KOWR: There will be 100% payments from the Agricultural Protection Fund

Luc Williams

Farmers could submit applications for compensation from February 1 to March 31 this year. regarding purchasing entities that became insolvent from January 1, 2023 to December 31, 2023. This applies to farmers who could not collect payment for the delivered goods, e.g. due to the bankruptcy of the purchasing company.

1,077 applications for compensation

“On May 28, 2024, the regulation of the Minister of Agriculture and Rural Development of May 24, 2024 entered into force, setting the compensation rate used to determine the amount of compensation in 2024 at 100 percent.” – the National Center for Agriculture Support (KOWR) announced on Wednesday.

According to KOWR data as of May 28 this year. local branches received 1,077 applications for compensation under the Agricultural Protection Fund for the amount of approximately PLN 57.9 million.

If the amount requested by farmers exceeds the funds for this purpose, a correction coefficient could be applied. In the 2024 budget, PLN 100 million is reserved for the Agricultural Protection Fund (FOR).

What is the Agricultural Defense Fund?

Provisions of the Act on Agricultural Protection Fund effective from July 1, 2023. Its aim is to create legal options guaranteeing agricultural producers compensation for the loss of income from their agricultural activities in the event of bankruptcy of purchasers of agricultural products.

Payments to FOR in the amount of 0.125%. the value of purchased agricultural products net of VAT must be paid by entities purchasing agricultural products for the purpose of storing, processing or processing them. This includes, for example, live animals, meat and offal, fish, dairy products, eggs, honey, vegetables, fruit, nuts, fats and sugar.

Purchasing companies must submit declarations by the 26th day of the month following the end of the quarter, i.e. by April 26 this year, and by the last working day of the month following the end of a given quarter, i.e. by April 30 this year. must make a payment to the Fund for crops purchased between January 1 and March 31 this year.

author: Anna Wysoczańska


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