The main objective of financing current activity is to maintain financial liquidity, in particular, during idle periods in agriculture. Investment credits are to increase the value of existing productive capacity. Supplementation of own resources with a preferential credit is necessary during periods of agriculture restructuring and modernization.

The article aims at analyzing changes in lending to agriculture in Germany and Poland. Based on the analysis of farms in Germany it may be assumed that in 1994-1997 the number of farms decreased in old lands and increased in new ones. It must be stressed that despite the number of farms increased in old lands their total number in Germany went down by about 10% in the period considered.

In 1994-1997, in Germany total value of lending grew by 15.3%. Its structure, i.e. breakdown by short-, medium- and long-term credits, is very specific. Long- and medium-term credits extended for over 4 years accounted for more than 84% of total credits. It may be explicitly assumed that the share of investment credits to agricultural sector is high. It may also be stressed that the value of credits extended reveals an increasing trend, and their structure remains stable. Major banks that used to lend to agriculture in Germany were cooperative ones: Volksbank and Reiffeisenbank, and savings banks.

Based on the analysis of credits extended by the Agency for Agriculture Restructuring and Modernization, in Poland the structure of credits extended was quite different. In 1995-1997 percentage share of investment credits was visibly increasing. In most favorable 1997 investment credits accounted, however, for slightly more than 30% of total credits. Based on the structure of lending to agriculture one can observe considerable interest in credits for financing current activity. It should also be stressed that among investment credits loans for young couples used to be most popular in Poland.

As a conclusion an increase in credits' value has been noted in the period discussed both in Poland and Germany. In both countries they were cooperative banks who played an important role in the lending activity.