The European Commission has approved a support scheme for the Polish agriculture sector worth €836 million.
The commission rubberstamped the financial aid for farmers in Poland in response to rising fertiliser costs due to the ongoing Russian invasion of Ukraine.
The scheme was approved under the state aid temporary crisis framework which was adopted by the commission on March 23, 2022.
The commission found that the supports for Polish farmers are in line with the conditions set out in the temporary crisis framework.
This means that the aid will not exceed €35,000 per beneficiary and be granted no later than December 31, 2022.
It concluded that the proposal was “necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state”.
Under the Polish scheme, the aid will take the form of direct grants and will be open to farmers affected by the increase of fertiliser costs caused by the current geopolitical crisis and the related economic sanctions.
Eligible farmers will be entitled to receive aid up to €107 per hectare of agricultural land and up to €53.50 per hectare of grassland and pasture. The aid will be capped at the amount corresponding to 50 hectares.
Commenting on the approval of the supports, European Commissioner for Competition, Margrethe Vestager, said:
“This €836 million scheme will enable Poland to support the farmers affected by the input costs increase caused by Russia’s invasion of Ukraine and the related sanctions.
“We continue to stand with Ukraine and its people.
“At the same time, we continue working closely with member states to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the single market,” Vestager explained.
German support scheme
Meanwhile, the EU Commission has approved scheme worth up to €20 billion to support German companies impacted by Russia’s invasion of Ukraine.
The scheme, which will be open to all firms apart for the financial sector, was also approved under the state aid temporary crisis framework.
The aid will be provided on a limited basis through a range of measures, including: direct grants; tax or payment advantages; repayable advances; guarantees; loans; equity; and hybrid financing.
The support will be capped at €35,000 per beneficiary in the primary production of agricultural products and €400,000 per company in all other sectors.
“With this up to €20 billion scheme, Germany will support companies across all sectors affected by the current crisis and the related sanctions,” Vestager said.