In order to reconcile agricultural production and environmental aims, as well as allow for the diversification of agricultural production, the countries of the European Union introduced a new concept for the European Model of Agriculture – Agenda 2000. The model involves modernising and changing the of structures of agricultural farms to increase profitability, to protect and preserve the value of the natural landscape, and to develop the technical and social infrastructure in rural areas. Land consolidation is an important tool to implement the multifunctional development of rural areas, and corresponding land consolidation reforms have been introduced. In Poland, land consolidation legislation is defined by the act on land consolidation and exchange of 26 March 1982, and Polish Standard PN-R-04151:1997. The document specifying the reallocation of Polish rural areas is "The strategy of development of rural areas for the years 2007–2013", prepared by the Ministry of Agriculture and Development of Rural Areas. The document consists of: economic development to increase the attractiveness of rural areas and sustainable economic development which retains the balance of the natural environment, cultural heritage, and marginal land management. One land consolidation project to implement multifunctional development of a rural area was analyzed using the example of the village of Łuków. This paper presents the improvement of the arable field melioration system and the execution of buffer zones, tree planting, and agriculture-forest boundaries. In the countries of the European Union, the existing model of agricultural production reveals the need for multifunctional development of rural areas, which will aid in the protection of the environment and reshape the agricultural landscape and also provide opportunities for alternative sources of income. Polish legal regulations and formal assumptions have enacted the implementation of the multifunctional development model, but not all elements have been dealt with in a sufficient manner, especially concerning land consolidation.

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