The Ministry of Agriculture has submitted a draft regulation for public consultation, thanks to which, from 2024, more farmers will receive higher subsidy rates, provided that they keep grass-eating animals and their land is covered by LFA payments.
As we read in the justification, change of regulation Minister of Agriculture and Rural Development of March 10, 2023 on detailed conditions and detailed procedure for granting and disbursing payments for areas with natural or other specific constraints under the PS for the CAP 2023-2027 is introduced in order to enable a larger number of farmers to receive higher payment rates in LFA areas, mountain type and specific type zone II, in which at least 50% of the agricultural area is located above 350 m above sea level, and who have a specified minimum number of herbivorous animals on their farms .
Why was it decided to increase payments?
– Due to the problems occurring in recent years, the agricultural sector is experiencing particular difficulties. Numerous factors, including the war in Ukraine, contributed to a significant increase in production risk and profitability of agricultural production. Therefore, an analysis of the LFA payments was made in terms of the impact of the rates on the achievement of the objectives of the measure, taking into account the possibilities of the budget intended to implement the intervention under the entire program. In this context, demands made by agricultural organizations and farmers were also analyzed, stating that animal stocking rates at the level of 0.5 DJP are often impossible to maintain in mountain and foothill areas without excessive grazing and intensive fertilization – explains the Ministry of Agriculture.
In his opinion, in small-scale farms operating in mountain areas, due to the small scale of production and high unit costs, it is difficult to ensure the profitability of animal production.
– Taking into account non-production functions both regionally and nationwide, it is particularly important to increase LFA payment rates for farmers with grass-eating animals. The current payment rates obtainable under LFA support in mountain and foothill areas do not sufficiently compensate for the increase in production costs, in particular in relation to the difficult conditions of use of these areas, taking into account increases in prices for fuels, energy, machinery, fertilizers and plant protection. Therefore, it is advisable to increase these rates as much as possible, to the possible level of 100% of the rates calculated by the Institute of Agricultural and Food Economics – National Research Institute – notes the Ministry of Agriculture and Rural Development in the justification.
What will the new rates be?
The new level of payment rates in LFA areas, mountain type and specific type zone II, in which at least 50% of the agricultural land area is located above 350 m above sea level, and the minimum stocking density of animals entitling to obtain payments at these rates are specified in the provisions introduced in § 1 of the proposed regulations:
- for zone II LFA specific type, the so-called podgórska, the amount of possible payment rates is changed from PLN 550/ha of UAA/year to PLN 676/ha of UAA/yearfor farms with a stocking density of grass-eating animals of at least 0.3 DJP/ha of UAA (stocking density calculated as UAA in the entire farm), which meet the condition “at least 50% of the agricultural area is located above 350 m above sea level”
- LFA mountain type – the amount of possible payment rates is changed from PLN 750/ha of UAA/year to PLN 829/ha of UAA/year for farms with a stocking density of grass-eating animals of at least 0.3 DJP/ha of UAA (stocking density calculated as UAA in the entire farm).
– The proposed increase in LFA payment rates is aimed at supporting the breeding of grass-eating animals and results from the need to properly take into account the strength of natural constraints on agricultural production in these areas and to increase the effectiveness of achieving the objectives of the measure – explains the Ministry of Agriculture.
The change in regulations was prepared for approximately 63,000 LFA farmers, specific type, zone II (foothill) and approximately 31,000 LFA farmers, mountain type.
The proposed amendment to the regulation on higher LFA payment rates is to enter into force on March 15, 2024.
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