200 PLN grain aid? Minister Krajewski warns: it is simply a trap for farmers!

dailyblitz.de 17 hours ago

Polish farmers are on alert, and the cereals marketplace is in unprecedented crisis. Buy-in prices have fallen to levels that many farms prevent profitable crop sales by threatening losses alternatively of profits. In consequence to the dramatic situation, the National Council of Agricultural Chambers (CoR) made an urgent request to the Ministry of Agriculture and agrarian improvement to payment of PLN 200 to each tonne sold. However, Minister Stefan Krajewski, although he understands the concerns, makes it clear: specified a solution may be a trap that will not aid farmers at all. Instead, the Ministry proposes a strategical change to stabilise the marketplace in the long term.

This stalemate affects thousands of farms across Poland, forcing them to fight for survival. In 2024 we see a drastic fall in the prices of key cereals, which straight translates into farmers' income. Is the offer of subsidies the only way, or does the minister propose that the marketplace needs completely different, systemic solutions? The answer to this question will find the future of Polish agriculture.

Farmers trapped: Cereal prices fall on the head, on the neck

The current situation on the Polish cereals marketplace is alarming. Purchases are overcrowded and prices of wheat, rye or maize have reached levels that many farms prevent profitable sales. Farmers study that cost of production frequently outweighs the sales revenuewhich leads to expanding losses. According to the analyses of renowned Chambers & Partners and Investrop, the number of unsold yields has increased importantly in the last year, which additionally burdens warehouses and liquidity. It is not only a problem of individual income – it is besides a threat to the country's food safety in the long term.

Against these challenges, the National Council of Agricultural Chambers has taken decisive steps. A peculiar letter to the Minister of Agriculture called for immediate financial support. The postulate is clear: 200 PLN aid for each tonne of grain sold. According to the KRIR, this is the only way to partially compensate farmers for the losses resulting from current, exceptionally hard marketplace conditions. specified intervention would supply the essential financial breath and let us to last the most hard period.

Minister Krajewski: Payment is simply a trap! Chess cereals market

Minister Stefan Krajewski, head of the Ministry of Agriculture, in consequence to the KRIR's appeal, admitted that the subject of subsidies is simply a origin of large excitement and is the subject of intense discussions. However, in his view, the proposed solution, although at first glance it seems attractive, may not have the desired effect and may even become a trap for farmers. "On the 1 hand, I see the CRIR's call, on the another hand, many farmers compose straight not to make subsidies, due to the fact that in practice buying-ins will reduce prices by the same amount," said the minister. This means that The final financial effect for hosts can be zeroand the marketplace will only be artificially distorted.

This position is worrying. If the purchasers, seeing the subsidies, immediately reduce the acquisition prices for cereals, the farmers will not experience a real improvement in their situation. In practice, financial support would be taken over by intermediaries alternatively of reaching the pockets of producers. Therefore, the Ministry of Agriculture is actively seeking alternative, more sustainable and systemic solutions that will actually stabilise the marketplace and supply fair income for farmers, alternatively of short-term, possibly ineffective interventions.

Alternative to farmers? The government is betting on the restoration of livestock farming

In the face of doubts about the effectiveness of subsidies, Minister Stefan Krajewski proposed an alternate that has the chance to stabilise the cereals marketplace in the long term. The Ministry of Agriculture focuses on an ambitious recovery plan for the national pig population, which has been falling steadily for years. According to the Minister, an increase in the number of pigs raised would let for the improvement of immense surplus feed grain, which is presently in the warehouses of farmers. "The best way would be to reconstruct pig farming, due to the fact that then we know that the grain will be rapidly grown," concluded Krajewski.

Such a strategy has a double benefit. Firstly, it would make a unchangeable interior marketplace for cereals, reducing its price pressure. Secondly, it would strengthen the Polish meat sector, which besides faces challenges. The reconstruction of pig farming is simply a comprehensive approach that could benefit not only cereal producers but besides the full agri-food industry. However, this takes time, investment and coordinated action on many levels to guarantee long-term safety and profitability for farmers.

ASF: Silent enemy blocking key changes in agriculture

A key barrier to the recovery of pigs remains African swine fever (ASF). Minister Krajewski recalled that ASF is inactive a real threat to Polish agriculture, and fresh outbreaks are detected both among chaotic boars and in individual farms. This unpredictable illness effectively discourages farmers from investing in the reconstruction of pig production, fearing losses and the request to destruct full flocks. Without effective control of the ASF, any plans for the improvement of the breeding will stay only in the sphere of wishful thinking.

However, the Ministry of Agriculture ensures that it is in constant contact with agricultural organisations and is actively working on a task to aid farmers and stabilise the cereal market. Fighting ASF is simply a precedence without which there is no permanent change. In 2025, it will be crucial to combine preventive measures, support for farmers and search for innovative marketplace solutions. Only a comprehensive approach, taking into account both subsidies and long-term strategies, has the chance to bring Polish agriculture out of the current crisis.

Read more:
200 PLN grain aid? Minister Krajewski warns: it is simply a trap for farmers!

Read Entire Article