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agriculture and food economy in poland

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AGRICULTURAL POLICY<br />

Rural Areas Development Plan (RADP)<br />

To implement the Plan, Euro 3 563 million will be allocated <strong>in</strong> 2004-2006,<br />

<strong>in</strong>clud<strong>in</strong>g Euro 2 866.4 million from the EU <strong>and</strong> Euro 696.6 million from the<br />

national budget.<br />

The follow<strong>in</strong>g programmes will be carried out under the Plan:<br />

- structural early retirement pensions aimed at replacement of generations<br />

<strong>in</strong> <strong>agriculture</strong> <strong>and</strong> improvement of the agrarian structure. The structural<br />

pension rate is determ<strong>in</strong>ed as a relevant percentage of the lowest old-age<br />

pension. Depend<strong>in</strong>g on the size of the farm to be transferred or the number of<br />

people (a farmer or a farmer <strong>and</strong> his wife), the basic amount of pension will<br />

range from 210% to 440% of the lowest pension (i.e. given that on 1 March<br />

2004 the lowest pension <strong>in</strong> Pol<strong>and</strong> was set at PLN 562.58, the structural<br />

pension will range from PLN 1 181 to PLN 2 475)<br />

- support for semi-subsistence farms, i.e. assistance for farms of small<br />

economic potential amount<strong>in</strong>g to 1 250 euro/farm annually. After the third<br />

year, the beneficiaries will have to prove that they have exp<strong>and</strong>ed their<br />

production<br />

- support for farm<strong>in</strong>g <strong>in</strong> LFA to compensate for unfavourable natural<br />

conditions <strong>and</strong> to counteract depopulation of rural areas <strong>and</strong> the loss of their<br />

agricultural character.<br />

The support rate will range, depend<strong>in</strong>g on difficulties <strong>in</strong> l<strong>and</strong> cultivation <strong>and</strong> its<br />

location, from 56 to 68 Euro/ha. LFA payments will be reduced for farms with an<br />

area over 50 ha <strong>and</strong> those with an area over 300 ha will not be eligible for such<br />

payments at all<br />

- support for agri-environmental measures <strong>and</strong> improvement of animal<br />

65

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