Polish countryside is becoming more affluent

| Polish Market |

The Central Statistical Office of Poland presented data about the increase of wages in particular sectors of the national economy. We should pay particular attention to the growing income in agricultural and fishery industries.

Historical heritage

Prior to joining the European Union, agricultural manufacturers in Poland struggled with numerous problems resulting from the transition from the communist system to the capitalist economy. Rural overpopulation was one of the key challenges, while others included a large number of small farms and inadequate technological advancement of agricultural machinery and practice.

Since 2004 agricultural production has been growing in our country, and the economic situation of farmers has been improving. Average income in agriculture has been rising, the number of small farms has been decreasing, and profitable farms have been taking their place. The economic situation of farmers has been looking up. The growth in the sector has been accelerated thanks to cooperation between farmers and exchange of knowledge, which is visible in the growing availability of various training opportunities and advisory services, also with regard to setting up production cooperatives. Those activities have a huge impact on the condition of the sector and its competitiveness on the common EU market.

Agriculture is one of the pillars of economy

According to Central Statistical Office, there are about 2 million farmers in Poland today. Almost 75% of them take advantage of EU subsidies. Financing from various development-oriented projects as well as direct subsidies made it possible for farmers to invest in their businesses and improve the technological level of agricultural production. At the same time, the average revenue of farmers grew. Once one of the least well-off groups of the society in the first years of the 21st century, farmers are now one of the wealthiest groups of the Polish society in early 2016.

Opinion of PUŁAWY Competences Center experts

In 2014 PUŁAWY Competences Center prepared a report called “25 years of Polish agriculture. Food security in Europe”. In the document, we drew attention to a series of changes in Polish agriculture in the past 25 years. A few factors highlighted in the report are worth mentioning here, as they are certain to make an impact on the economic situation of Polish farms. The difference between the incomes of farmers in Poland and those in other EU countries has been decreasing systematically. Polish farmers are reluctant to sell off land, and more likely to form and join production cooperatives, which provides an advantage in tender bidding. In this way, market participants can make farms better-off and more profitable.

Income of Polish farmers is likely to grow in the years to come. This forecast is based on the suggestions of analysts who believe that the position of our country among the market of major agricultural manufacturers is to continue improving systematically until 2020.