Poland is a country with a great agricultural production potential – a leader among 27 EU member states in this regard. Since Poland’s accession to the European Union, the conditions of our agriculture have been constantly improving. Farmers and agricultural manufacturers belong to the group which makes the best use of the available financial resources. The agricultural outlays in the national budget are also rising systematically. In 2005 they amounted to PLN 30.3 billion, while in 2010 to PLN 37.7 billion, and PLN 40.5 billion in 2011. The rural areas are developing, the infrastructure has been improved, new preschools, common rooms and playgrounds are being built all over Poland, and so are the facilities under the government program “My Soccer Pitch – Orlik 2012”.
Direct Payments
The Agency for Restructuring and Modernization of Agriculture will pay out PLN 12.8 billion in the form of direct and supplementary payments. In accordance with the EU provisions, this cash is paid out between 1 December and 30 June of the subsequent calendar year. As of February 2011, the amount of approx. has already been provided to the farmers. Another PLN 6.1 billion will be.
Pursuant to the Accession Treaty, Poland adapted the simplified system of direct payments. It means that we will have reached the 100% payment level by 2013. Due to historical reasons (such as the reference yield size), the formal leveling of payments does not mean that the Polish farmers will receive support equal to that obtained in the other EU member states. That is why the government began the battle for the implementation of changes in the Common Agricultural Policy (after 2013) as early as in 2008. The subject is being discussed in great detail. We opt for giving up the historic payment titles in favor of the CAP becoming clear and simple. We think both policy pillars should be maintained. A growing number of countries supports our point of view.
Rural Area Development Program
The Program stipulates the allocation of EUR 17.4 billion for the support of agriculture and rural areas between 2007 and 2013. The total amount of funds contracted under the concluded agreements and issued decisions (also in regard to multi-year activities) was more than PLN 40 billion by the end of 2010. It makes up about 58.5% of resources available between 2007 and 2013. At the same time, the payments for beneficiaries, amounting to the total of about PLN 20,6 billion, were made before the end of 2010 – i.e. over 28.5% of the program budget. All in all, more than 82% of the RADP initiative funds for the 2007-2013 period have already been allocated.
The program has helped farmers who inflicted damages in the 2010 flood. The money may be given to farms whose losses exceeded 30% of their average annual agricultural production and whose fixed assets were damaged in the amount of at least PLN 10 thousand. Farmers are eligible to be granted up to PLN 300 thousand for rebuilding and recreating their agricultural production (e.g. hop growing, pomiculture). They are expected to put in no less than 10% of their own resources.
Positive Foreign Trade Balance
In spite of the limited demand caused by the crisis, it was possible to obtain some very good foreign trade results. The value of agricultural goods exports for 2008 amounted to nearly PLN 41 billion, and close to PLN 49.6 billion for 2009, as compared to 38 billion in 2007 and 33.5 billion in 2006. The positive trade balance has been maintained – in 2009, it totaled over PLN 9.5 billion (PLN 7.7 billion for the whole 2007), and PLN 9.7 billion in the first 11 months of 2010. It is the only traded commodity group resulting in a positive balance in the foreign trade.
More Money within the CAP Framework
The government makes a strong and successful stand in the battle for money for the Polish farmers. Under the CAP provisions, Poland has been allowed to continue the present direct payments system until 2013 (it was supposed to expire in 2011), and an additional sum of EUR 90 million was secured to support, inter alia, the dairy industry. Moreover, approx. EUR 170 million has been earmarked for the rural areas to invest in the renewable energy sources and improved access to the broad band Internet.
The Common Agricultural Policy will be reformed after 2013. The government is already making proper plans in order to secure the interests of Polish farmers. In June 2009, the stance on the CAP changes was agreed upon. The government has underlined the necessity to eliminate the direct support level differences and ignore the historical conditions which disrupt competition through the unequal support offered to farmers from the particular EU member states.
