POLAND: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Hsin Huang

Email: hsin.huang@oecd.org

Tel :

(33-1) 45 24 95 28

Fax :

(33-1) 45 24 18 90

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE) basic data, the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are only calculated for the following commodities: wheat, maize, barley, oats, rape seed, sugar, milk, beef and veal, sheep meat, wool, pig meat, poultry and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for the commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool and eggs), provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

Table 1. POLAND: Total Support Estimate

Definitions:

I. Total value of production (at farm gate): Total agricultural production valued at farm gate prices, i.e. value (at farm gate) of all agricultural commodities produced in the country [1].

1. Of which share of MPS commodities (%): Share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.

II. Total value of consumption (at farm gate): Consumption of all commodities domestically produced valued at farm gate prices, and estimated by increasing the value of consumption (at farm gate) of the MPS commodities according to their share in the total value of agricultural production [(II.1) / (I.1) x100].

1. Of which MPS commodities: Sum of the value of consumption (at farm gate prices) of the MPS commodities as indicated in Table 2.

III.1 Producer Support Estimate (PSE): Associated with total agricultural production, i.e. for all commodities domestically produced [Sum of A to H; when negative, the amounts represent an implicit or explicit tax on producers].

A. Market Price Support: On quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the MPS commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].

·  1. Of which MPS commodities: Sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

Deficiency payments for bread cereals. (doplaty dla producentów pszenicy i zyta konsumpcyjnego) Payment per tonne of wheat and rye delivered to operators that had signed contracts with the Agricultural Market Agency. The payment rate varies according to the time of delivery. The programme was introduced in 1999. Calculated on a fiscal year basis and allocated to wheat.

Payments to high quality milk. (doplaty do mleka w klasie ekstra) Program introduced in 2002.

2. Based on limited output

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Payments for natural disaster relief and assistance. (pomoc dla poszkodowanych w wyniku klesk zywiolowych). Subsidies for operational and investment credits aimed at the re-establishment of farm production in the affected areas. The value of a subsidized credit was limited to 80 per cent of the value of estimated damages or 500 000 NLZ per farm. The programme was in operation since 1997.

2. Based on limited area or animal numbers

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production

Pre-reform payments (dotacje stosowane przed transformacja gospodarcza): Budget expenditure in the pre-reform period (1986-1990) on payments mainly to state farms, but also to co-operative and private farms to cover part of their overall costs. Calculated on a fiscal year basis and allocated to all commodities proportionally to the share of their value in the total value of agricultural production [2]. Rural development assistance (SAPARD),(wspólfinansowanie programuSAPARD)):

2. Based on historical support programmes

E. Payments based on input use

1. Based on use of variable inputs

Credit payments (dotacje do kredytów): budget expenditure on debt rescheduling and interest concessions on operation loans for purchasing variables inputs, including certificate seeds, fertilisers, pesticides and compound feed. Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production [2].

Fertiliser payments:(dotacje do nawozów) budget expenditure covering part of the costs of production and delivery of calcium fertilisers to producers at a subsidised price. Calculated on a fiscal year basis and allocated to crops proportionally to their share in the total value of crops production [2].

Fuel payment: (dotacje do paliwa) budget expenditure allocated by the Government to compensate farmers for fuel price increases in 1993, paid per hectare of arable land (and not in relation of the quantity of fuel used by farmers). Calculated on a fiscal year basis and allocated to all crops proportionally to their share in the total value of agricultural production [2].

Feed payments: (dotacje do pasz) budget expenditure in the pre-reform period (1986-1990) to feed manufacturers for covering the difference between the costs of production and the low state-fixed prices paid by farmers. Calculated on a fiscal year basis and allocated to livestock proportionally to the share of their value in the total value of livestock production [2].

Machinery payments: (dotacje do maszyn) budget expenditure in the pre-reform period (1986-1990) to state enterprises renting machinery for covering the difference between their costs and the low state-fixed renting rates paid by farmers. Calculated on a fiscal year basis and allocated to crops proportionally to their share in the total value of crop production [2].

Seed payments:(dotacje do materialu siewnego) budget expenditure for reducing the seed price paid by farmers, including seeds of grains, potatoes, grasses, white clover and lupine. Calculated on a fiscal year basis and allocated to crops proportionally to their share in the total value of crop production [2]. [No data available for the period 1986-93].

Pesticide payments: (dotacje do pestycydów) budget expenditure in the pre-reform period (1986-1990) for reducing the pesticides prices paid by farmers. Calculated on a fiscal year basis and allocated to crops proportionally to their share in the total value of crop production [2].

Water payments: (dotacje do melioracji) budget expenditure to cover part of the operational and maintenance costs of irrigation schemes. Calculated on a fiscal year basis and allocated to crops proportionally to their share in the total value of crop production [2].

