Today, the European Commission approved the Polish scheme worth 836 million euros (3.9 billion zlotys) designed to support the agricultural sector in the context of the Russian invasion on Ukraine, which means that farmers will be able to apply for funding to buy fertilisers.
This scheme was approved based on the provisions of the temporary crisis framework regarding state aid, adopted by the Commission on 23 March 2022.
“This €836 million scheme will enable Poland to support the farmers affected by the input costs increase caused by Russia’s invasion of Ukraine and the related sanctions. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market,” said Margrethe Vestager, in charge of competition policy.
Polish aid fund
After some, let’s say it – perturbations, at the beginning of April, Poland submitted to the Commission a scheme worth 836 million euros aimed at supporting the agricultural sector in the context of Russia’s invasion of Ukraine.
Under this scheme the aid will have the form of direct subsidies.
This aid will be provided to farmers in Poland who have been affected by increased fertiliser prices caused by the current geopolitical crisis and related sanctions.
To cover part of the increased fertiliser prices, eligible beneficiaries will be entitled to receive aid in the amount of up to 107 euros (500 zlotys)* per hectare of arable land and up to 53.5 euros (250 zlotys)* per hectare of grazing land and grassland. Upper aid limit will correspond to the sum of aid for the area of 50 hectares.
Commission’s opinion
The Commission decided that the scheme submitted by Polish authorities is consistent with the terms of the temporary crisis framework. In particular, this form of aid will not exceed the sum of 35 000 euros per beneficiary and it will be awarded by 31 December 2022.
The Commission has also decided that the scheme submitted by Poland is necessary, due, and proportional to the need deal with severe disruptions to a member state’s economy, so it has approved this aid measure based on EU principles of state aid.
