Budget 2016 is an opportunity for Polish agriculture

| Polish Market |

In their draft budget for 2016, the Polish government allocated almost 54 billion zloty to agriculture. The aim is to provide agricultural entrepreneurs an opportunity to continue developing their farms, based on financing from the national budget as well as EU funds.

A good period for Polish agriculture

The members of the government believe that most funds in this sector of the economy should help fulfill the objectives adopted by the Ministry of Agriculture, aiming at improving the potential of domestic agricultural production. The budget includes 8.5 billion PLN for the so-called special purpose funds and over 18 billion PLN of the subsidy for The Agricultural Social Insurance Fund (KRUS). European Union funding provides additional source of financing of agricultural production and new projects. EU contribution is expected to reach 27 billion PLN.

The objectives of budget funding

The budget solutions are meant to foster rural development, and as much as 72% of the sum assigned to agriculture is allocated to development projects, including the activity of The Agency for Restructuring and Modernisation of Agriculture (ARMA). This institution helps to adjust to changes in Common Agricultural Policy and to increase the absorption of EU funding by Polish agricultural manufacturers by 2020.

Subsidies to agricultural fuel are certainly going to be provide much support. The Ministry of Agriculture allocated 60 million PLN more to this end than in 2015. Also, more resources were assigned for the activity of inspectorates which monitor the quality of food produced in Poland, which is important in the context of the exportation of Polish food to international markets. One of the elements we draw the readers’ attention to in the blog is supporting agricultural education and advisory services. The Ministry of Agriculture also allocated more funds for the purpose, namely by 2.2% more than in 2015.

Changes Polish farmers need to prepare for

The fertilizer-chemical sector is monitoring the changes in the Polish countryside, and paying particular attention to the goals, which domestic agricultural manufacturers face in the years to come. The present agricultural budget is meant to level off the competition conditions between the so-called “old” European Union countries and Poland. The Ministry of Agriculture also intends to stabilize the situation on agricultural markets. As a result of this activity, the financial condition of the farms should improve, and the revenue of agricultural producers should grow.