ANNOUNCEMENT 05 Feb 2015
In February 2015, the Polish government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Poland under the European Agricultural Guarantee Fund (EAGF) 2014-2020.
NUMBER OF INTERVENTIONS
ISAP – Polish Internet System of Legal Acts, “Dz.U. 2015 poz. 308 - Ustawa z dnia 5 lutego 2015 r. o płatnościach w ramach systemów wsparcia bezpośredniego”, [Journal of Laws 2015 item 308 – Act of February 5, 2015 on payments under direct support schemes]. Available at: http://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20150000308/O/D20150308.pdf
Journal of Laws of the Republic of Poland, “DZIENNIK USTAW 2015 R. POZ. 352 - Rozporządzenie Ministra Rolnictwa i Rozwoju Wsi z dnia 12 marca 2015 r. w sprawie szczegółowych wymagań, jakie powinny spełniać wnioski w sprawach dotyczących płatności w ramach systemów wsparcia bezpośredniego”, [JOURNAL OF LAWS OF 2015, ITEM 352 - Regulation of the Minister of Agriculture and Rural Development of 12 March 2015 on the detailed requirements to be met by applications regarding payments under direct support schemes]. Available at: https://dziennikustaw.gov.pl/D2015000035201.pdf
On 5 February 2015, Poland announced Act Item 308 of 2015 on Payments Under Direct Support Schemes establishing the eligibility criteria and requirements of the direct income payment scheme. Under the support scheme, eligible local farmers receive direct income payments under the European Agricultural Guarantee Fund (EAGF). The 2015-2020 budget for these Polish payments has a total value of EUR 15.1 billion (approx. USD 17.3 billion) established by Regulation (EU) No 1307/2013 of 20 December 2013, see related state act.
Income support measures to farmers take the form of financial grants. According to Regulation (EU) No 1307/2013, beneficiaries are active farmers that meet minimum requirements further specified by the Member States. In the case of Poland, Act Item 308 of 2015 and the Polish Ministry of Agriculture and Rural Development’s related Regulation on “Detailed Requirements to be Met by Applications Regarding Payments Under Direct Support Schemes” (Item 352) establishes eligibility criteria and requirements to be met by national applicants. The additional requirements are related to the area of crops, agricultural activity, and environmental practices. The scheme also sets incentives for young farmers.
The payments will be managed by the Agency for Restructuring and Modernisation of Agriculture (ARMA) – a Polish entity established in 1994 with the aim to support agriculture and rural development in Poland. ARMA has been designated by the Government of Poland to perform the role of an accredited paying agency.
The measure entered into force on 15 March 2015 and it shall be applicable during the 2015-2020 period. Previous to that, Poland was financing its income support payments primarily from the 2007-2013 budget of the EAGF which was established under a different subset of rules.
EU's CAP framework
The CAP framework is the EU-wide agricultural policy established in 1962 that is subject to reforms and new rules every six years. According to the EU, it aims to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food. Under the CAP, Member States provide three main types of support to the agriculture sector: (i) income support measures, (ii) market measures; and (iii) rural development measures. The two first are primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).