More farmers will benefit from subsidies for the modernization of farms

The Ministry of Agriculture wants to avoid a situation where, due to non-use, funds from the Rural Development Program 2014-2020 would have to be transferred to the EU.

– The implementation of the Rural Development Program 2014–2020 has entered its final stage and efforts should now be made to use the budget of individual support instruments as fully as possible, including the implementation of the N+3 rule for each annual allocation. Due to the above, it was proposed to reallocate financial resources in order to better match the budgets of individual instruments to the actual needs reported by applicants. At the same time, funds were proposed to be transferred to instruments in which their use is possible, and the allocations were reduced taking into account the expected payment levels – we read in the justification to the draft regulation of the Minister of Agriculture and Rural Development amending the regulation on the limits of funds available in individual voivodeships or years within specific actions or sub-measures of the Rural Development Program for 2014-2020.

More money for modernization of farms

As part of the “Modernization of agricultural holdings” operation, the last call for aid applications under the Rural Development Program 2014-2020 was carried out from June 5, 2023 to July 19, 2023. After the reallocation of funds to this type of operation, included in the last amendment to the regulation (Journal of Laws of 2023, item 1934), in accordance with the information provided by ARiMR, the limit of available funds includes 2,969 cases out of 13,986 under consideration.

The financial analysis of the Rural Development Program 2014-2020 budget carried out by the managing authority showed that it is now possible to transfer it to an operation of the type “Modernization of agricultural holdings”:

• EUR 20,000,000 of public funds from operations such as “Processing and marketing of agricultural products” – the recruitment of applications and the process of contracting funds have already been completed. The implementation and settlement of the operation by the beneficiaries is ongoing, therefore the proposed reallocation of funds focuses on adapting the budget of this support instrument to the expected payment levels;
• EUR 768,683 of public funds from financial instruments, in connection with the submission of all planned payment applications and the payment of funds, other, among others: due to differences, free funds can be reallocated;
• EUR 118,176 of public funds from operations of the “Land consolidation” type in connection with the reduction of the limit for this type of operation in the last amendment to the regulation.

And these shifts have been taken into account in the proposed regulation. Moreover – as we read in the justification – in the near future, the Ministry of Agriculture and Rural Development is considering additional reallocation of funds to operations such as “Modernization of agricultural holdings”, which would enable the conclusion of further aid agreements. However, this requires obtaining the consent of the European Commission and changing the Program, which will certainly take place after May 2024, i.e. the date when, in accordance with the current legal status, ARiMR will have to refuse to grant aid to applicants who are outside the limit.

Wait patiently

– Taking into account the huge interest of applicants in support, it seems reasonable to enable ARiMR not to refuse to grant aid to applicants whose applications contain a need for funds exceeding the amount of the financial limit specified in the regulation and to enable the signing of agreements on granting aid with applicants from the date on which it turns out that within the limit of funds, it is possible to grant aid to additional applicants (i.e. there are savings or additional funds) – notes the Ministry of Agriculture.

According to the provision proposed in the regulation, all aid applications requesting funds in excess of the available limit will await availability of funds. Once the funds become available, subsequent applications will be verified in accordance with the order in which aid is granted under a given type of operation (i.e. in accordance with the so-called “list” referred to in the provisions of the regulation on detailed conditions and procedures for granting and paying financial aid under this type of operation) within 4 months from the date on which it turns out that funds are available.

– Shortening the deadline for considering applications (compared to the regulations applicable to operations such as “Modernization of agricultural holdings”) results from the need to grant aid as quickly as possible from the moment the funds become available, so that the beneficiaries have sufficient time to implement the operation. ARiMR may also consider applications for aid before the limit appears, so in practice the time for their verification may be much longer – adds the Ministry of Agriculture and Rural Development in the justification.

Money for markets

In the draft regulation, in connection with the request of the following voivodeships: Lower Silesia, Lubuskie, Opole and Silesia, it is also proposed to combine the limit of funds for operations of the type “Investments in marketplaces or construction facilities intended for the promotion of local products” and the limit of funds for other operations of the type “Water and water management”. sewage”, “Construction or modernization of local roads”, “Protection of monuments and traditional construction”, “Investments in facilities performing cultural functions” and “Shaping public space” into one limit.

– The change does not affect the amount of the available limit for the measure “Basic services and village renewal in rural areas”. Due to the approaching end of the Rural Development Program 2014–2020 programming period, the change will ensure the most effective and fullest possible use of funds by concluding subsequent agreements on granting aid for applications submitted under this measure – explains the Ministry of Agriculture.

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