For us, the Polish rural areas are more than just a reservoir of great values, traditions, faith and culture. They also constitute a highly modern sector of the economy. They mean hope for export and our food security. We will defend Polish rural areas – stressed Prime Minister in the Sejm

Funds for the development of agriculture and rural areas

The government has been regularly increasing expenditure on the support of agriculture. The next year’s draft budget allocates more than PLN 57 bln for that purpose. Funds from the cohesion policy will also be directed to rural areas. This means increasing the amounts from the Common Agricultural Policy that will reach farmers.

Prime Minister Mateusz Morawiecki reminded that the government has negotiated EUR 34.5 bln of European funds for the Polish rural areas. –That is more than ever since our accession to the EU – he emphasised.

Large amounts are also allocated to combat African Swine Fever (ASF). While in 2014, PLN 18.1 mln were expended for measures related to ASF, the government will allocate PLN 195.7 mln for that purpose in 2021.

The Polish Deal for Agriculture

Under the Polish Deal programme, an extensive support programme for agriculture and rural areas is planned. We will introduce, among others, higher subsidies to agricultural fuel and make it easier for farmers to sell their products directly to consumers.

From 1 January 2022, farmers will benefit from a higher rate of subsidies to agricultural fuel:

• the limit on diesel fuel consumed for farm work will be increased from 100 to 110 litres per 1 ha of agricultural land;
• the limit on diesel fuel consumed per 1 animal unit (AU) will also increase from 30 l to 40 l;

Changes will also concern agricultural retail trade (Pol. Rolniczy Handel Detaliczny –RHD). At present, farmers can only trade within a single province – where their production activities are conducted or, possibly, in a neighbouring province.

• After this provision is changed, it will be possible for farmers who engage in RHD to sell food to retail establishments, such as shops, restaurants or canteens throughout Poland.
• We will increase the amount of income exempt from income tax from PLN 40 thousand to PLN 100 thousand. This applies to income from the sale of plant and animal products processed in a non-industrial process (except for products obtained from special branches of agricultural production and products subject to excise duty).

In the nearest future, we will also propose to extend the agricultural crop insurance system. This means proposing specific legal solutions that will offer truly protect farmers.