The European Commission approved the Polish support program for farmers worth EUR 836 million (PLN 3.9 billion) which means consent to subsidies for fertilizers, stated the Ministry of Agriculture and Rural Development.
The program will enable Poland to support farmers who have felt the effects of the increase in production costs resulting from Russia’s invasion of Ukraine and the related sanctions. “We remain in solidarity with Ukraine and its citizens. At the same time, we are continuing to work closely with the Member States to ensure that national support measures can be introduced in a timely and effective manner while safeguarding a level playing field in the Single Market”, said Margrethe Vestager, vice-president of the European Commission responsible for competition policy.
According to the information from the Commission, to compensate for part of the increase in fertilizer costs, eligible beneficiaries will be entitled to receive the aid of up to EUR 107, or PLN 500 per hectare of agricultural land, and up to EUR 53.5 or PLN 250 per hectare of grassland and pastures. The maximum aid limit will be the amount corresponding to an area of 50 hectares. Under the program, the aid will be offered as direct grants.
On March 23, 2022, the Commission adopted the Temporary Crisis State Aid Framework enabling the Member States to use the flexibility provided for in state aid rules to support the economy in the context of Russia’s invasion of Ukraine.
The Commission found that the scheme notified by the Polish authorities complies with the conditions set out in the Temporary Crisis Framework. In particular, the aid will not exceed PLN 35,000. euro per beneficiary; and will be granted by 31 December 2022 at the latest.
The Commission, considering the application of Poland, concluded that the program notified by the Polish government “is necessary, appropriate and proportionate, taking into account the necessity to remedy a serious disturbance in the economy of a Member State”.
Adrian Andrzejewski