News Drought 2018
Polish farmer gets 230 euros compensation
Like many other European countries, Polish agriculture has also suffered greatly from this year's drought. The government therefore compensates the arable farmers with a maximum amount of €230 per hectare.
The Polish Ministry of Agriculture reports that approximately 130.000 farms have been affected by the dryness† The damage amounts to approximately €820 million (Zoty 3,6 billion). This means that the yield on 3,5 million hectares is lower than average. In grain the yield is 14% lower, for rapeseed it is 16% and for vegetable crops 8%. The higher prices partly compensate for the lack. The government expects the wheat price to have increased by 12% at the end of November.
With a crop such as potatoes, the damage is even greater. According to the ministry, half of the acreage has suffered from the drought. They write about 10% to 15% less kilos, but insiders estimate the damage to be greater. They expect the yield to be at least 25% lower than in 2017.
820
million euros
€230 to €57,50 per hectare
The government pays farmers compensation for the damage. If the yield is at least 70% lower, a grower will receive the full compensation amount. This equates to 1.000 zÅ‚oty (€230 per hectare). If the farmer does not have comprehensive weather insurance, 50% of the amount is paid out. If the loss in yield amounts to 30% to 70%, the insured farmers will be paid €115 per hectare. That is half without insurance. The compensation applies to arable crops. Grassland has no financial compensation.
In addition to compensation, mitigation measures have also been introduced. The companies with less than 30% loss of revenue can qualify for lower rents and a reduction in taxes. By September 25, 38.000 companies had turned to the government for support. There are more than 20.000 reports of companies losing more than 70% in revenue.
Additional measures
The European Commission is still taking a decision on whether to pay out funds from the Common Agricultural Policy early. A derogation has already been granted for sowing a green manure. This should ensure that more roughage crops are sown; livestock farmers can benefit from this. Finally, arable farmers can receive subsidies for investments (with regard to irrigation). In practice, however, little use is made of this.
Apart from the measures to deal with current problems, more needs to be done in the long term. Much Polish agricultural land is sandy soil of poor quality and with a high drought sensitivity. The Dutch Embassy supports Dutch companies that provide knowledge about soil quality and fertilization.
Niels van der Boom
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