Prisnejsi ochrana zemedelske pudy

Stricter protection of agricultural land

On 3 May 2024, the Chamber of Deputies approved a bill amending Act No. 334/1992 Coll., on the protection of agricultural land, as amended (the "Amendment"). The Amendment is intended to address the application problems of the current legislation together with its outdatedness and to strengthen the protection of the ecological functions of the agricultural land fund and the economic and environmental functions of the agricultural landscape.

Protection of the agricultural land fund and its extension

Probably the most significant change is the prohibition to withdraw the best quality land (Class I or II land according to the soil ecological unit) from the agricultural land fund for the purpose of trade or storage or for standard (conventional) photovoltaic power plants. An exception to this rule will be made for strategic infrastructure buildings and related projects. In addition, the ban will not apply to projects located on land defined as developable in the spatial planning documentation in force prior to the entry into force of the Amendment during a ten-year transitional period.

The Amendment also provides for a general obligation to prevent the occurrence of damage to agricultural land and, in the event that such damage occurs, to take immediate action to remedy the situation. It also introduces the principle of strengthening the quantitative protection of the agricultural land fund. Should non-agricultural use of agricultural land or the designation of agricultural land for non-agricultural purposes in spatial planning documentation occur after the Amendment comes into force, priority will be given to agricultural land adjacent to the built-up area.

In order to expand the agricultural land fund, the Amendment introduces a new institution of declaring land as agricultural land. This allows for the inclusion of non-agricultural land into the agricultural land fund at the proposal of the landowner or with his consent.

Exemption for agrovoltaic electricity products

The rules on the protection of the agricultural land fund will not apply to so-called agrovoltaic electricity generators. These are defined as those energy facilities for converting solar energy into electricity under which agricultural land is farmed, typically orchards, vineyards, or potted plant areas. The amendment also sets out the conditions under which these projects can be implemented.

Thanks to the Amendment, farmers will thus be able to use agricultural land for agricultural purposes and for electricity generation at the same time. This should protect agricultural land (today's legislation requires land to be removed from agricultural land after the installation of photovoltaic panels) without restricting the development of towns, villages or the economy. In addition, subsidies can be paid for land managed in this way, compared to the current situation.

Prohibition on the sale of agricultural land to third countries

The amendment also prevents the acquisition of agricultural land by persons from countries whose legal system does not allow citizens of the Czech Republic, natural persons residing in the Czech Republic or legal persons with their registered office in the Czech Republic to acquire ownership of agricultural land. Exceptions to this prohibition are made in particular for natural and legal persons from Member States of the European Union, the European Economic Area and Switzerland. The reason for this change was concern about the purchase of agricultural land by investment groups from Asia.

We are monitoring further developments in the legislative process regarding the Amendment and will keep you informed. If you would like further information, please contact the authors of this article or other members of the EY team with whom you work.

Authors:

Dušan Kmoch

Magdalena Hamáčková