In Tuesday’s edition, “Rzeczpospolita” takes a closer look at the structure of our agriculture. The fragmentation of the Polish countryside is widely known, but the disproportions between employment and GDP generated and the so-called farmers from Marszałkowska, who, although they own land and receive subsidies, in fact often rent it. Add to this the lack of profitability, the requirements related to the EU agricultural policy and we have a ready recipe for a crisis in the industry. So what is the value of Polish agriculture? What challenges await us?
Polish agriculture relies on animal production
An important issue discussed in “Rzeczpospolita” is the underestimation of animal production, which constitutes a significant part of the value of Polish agriculture. Commercial production was worth PLN 143 billion in 2022, of which, according to the 2023 Statistical Yearbook of Agriculture, milk production alone is worth PLN 29 billion, poultry production is another PLN 22.5 billion, vegetable production is PLN 10 billion, and fruit – PLN 8 billion. The value of animal production reaches PLN 85 billion. For comparison, the newspaper also provides the value of the cereal market estimated at PLN 23 billion. These data show that the recent conflict over the import of agri-food products and the embargo proposed by protesting farmers would be a double-edged sword that would hit, for example, the dairy industry, which successfully exports products to Ukraine and its value is 3 percent. entire Polish exports!
– We can definitely say that milk, if it is not already, may soon become a victim of the conflict between Poland and Ukraine regarding grain imports – said Agnieszka Maliszewska, director of the Polish Chamber of Milk and first vice-president of COGECA, at the beginning of March.
As Grzegorz Rykaczewski, agricultural markets analyst at Pekao, notes in a statement for the daily, more than half of the value of agricultural production, i.e. that which is the subject of sale, is made up of animal production in Poland.
– Its share has been growing over the last decade at the expense of plant production. This was mainly due to the dynamic development of two sectors: poultry breeding and cow milk production. In both cases, Poland is one of the leading European producers, he adds.
What does the Polish countryside live on?
Another problem are paper farmers, i.e. those who, for example, completed a course, bought several hectares of agricultural land and enjoy privileges and subsidies. The newspaper also explains that there are few farmers who earn their living solely from agricultural production, most of them also earn extra money in other sectors. Those who deal exclusively with agriculture are usually owners of large, commercial farms. So what does a Polish farmer live on? As explained by Dr. Marcin Hamulczuk, assistant professor at the Institute of Economics and Finance of the Warsaw University of Life Sciences, income comes from two sources: the market and CAP subsidies. However, anyone who follows agriculture at least a little knows that the sale of agricultural raw materials is subject to the operation of market mechanisms, prices are variable, and given the rising production costs: inputs, fuel, fertilizers – profitability is often below the line.
How many people actually make a living from agriculture?
The next issue noted by the daily is the disproportion between employment in agriculture and GDP generated. It is born primarily from the large fragmentation of farms, as well as from the large number of people who indicate agriculture as their main occupation. How many people actually make a living from agriculture?
According to the Central Statistical Office data, only in 400 thousand with over 1.3 million individual farms, income from agriculture accounts for more than 50%. budget. In 200 thousand pensions and annuities had the greatest importance in the revenue structure, almost PLN 600,000. farmers earned their living mainly from work outside agriculture. There are nearly one million farms with an area of up to 10 ha, i.e. 74%. everyone. At the same time, they operate at only 25 percent. agricultural land – we read in Rzeczpospolita.
The data quoted show that Polish agriculture consists of small farms of up to 5 – 10 ha, but these do not produce for the market. About 8 percent work in agriculture. employed people, but it produces only 3%. GDP, which unfortunately suggests its low productivity. So how to increase it? Should we make structural changes and technologically strengthen Polish agriculture so that we can produce more with less employment?
Our agriculture certainly faces serious challenges. It is not only struggling with current problems with which farmers are taking to the barricades and shouting about them loudly. The problem lies in the structure itself. Therefore, in addition to solving immediate issues, those in power must look at them from a long-term perspective, so as to have ideas and visions on how to transform and modernize this sector. Without this, Polish agriculture will not be competitive.
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