News Fertilizer
Polish farmer receives more than 100 euros fertilizer subsidy
The European Commission has approved a Polish subsidy scheme worth €836 million. Poland will distribute this money among farmers in the country who can buy fertilizer with it. Arable farmers are eligible for more than €100 per hectare. That is more than €50 for fertilizer on grassland.
At the beginning of March, the Polish government argued for a cost reduction for farmers in the country. One of the biggest pain points is the sky-high price of fertilizer. Even the Prime Minister got involved in the debate. With Janusz Wojciechowski as European Commissioner for Agriculture in Brussels, Poland has a strong voice in the political capital. The European Commission has now approved the scheme, as was 19 April published.
Guarding the level playing field
The €836 million, converted 3,9 billion złoty, falls under the crisis program that the Commission has set up in response to the war in Ukraine. A fertilizer subsidy can also be included in this, says Vice-President Margrethe Vestager. "This scheme ensures that Polish farmers are supported in the consequences of the Russian invasion of Ukraine. At the same time, we work closely for coordination with the Member State and monitor the level playing field in the common market."
For use on arable land, agricultural companies are eligible for €107 per hectare. For grassland that is €53,50. There is a maximum ceiling of 50 hectares. This makes it especially a (modest) outcome for small farmers in the country. Partly because of this rule, the EC has also approved the scheme. There is a ceiling of €35.000 for crisis support and the amount must be paid out before the end of this year.
Fertilizer price dropped sharply
Meanwhile, fertilizer prices in the country have fallen sharply in a month and a half, although they remain extremely high. One tonne of ammonium nitrate from the Azoty group – the second largest nitrogen producer in Europe – now costs PLN 3.600. That is converted €777. At the beginning of March, that price was still briefly at €1.284 (6.100 zoty). Other suppliers also have their prices below 4.000 zoty. The price level remains relatively high. More than a year ago, Polish farmers paid about €215 for their ammonium nitrate.
Gas prices in particular have pushed up fertilizer prices. Poland is in a difficult situation because 40% of all imported fertilizers come from Russia and Belarus. The land mainly gets it from there.
Niels van der Boom
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