Small and medium-sized pig farmers in Poland will soon receive state aid. This aid is capped at 290,000 euros per farm and is intended to address liquidity bottlenecks. The European Commission has given Warsaw permission to finance this targeted business support from the large corona recovery fund.
Poland can thus help its pig industry, which has been economically affected by both the corona crisis and African Swine Fever, with approximately 88 million euros on a company-specific basis. The support is primarily intended for micro, small, and medium-sized enterprises that produce piglets.
The Polish ruling party Law and Justice (PiS) was at odds with the European Union for months over the appointment of biased government-friendly judges. Brussels had already initiated disciplinary procedures against Warsaw regarding this issue, including imposing heavy fines. Last week, Warsaw began reversing the judges issue, after which Brussels was able to act more amicably again.
The Commission has stipulated that the aid must not exceed 290,000 euros per beneficiary and must be granted within five months. The Polish government announced a support package for the Polish countryside late last year. According to Agriculture Minister Henryk Kowalczyk, in the second half of February a weather insurance will also be offered that covers all risks, including severe drought.
Existing drought insurances in Poland are often very expensive due to the high risk, making it not worthwhile for many farmers. To still enable favorable premiums, the Polish state will cover two-thirds of the premium amount.
There has already been a state-subsidized risk insurance in Poland for several years. Its premium of 87 million euros will now be increased to the equivalent of nearly €327 million.