‘We know very well that we must look after every farm because farmers have shown how important agricultural production is, during the pandemic and now in these difficult times of war in Ukraine and the economic and inflationary war with Europe. That is the reason why we are consistently implementing our programme for farmers, insurance programme for farmers and subsidy schemes, including the apple purchase programme,’ said Prime Minister Mateusz Morawiecki.

Nearly PLN 4 billion for fertiliser subsidies

The fertiliser subsidy scheme is one of the elements of the so-called Anti-Putin Shield. Its total value amounts to approx. PLN 3.9 billion. The funds come from the national budget, and the aid will take the form of direct subsidies.

This is a very important initiative. ‘One could say it is another expenditure from the budget. Yes, but it is also an investment to lower inflation in the future. All the analysts I talked to know that granting such a subsidy today will translate into lower grain prices in a few months,’ said the Prime Minister.

Support will be provided to farmers active in Poland and who have been affected by fertiliser price increases caused by the current geopolitical crisis and the related sanctions. A maximum of 50 ha of land will be eligible for funding. What will be the limits of support?

• PLN 500 per 1 ha of agricultural land,
• PLN 250 per 1 ha of meadows, pastures and grassland on arable land.

‘We want to cover price difference between fertilisers purchased from 1 September 2021 to 15 May 2022. Funds will be paid based on the price difference calculated on the basis of an invoice presented to the Agency for Restructuring and Modernisation of Agriculture,’ added Deputy Prime Minister, Minister of Agriculture and Rural Development Henryk Kowalczyk.

Favourable changes to agricultural pensions

The Council of Ministers has adopted a draft law that introduces favourable changes to agricultural pensions.

‘A farmer will be able to receive an agricultural pension regardless of whether they will hand over the farm or not. You will not have to hand over the farm in order to receive a pension. We announced this several months ago and we are now implementing this programme,’ emphasised the head of the government.

Based on the new rules, farmers who are retired will not have to give up farming to receive the full benefit. Currently, if a pensioner carries out agricultural activities, the payment of their pension is partially suspended.

However, that is not all. What else will change?

• Matters related to the overlapping of insurance entitlements from the agricultural and general social insurance systems will be settled. Farmers will be able to avoid unfavourable interruptions in social insurance coverage, which can be an obstacle, for example, when applying for aid under the common agricultural policy.
• It will be possible to include the time spent in active military service in the Polish Army in the amount of the contribution component of the agricultural pension
• Agricultural pensioners will be given the opportunity to undergo therapeutic rehabilitation in Rehabilitation Centres of the Agricultural Social Insurance Fund, and carers of persons with disabilities - to go on rehabilitation holidays.

Aid for apple growers

Russia's brutal aggression against Ukraine, the restriction of access to the Belarusian market and the introduction of an embargo on the import of agricultural products from the European Union on 1 January have caused distortions in the dessert apple market. To mitigate the effects of this situation, we have prepared draft solutions for fruit growers. The aid will take the form of subsidies to the sale of dessert apples sold for the food processing industry.

‘Next week, food processing plants will buy dessert apples and the difference in price in the amount of 30 grosz will be compensated,’ said the Minister of Agriculture and Rural Development.

A list of plants that will buy apples for industrial purposes will be published on the website of the Agency for Restructuring and Modernisation of Agriculture. ‘We will compensate farmers and fruit growers for the loss of income on the basis of this sales list,’ said Deputy Prime Minister Kowalczyk.

Crop and livestock insurance

The Minister of Agriculture and Rural Development has also encouraged farmers to insure their crops from the state budget: ‘The subsidy is 65% of the premium, so farmers only have to pay 35%. Choose a comprehensive insurance coverage, including drought.’

The budget provides for more than PLN 1.5 billion for subsidies to crop and livestock insurance for 2022.

The Ministry of Agriculture and Rural Development has concluded agreements on the granting of subsidies from the state budget to crop insurance premiums in 2022 with the following entities:

• Powszechny Zakład Ubezpieczeń S.A. with its registered office in Warsaw,
• Towarzystwo Ubezpieczeń Wzajemnych „TUW” with its registered office in Warsaw,
• Generali Towarzystwo Ubezpieczeń S.A. with its registered office in Warsaw,
• AGRO Ubezpieczenia Towarzystwo Ubezpieczeń Wzajemnych with its registered office in Warsaw,
• InterRisk Towarzystwo Ubezpieczeń SA Vienna Insurance Group with its registered office in Warsaw,
• TUZ Towarzystwo Ubezpieczeń Wzajemnych with its registered office in Warsaw,
• VH VVaG Towarzystwo Ubezpieczeń Wzajemnych Branch in Poland with its registered office in Poznań,
• Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A. with its registered office in Sopot.