Agricultural producers in Poland are to receive support of over €350 million in the context of Russia’s war against Ukraine, the European Commission has announced.
This latest funding boost to benefit Polish farmers includes a €346 million scheme as well as a €11 million scheme, which have separately been approved by the commission.
The €346 million scheme will consist, in limited amounts, of aid in the form of subsidised interest rates on loans to support farmers’ liquidity needs affected by the current geopolitical crisis.
Under the €11 million scheme, the aid will consist in limited amounts of aid in the form of direct grants, which have been totally funded through the Polish Agricultural Protection Fund.
The measure aims to compensate agricultural producers affected by the insolvency of a purchasing entity caused, among others, by the current geopolitical crisis.
Poland
Farmers from countries bordering Ukraine, including Poland, recently took to the streets in Brussels to protest against imports of agricultural and food products from the country.
The extended suspension of import duties, quotas and trade defence measures on Ukrainian exports to the EU for another year until June 2024 is of particular concern for farmers.
EU imports of wheat from Ukraine increased from 300,000t in 2021 to 3.0 million tonnes last year. Maize imports rose from 7.4 million tonnes before the war to 12.2 million tonnes in 2022.
Poland’s imports of wheat, maize and rapeseed saw a significant increase from 2,375t to 500,008t; from 5,863t to 1.84 million tonnes; and from 78,077t to 657,585t respectively.
Both Polish schemes were approved under the State Aid Temporary Crisis and Transition Framework. Aid will not exceed €250,000/beneficiary and will be granted no later than December 31, 2023.
The framework aims to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies, the commission said.
The new framework amends and prolongs in part the Temporary Crisis Framework, adopted in March 2022 to enable member states to support the economy amid the current geopolitical crisis.
EU farmers
Meanwhile, the European Commission has also approved a €31 million scheme to support the livestock and crops production sectors in Croatia in the context of Russia’s war against Ukraine.
The scheme will consist, in limited amounts, of aid in the form of direct grants to support the liquidity needs of livestock farmers and crop producers affected by the current geopolitical crisis.
The primary agricultural production sector in Bulgaria will receive €8 million in the context of Russia’s war against Ukraine. The aid will consist, in limited amounts, of aid in the form of direct grants.
The measure aims to support farmers that are currently facing liquidity shortages due to the cost increase of water, a key input for agricultural production, and thus ensure food security, the commission said.