

The direct purchase of agricultural land (asset deal) is subject to numerous requirements, including:

• the requirement to hold the status of an individual farmer,
• a restriction on the purchase of agricultural land to a maximum area of 300 ha,
• the right of first refusal and repurchase held by the State Centre for Agricultural Support,
• administrative control of trade.

As a result, investments based solely on the purchase of agricultural properties can be time-consuming and inefficient.

Share deal as the market standard for market entry

The vast majority of large-scale agricultural investments in Poland take the form of acquisitions of land-owning companies (share deal). This model eliminates most regulatory restrictions, enables the acquisition of large tracts of land in a single transaction, and ensures operational continuity as well as access to existing infrastructure and teams.

A good example is the GreenWood Resources Poland portfolio, comprising approximately 6,150 ha across three voivodeships – a typical example of large-scale assets operating as an agricultural enterprise rather than as individual properties.

Succession – the greatest source of investment opportunities

Owners of farms developed since the 1990s are now reaching retirement age, and the number of successors is limited. As a result, the number of off-market offers and share deal transactions is growing. This creates the most attractive investment window for over a decade.

Scale of investment

In terms of the scale of investment, the market can be divided into:

• 50–150 ha – local assets,
• 100–500 ha – medium-sized farms,
• 500–3,000 ha – large-scale farms,
• over 3,000 ha – investment portfolios.

For Danish investors, the most attractive segment is that above 500 ha, which allows for scalability and professional management.

Risks: why it is not advisable to act independently

The key risks include regulatory restrictions on the trading of agricultural land (KOWR), as well as corporate, operational, tax and environmental risks. The success of a transaction depends on its proper structure, thorough due diligence examination and a sound understanding of the legal and administrative landscape.

The role of professional advice – support for Danish investors

This is precisely where cooperation with experienced advisers takes on particular significance. Peter Nielsen & Partners Law Office, founded in Poland by the Danish lawyer Peter Tærø Nielsen over 35 years ago, specialises in advising foreign agricultural investors, share deal transactions, and trading of agricultural land. Our law office provides comprehensive support at every stage of the process: from structuring the investment, through negotiations, to obtaining KOWR approvals and full corporate services.

Summary

The Polish agricultural land market is primarily a market for large enterprises, not individual plots. The greatest opportunities for Danish farmers today arise from company acquisitions, succession processes, and off-market transactions. It is a stable, scalable, and economically attractive market – particularly for long-term investors who are well-prepared and collaborate with local partners. Professional support – such as the one offered by Peter Nielsen & Partners Law Office – is the key to a safe and successful entry into one of the most promising agricultural markets in Europe.