Village Council Funds
Village council funds constitute an additional source of money for the rural areas. They are put aside in the commune budget for the village council to undertake investments which will improve the residents’ living standards. The money may be spent on building new playgrounds, repairing sidewalks, placing garbage bins, etc. The amount of funds for a given village council depends on the commune wealth. On the average, it is about PLN 10 thousand. The act on the village council funds has been effective since April 2009.
National Program for the Local Roads Reconstruction
In 2008, the government approved the National Program for the Local Roads Reconstruction. The program was planned for the years 2009-2011. Each year, the government allocates approximately PLN 1 billion for the building of local roads. The investments are financed in 50% by the government, and in another 50% by the self-governments. More than 2.8 thousand kilometers of commune and district roads should be modernized by the end of 2010. In 2009, over 2.7 kilometers of local roads have been constructed or modernized all over Poland. In 2010, more than 2.9 thousand kilometers of commune and district roads were modernized or built .
Easier Sales of Rural Grounds
In February 2010, the government approved the amendment to the act on the State Treasury agricultural property management. The amendment makes it easier to sell agricultural land, purchase land by individual farmers, and it calls for the quick sales of arable lands belonging to the State Treasury Agricultural Property. The pace of selling agricultural real estate will be accelerated thanks to the changes. It will be beneficial for the land buyers who will be allowed to apply for the payment prolongation up to 15 years, provided they have paid a minimum of 10% of the selling price. The draft act is currently being discussed by the Parliament.
Help for Farmers Harmed by the Flood
Almost 124 thousand farms, covering the area of nearly 780 thousand hectares, were flooded or deluged this year. Therefore, the government has drawn up a special support plan for the farmers. In June 2010, it passed a resolution regarding the support program for rural families whose households and special production facilities were damaged by the flood, landslides, and hurricanes in 2010. The program stipulates: preferential credits for resuming production, deferred KRUS (Agricultural Social Insurance Fund) payments, possibility of deferring (or splitting into installments) payments resulting from the purchase or lease of real estate from the State Treasury Agricultural Property, without any fees or interest for the deferral period. In addition, the rural families were provided with the social help in the form of a one-off allowance amounting to PLN 2000 (for families running farms up to 5 hectares of arable land or special production facilities), and PLN 4000 (for families managing arable lands of more than 5 hectares). The Rural Area Development Program (2007-2013) access criteria have been made less strict for the farmers from the flooded areas.
Direct Payments
The Agency for Restructuring and Modernization of Agriculture will pay out PLN 12.8 billion in the form of direct and supplementary payments. In accordance with the EU provisions, this cash is paid out between 1 December and 30 June of the subsequent calendar year. As of February 2011, the amount of approx. has already been provided to the farmers. Another PLN 6.1 billion will be.
Pursuant to the Accession Treaty, Poland adapted the simplified system of direct payments. It means that we will have reached the 100% payment level by 2013. Due to historical reasons (such as the reference yield size), the formal leveling of payments does not mean that the Polish farmers will receive support equal to that obtained in the other EU member states. That is why the government began the battle for the implementation of changes in the Common Agricultural Policy (after 2013) as early as in 2008. The subject is being discussed in great detail. We opt for giving up the historic payment titles in favor of the CAP becoming clear and simple. We think both policy pillars should be maintained. A growing number of countries supports our point of view.
Rural Area Development Program
The Program stipulates the allocation of EUR 17.4 billion for the support of agriculture and rural areas between 2007 and 2013. The total amount of funds contracted under the concluded agreements and issued decisions (also in regard to multi-year activities) was more than PLN 40 billion by the end of 2010. It makes up about 58.5% of resources available between 2007 and 2013. At the same time, the payments for beneficiaries, amounting to the total of about PLN 20,6 billion, were made before the end of 2010 – i.e. over 28.5% of the program budget. All in all, more than 82% of the RADP initiative funds for the 2007-2013 period have already been allocated.
