€1.3 billion Polish scheme for agricultural producers affected by climate change

farm affected by climate change
Image © neenawat | iStock

The European Commission has approved a €1.3 billion Polish scheme to financially support agricultural producers covering the risk of damage to crops and livestock

Set to run until 31 December 2027, the Polish scheme aims to help generate stable incomes for agricultural producers, to prepare for the effects of climate change to come.

The scheme contributes to the objectives of the Common Agricultural Policy, a partnership between society and agriculture that ensures a stable supply of food, safeguards farmers’ income, protects the environment and keeps rural areas vibrant.

Its main intention is to pay insurance premiums covering the risk of damage to certain vegetable products and livestock species.

Who and what does the agricultural scheme protect against?

Certain adverse climatic events, such as hurricanes, floods, landslides and avalanches will all be considered in insurance for agricultural producers.

The scheme is also open to small, medium, and large companies active in agricultural primary production in Poland.

The scheme is also open to small, medium, and large companies

Those who subscribe to insurance coverage with insurance companies selected by the Polish authorities will follow an open tendering procedure.

Once claimed, those eligible beneficiaries are entitled to receive an aid amount of up to 65% of their insurance premiums – provided that those do not exceed certain thresholds.

Specific events are covered by the Polish scheme also, such as droughts specifically, which the scheme will include a State reinsurance mechanism whereby Poland will cover part of the compensation payments that insurance companies would need to pay to agricultural producers.

How will this scheme help Poland and its agricultural producers?

By preserving stable incomes for agricultural producers, the Polish scheme will foster a competitive, resilient and diversified agricultural sector and ensure long-term food security – especially as climate change intensifies, and worsens agriculture outcomes.

Ensuring long-term food security

This prepares the Polish government to address market failures due to the high prices of insurance policies, but it also implies that agricultural producers would not be willing to purchase insurance policies without subsidies covering part of the insurance premium.

The European Commission noted how the scheme’s positive effects outweigh any potential distortion of competition and trade in the EU.


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