Continued support from the government – additional aid for farmers and protection for gas customers against uncontrolled price increases until 2027
18.03.2022
Rising prices of raw materials, particularly gas, are translating into higher fertiliser and food prices in shops. This is why we are introducing more solutions to ensure that more money stays in the wallets of Poles. Support from the state budget will include farmers who are at risk of losing their financial liquidity. The aid will apply to fertilisers that agricultural producers bought between 1 September 2021 and 15 May 2022. The funding will cover up to 50 ha of land and will amount to up to PLN 500 per ha. This provides real support for farmers, but also for all Poles who will pay less for food products. In addition, we are extending protection against uncontrolled gas price increases until 2027. This solution will benefit 7 million households, housing communities and cooperatives, as well as entities such as hospitals, schools or cultural institutions.
"The war that Putin has started is a horror for Ukraine and its people. In addition, this war is also causing enormous economic problems. In such a time, our government has decided to implement the "Anti-Putin" Shield. We call it so conventionally, because it is this war instigated by Putin that converges a great number of problems like a lens," stressed the head of the Polish government.
The Prime Minister added that in this fight, the government will try to counter inflation, which is much higher than most economists predicted a month or two ago. He informed that in addition to this, the government will also focus on issues related to employment, on the support of companies that have operated on the Russian market until now: "We ourselves are calling on them to stop activity on the Russian market. We will work toward the de-Russification of the Polish and European economies.
The main objective of the first part of the so-called Anti-Putin Shield is to prevent the increase in food prices. Increase which we already know will be incredibly dynamic, which will unfortunately be high," informed the Prime Minister.
Aid for farmers – subsidies on mineral fertilisers
The aid will be aimed at farmers who are at risk of losing their financial liquidity. Agricultural producers will be able to receive support from the state budget for fertilisers that were purchased between 1 September 2021 and 15 May 2022.
"Farmers have been suffering the consequences of Putin's policy, Russia's policy, for many months now. Hence, our solutions are to at least partially cover the losses resulting from very high fertiliser prices," stressed Prime Minister Mateusz Morawiecki.
A maximum of 50 ha of land will be eligible for funding. What will be the limits of this support?
- PLN 500 per 1 ha of agricultural area,
- PLN 250 per 1 ha of meadows, pastures and grassland on arable land.
"Aid for farmers has been so designed that the compensation could be paid on the basis of invoices for the purchases of fertiliser. It will be a compensation of about 1500 PLN to one tonne of fertiliser," concluded the Deputy Prime Minister, Minister of Agriculture and Rural Development Henryk Kowalczyk.
To receive the funding, the farmer will have to submit an application to a district office of the Agency for Restructuring and Modernisation of Agriculture by 16 May 2022. The form will be drawn up and made available by the Agency on its website.
Important! Aid for the purchase of fertilisers will be able to be granted as soon as the European Commission announces a positive decision on its compatibility with the common market.
Shield against uncontrolled gas price increases
"Faced with Russia's imperial policy, we have decided to extend the tariff protection of the President of Energy Regulatory Office to domestic consumers and public benefit institutions until 2027," informed the Minister of Climate and Environment Anna Moskwa.
The tariff protection will cover 7 million households, housing communities and cooperatives, and public utilitiy entities – such as hospitals or schools. This will reduce the risk of a sharp rise in prices and more money will stay in Pole's wallets.
Energy security of Poland
For many years, Poland has consistently taken action to diversify the supply of energy resources. We want to protect ourselves against Russian energy blackmail. Poland is now ready to dispense with imports of Russian raw materials. Unfortunately, Western European countries have been less precautious, so their dependence on Eastern markets is much greater.
"Anticipating the bad course of events, we have built space that allows real gas independence in Poland in advance. The Baltic gas pipeline, on the one hand, and the Świnoujście gas terminal, on the other, which we are expanding to the capacity of more than 8 billion cubic metres of annual throughput, the ability to receive LNG, are our response. This is our investment in energy security. This is our new gas infrastructure, ensuring the stability of supply. This is our new infrastructure, which will lead to a decrease in prices," said Prime Minister Morawiecki.
The stability of supply will be guaranteed by the new gas infrastructure. It includes:
- expansion of President Lech Kaczyński's LNG terminal in Świnoujście,
- new floating terminal in Gdańsk,
- construction of new gas pipelines by GAZ-SYSTEM.
Importantly, the launch of the Baltic Pipe pipeline, which is planned later this year, will allow Poland to become completely independent of gas supplies from the East.
