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agriculture and food economy in poland

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NATIONAL SUPPORT INSTRUMENTS<br />

So far mechanisms regulat<strong>in</strong>g <strong>agriculture</strong> <strong>in</strong> Pol<strong>and</strong> have comb<strong>in</strong>ed market<br />

<strong>in</strong>struments with state <strong>in</strong>tervention.<br />

Aid was provided to <strong>agriculture</strong> primarily through national budget subsidies.<br />

Despite numerous <strong>agriculture</strong> support <strong>in</strong>struments, aid received by Polish<br />

agricultural producers <strong>in</strong> the previous years rema<strong>in</strong>ed at a much lower level than <strong>in</strong><br />

other countries. Accord<strong>in</strong>g to OECD, the Producer Subsidy Equivalent (PSE) for<br />

agricultural producers, show<strong>in</strong>g the percentage share of all forms of subsidies <strong>in</strong> the<br />

f<strong>in</strong>al production value, was one of the lowest <strong>in</strong> the world.<br />

Table 23. Producer Subsidy Equivalent for agricultural producers <strong>in</strong> selected countries <strong>in</strong> 1986-2003 (%)<br />

Source: Agra Europe 2004 No 2109, p. EP/4<br />

AGRICULTURAL POLICY<br />

Specification 1986-88 2001 2002 2003<br />

OECD average 37 31 31 32<br />

EU average 39 34 35 37<br />

USA 25 23 19 18<br />

Hungary 16 22 33 27<br />

Czech Republic 31 23 25 27<br />

Pol<strong>and</strong> 11 15 14 9<br />

State aid was provided ma<strong>in</strong>ly through the follow<strong>in</strong>g <strong>in</strong>struments:<br />

- subsidies to <strong>in</strong>terest on work<strong>in</strong>g capital bank<strong>in</strong>g credit for the purchase of<br />

agricultural <strong>in</strong>puts (fertilisers, plant protection agents, animal feed<strong>in</strong>gstuffs,<br />

fuel, etc.) <strong>and</strong> purchase of seasonal agricultural produce (cereals, potatoes, oil<br />

crops, sugar beets, fruit <strong>and</strong> vegetables, seeds) as well as storage of certa<strong>in</strong><br />

commodities<br />

- subsidies to <strong>in</strong>terest on <strong>in</strong>vestment bank<strong>in</strong>g credit for <strong>agriculture</strong> (<strong>in</strong>clud<strong>in</strong>g<br />

l<strong>and</strong> purchase <strong>and</strong> sett<strong>in</strong>g up agricultural hold<strong>in</strong>gs by young farmers), <strong>food</strong><br />

process<strong>in</strong>g <strong>and</strong> services for <strong>agriculture</strong> <strong>and</strong> for entrepreneurship development<br />

<strong>and</strong> creation of new jobs <strong>in</strong> rural areas<br />

- subsidies to credit to alleviate natural disaster consequences <strong>in</strong> <strong>agriculture</strong><br />

- guarantees <strong>and</strong> endorsements for <strong>in</strong>vestment credit repayment<br />

- subsidies to biological advancement <strong>in</strong> plant <strong>and</strong> animal production<br />

- subsidies to agricultural hold<strong>in</strong>gs <strong>in</strong>volved <strong>in</strong> organic farm<strong>in</strong>g<br />

- subsidies to plant protection, ma<strong>in</strong>tenance of hydromelioration facilities,<br />

control of <strong>in</strong>fectious animal diseases, etc.<br />

- f<strong>in</strong>ancial support for research <strong>and</strong> application the results thereof <strong>in</strong> <strong>agriculture</strong><br />

<strong>and</strong> agri-<strong>food</strong> process<strong>in</strong>g<br />

- subsidies to diesel fuel used <strong>in</strong> agricultural hold<strong>in</strong>gs for the purposes of<br />

agricultural production<br />

- agricultural tax preferences <strong>and</strong> exemptions<br />

57

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