The program has helped farmers who inflicted damages in the 2010 flood. The money may be given to farms whose losses exceeded 30% of their average annual agricultural production and whose fixed assets were damaged in the amount of at least PLN 10 thousand. Farmers are eligible to be granted up to PLN 300 thousand for rebuilding and recreating their agricultural production (e.g. hop growing, pomiculture). They are expected to put in no less than 10% of their own resources.
Positive Foreign Trade Balance
In spite of the limited demand caused by the crisis, it was possible to obtain some very good foreign trade results. The value of agricultural goods exports for 2008 amounted to nearly PLN 41 billion, and close to PLN 49.6 billion for 2009, as compared to 38 billion in 2007 and 33.5 billion in 2006. The positive trade balance has been maintained – in 2009, it totaled over PLN 9.5 billion (PLN 7.7 billion for the whole 2007), and PLN 9.7 billion in the first 11 months of 2010. It is the only traded commodity group resulting in a positive balance in the foreign trade.
More Money within the CAP Framework
The government makes a strong and successful stand in the battle for money for the Polish farmers. Under the CAP provisions, Poland has been allowed to continue the present direct payments system until 2013 (it was supposed to expire in 2011), and an additional sum of EUR 90 million was secured to support, inter alia, the dairy industry. Moreover, approx. EUR 170 million has been earmarked for the rural areas to invest in the renewable energy sources and improved access to the broad band Internet.
The Common Agricultural Policy will be reformed after 2013. The government is already making proper plans in order to secure the interests of Polish farmers. In June 2009, the stance on the CAP changes was agreed upon. The government has underlined the necessity to eliminate the direct support level differences and ignore the historical conditions which disrupt competition through the unequal support offered to farmers from the particular EU member states.
Village Council Funds
Village council funds constitute an additional source of money for the rural areas. They are put aside in the commune budget for the village council to undertake investments which will improve the residents’ living standards. The money may be spent on building new playgrounds, repairing sidewalks, placing garbage bins, etc. The amount of funds for a given village council depends on the commune wealth. On the average, it is about PLN 10 thousand. The act on the village council funds has been effective since April 2009.
National Program for the Local Roads Reconstruction
In 2008, the government approved the National Program for the Local Roads Reconstruction. The program was planned for the years 2009-2011. Each year, the government allocates approximately PLN 1 billion for the building of local roads. The investments are financed in 50% by the government, and in another 50% by the self-governments. More than 2.8 thousand kilometers of commune and district roads should be modernized by the end of 2010. In 2009, over 2.7 kilometers of local roads have been constructed or modernized all over Poland. In 2010, more than 2.9 thousand kilometers of commune and district roads were modernized or built .
Easier Sales of Rural Grounds
In February 2010, the government approved the amendment to the act on the State Treasury agricultural property management. The amendment makes it easier to sell agricultural land, purchase land by individual farmers, and it calls for the quick sales of arable lands belonging to the State Treasury Agricultural Property. The pace of selling agricultural real estate will be accelerated thanks to the changes. It will be beneficial for the land buyers who will be allowed to apply for the payment prolongation up to 15 years, provided they have paid a minimum of 10% of the selling price. The draft act is currently being discussed by the Parliament.
Help for Farmers Harmed by the Flood
Almost 124 thousand farms, covering the area of nearly 780 thousand hectares, were flooded or deluged this year. Therefore, the government has drawn up a special support plan for the farmers. In June 2010, it passed a resolution regarding the support program for rural families whose households and special production facilities were damaged by the flood, landslides, and hurricanes in 2010. The program stipulates: preferential credits for resuming production, deferred KRUS (Agricultural Social Insurance Fund) payments, possibility of deferring (or splitting into installments) payments resulting from the purchase or lease of real estate from the State Treasury Agricultural Property, without any fees or interest for the deferral period. In addition, the rural families were provided with the social help in the form of a one-off allowance amounting to PLN 2000 (for families running farms up to 5 hectares of arable land or special production facilities), and PLN 4000 (for families managing arable lands of more than 5 hectares). The Rural Area Development Program (2007-2013) access criteria have been made less strict for the farmers from the flooded areas.