At that time, we publicly bet with the Minister of Environment that the defense fund would not collect a billion from the sale of state agricultural land plots in the regions according to the scheme planned by the members of the Seimas. Not even a third of a billion would be collected. We made a bet. I hope it hasn’t been forgotten.
The authors of the idea to sell state land, the initiators of the amendments to the Agricultural Land Acquisition Act, whom I would call “K.Starkevičius and Co,” elevated by the euphoria about a noble mission, paid no attention to the specialists’ remarks.
At that time, we said that this project contained too many restrictions and constraints, and the 25% surcharge on the market value would further deter potential buyers. However, the land management policy makers obsessed with the idea ignored the remarks. The bill with all the restrictions, limitations, and the “fat” surcharge was adopted unanimously, with the votes of all 104 members of the Seimas present in the hall at that time. There were no abstentions. The current Minister of Agriculture, Kęstutis Mažeika, also voted for such a project. On November 13, 2025, in the morning session of the Seimas, his vote was in favor.
Now, having become a minister, Mr. K. Mažeika tries to explain that the sale of agricultural land to farmers is stalling not because of restrictions and surcharges, but due to “bureaucratic obstacles.” Understand bureaucrats’ clumsiness. A very popular saying, practically indisputable.
But what are the real reasons? What do the data show?
Indeed. The results are far from a billion. Only 2.6 million euros were collected for the state defense fund in the first half of this year. Instead of a billion, just a few million.
Let’s see how this process constructed by the land management policy makers works?
Only 2.6 million euros were collected for the state defense fund in the first half of this year. Instead of a billion, just a few million.
Read more Fast as F-1: Šiauliai swimmer who loves «Formula 1» rejoiced: «Mom will be proud of me»
Let’s start with the fact that there was really no buying frenzy for agricultural land. When presenting the idea “Let’s collect a billion for defense,” it was talked about a hundred thousand state agricultural land plots rented in the regions that could be sold. However, the real demand in the first half of the year was only 5,000 applications from 2,000 interested parties. Why was there no flood of buyers?
For rational and pragmatic farmers, buying land and then paying land taxes for it did not always seem attractive. Sometimes it is simply easier to rent. You rent, cultivate, and earn. Especially when the land rent in the regions is almost the same as the land tax.
Secondly – the law contains many restrictions and limitations on the acquisition of state agricultural land. For example, agricultural land cannot be sold in urbanized or urbanizing territories, cannot be sold in areas reserved for investment projects or military infrastructure, there are restrictions on the size of the land acquired, no installment payments – payment must be made immediately, and so on. Even the requirement for the buyer to have declared income from agricultural activities over the last three years often collided with banal everyday life. After all, not every farmer who sold a sack of potatoes or a turkey rushed to declare it to the State Tax Inspectorate. Because there was no such obligation.
And finally – the price. What is the point of buying an agricultural land plot based on an individual valuation plus a 25% surcharge? Unless it is a very special plot. After all, in the same real estate listings, plenty of agricultural land is sold without any surcharges. At the real market price. And you can even negotiate.
Even without a detailed ex-post analysis, it is clear that raising funds for defense from the sale of state agricultural land does not work due to numerous restrictions and excessive prices.
Hmm… Maybe that’s good. After all, selling your property to buy a weapon to defend it was a strange idea from the start.
