The government is advancing changes to support farm infrastructure and provide loans for agricultural inputs. The package includes a PLN 445 million allocation from the state treasury to back loans for farmers buying farm supplies such as fertilizers and plant protection products, alongside amendments to the law governing state agricultural property and the construction act. The amendments were approved by the Sejm on Tuesday.
Sejm votes on the loan law for farmers
In a clear majority, 429 deputies supported the amendment, with two voting against and 14 abstaining. The bill now moves to the Senate for review.
Earlier debates saw opposition attempts to narrow the scope of the amendment. The KO bloc proposed limiting the provisions to the construction of storage facilities. The ruling coalition favored keeping the building permit but pushed for a seven day deadline for permit issuance.
Poland 2050 argued that provisions concerning rail transport should be removed from the law, not agricultural matters. The government had introduced the self amendment to align with EU rules on rail passenger rights and to fulfil a KPO component aimed at improving transport accessibility. Officials noted that EU regulations allow member states to limit certain rail passenger services exempt from the regulation, and theAutocorrect adjustment addressed this point.
The approved amendment also creates an exemption from permit requirements for constructing above ground silos for bulk solids with a capacity up to 250 cubic meters and a height up to 15 meters, as well as single storey outbuildings and sheds used in agricultural production with built up area not exceeding 300 square meters, a construction span up to 7 meters, and a height not exceeding 7 meters. These structures must be located entirely on the designated plots. The measure also covers storage facilities for grain with a maximum capacity of 5 000 tons located entirely within seaports that are fundamental to the national economy. Such investments will be subject to reporting obligations.
The amendments also direct that PLN 445 million drawn from the 2023 excess funds from the state agricultural land stock will not be transferred to the state budget but will support loans for the purchase of agricultural inputs including fertilizers and plant protection products as well as the purchase, storage, or processing of agricultural products.
The Sejm approves an amendment increasing the excise tax refund included in the price of agricultural fuel
On Tuesday the Sejm approved the law on increasing the excise tax refund included in agricultural fuel prices with no changes. The reform allows producers of pigs, sheep, goats and horses to benefit from a higher refund rate of PLN 2 per liter. The vote tally was 447 in favor, with one against.
Public finance and agriculture committees had tabled clarifications earlier in the day to reduce interpretation doubts. The act also introduces a cap on diesel use for pig, sheep, goat and horse producers who qualify for the fuel refund and manage at least one hectare of farmland.
For pig farmers the refund cap is set at four times the per liter refund rate, based on PLN 1.20 per liter in 2023 and the producer’s average annual pig stock from the previous year. For sheep, goats and horses the cap is 40 times the per liter refund rate with a similar calculation based on large converted units kept by the farmer in the previous year.
Additionally, from August 1 to 31, the refund rate stands at PLN 1.46 per liter with a supplementary aid of PLN 0.54 for eligible producers, subject to European Commission approval. The package is projected to cost the budget PLN 1.11 billion for 2023 through 2032, with PLN 616 million allocated in 2023.
Sejm approves the Agricultural Protection Fund Act
On Tuesday the Sejm enacted the Agricultural Protection Fund Act, which establishes a guarantee fund to compensate farmers who do not receive payments from buyers, storers, or processors of agricultural products. The bill has been forwarded to the Senate.
Out of 447 deputies voting, four opposed the measure and 207 abstained. Opposition amendments were rejected, including KO’s request to set the law to take effect from January 1, 2024 for tax purposes and the coalition’s attempt to remove fund contributions from purchasers of agricultural products. Proponents argued that such payments could be passed on to farmers, while the coalition proposed funding the fund through the National Agricultural Support Center in addition to national budget resources.
The Agricultural Protection Fund is designed to compensate producers when a buyer, storage, or processing entity goes bankrupt and fails to make required payments. The fund will be managed as a separate bank account by the National Agricultural Support Center, which will oversee legal, technical, and administrative support, prepare a financial plan, and report on implementation.
Fees of 0.125 percent of the value of purchased agricultural products, excluding VAT, will be charged to entities involved in storage, processing, or handling. The law also provides for co financing from the state budget for the first two years of operation, up to PLN 50 million in 2023 and PLN 100 million in 2024, and has been notified to the European Commission as a state aid scheme. It is scheduled to take effect on July 1, 2023, with payments to the fund beginning in the second quarter of 2024.
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