2. Based on use of on-farm services

Payments for animal health control: (zwalczanie chorób zakaznych zwierzat) budget expenditure on animal health, calculated on a fiscal year basis and allocated to livestock according to their share in the value of production [2]. [No data available for 1986-90].

Payments for pest control: (dotacje do ochrony roslin) budget expenditure on plant protection, calculated on a fiscal year basis and allocated to crops according to their share in the value of production [2]. [No data available for 1986-90].

Payments to chemical agricultural stations (stacje chemiczno-rolnicze) budget expenditure on chemical agricultural stations, calculated on a fiscal year basis and allocated to crops according to their share in the value of production [2].

Payments for chemical plant protection (chemizacja rolnictwa i ochrona roslin uprawnych) budget expenditure on chemical plant protection, calculated on a fiscal year basis and allocated to crops according to their share in the value of production [2].

Payments for agricultural extension services (upowszechnianie doradztwa rolniczego) budget expenditure on agricultural extension services, calculated on a fiscal year basis and allocated to all commodities according to their share in the value of production [2].

Payments to National Agricultural Extension Service centre (Krajowe Centrum Doradztwa, Rozwoju Rolnictwa i Obszarów Wiejskich) budget expenditure for the National Centre for Agricultural Extension Services, calculated on a fiscal year basis and allocated to all commodities according to their share in the value of production [2].

Payments for the implementation of the accounting system (udzial w finansowaniu wdrazania systemu rachunkowosci (ARiMR)) budget expenditure for implementing the accounting system in agriculture, calculated on a fiscal year basis and allocated to all commodities according to their share in the value of production [2].

Payments for the implementation of the agricultural insurance system (wdrozenie i funkcjonowanie systemu ubezpieczen upraw rolnych) budget expenditure for implementing the agricultural insurance system, calculated on a fiscal year basis and allocated to all commodities according to their share in the value of production [2].

Payments to geodetic services (uslugi geodezyjno-urzadzeniowe (wojew.)) budget expenditure on geodetic services, calculated on a fiscal year basis and allocated to all commodities according to their share in the value of production [2].

3. Based on fixed inputs

Credit payments: (wydatki budzetowe na programy oddluzenia i doplaty do kredytów investycyjnych) budget expenditure on debt rescheduling and interest concessions on investment loans. Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production [2]. [No data available for 1986-90]. SAPARD 2002-03(25%, another 25% under GSSE).

Drainage payments: (dotacje do melioracji) budget expenditure on land improvement through drainage. Calculated on a fiscal year basis and allocated to crops proportionally to the share of their value in the total value of crop production [2].

Payments for water drainage system maintenance (utrzymanie melioracji wodnych (wojew.)) budget expenditure on maintenance of drainage system. Calculated on a fiscal year basis and allocated to crops proportionally to the share of their value in the total value of crop production [2].

Tax concessions: (investycyjne ulgi podatkowe) loss of budgetary revenues due to tzx concessions concerning land bought for expanding the farm size or create a new farm, fallow land put under cultivation (for five years) and on-farm investment on rain-water reserves, drainage and irrigation. [No data available].

F. Payments based on input constraints

1. Based on constraints on variable inputs

Payments for organic farming (rolnictwo ekologiczne) Payments to farmers who refrain from using syntheticagro-chemicals. Calculated on a fiscal year basis and allocated to all commodities proportionally to the share of their value in the total value of production [2].

2. Based on constraints on fixed inputs

Tax concessions: (ulgi podatkowe) tax concessions on land withdrawn from cultivation for at least three years, and on investment made on-farm for reducing pollution. Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production. [No data available].

3. Based on constraints on a set of inputs

G. Payments based on overall farming income

1. Based on farm income level

Tax concessions (ulgi podatkowe): income tax concessions. [No data available].

2. Based on established minimum income

H. Miscellaneous payments

1. National payments

Bugdetary co-financing of the EU financed rural development programme Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production.

2. Sub-national payments

Expenditure of state and municipal governments (dotacje do samorzadów lokalnych): Budgetary support of farming by state and municipal governments (half, other half under GSSE). Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production.

Expenditure of territorial, self-governing associations of agricultural producers (dotacje do organizacji producentów rolnych): Budgetary support of farming by state sanctioned associations of agricultural producers (half, other half under GSSE). Calculated on a fiscal year basis and allocated to all commodities proportionally to their share in the total value of agricultural production.

III.2 Percentage PSE [(III.1) / ((I) + (Sum of B to H)) x 100]

III.3 Producer NPC: For all agricultural commodities the Producer NPC is estimated as a weighted average of the producer NPC calculated for the individual MPS commodities and shown in Table 2. For each commodity Producer NPC = [domestic price received by producers (at the farm gate) + unit payments based on output] / border price (also at the farm gate).

III.4 Producer NAC [1 / (100 - (III.2)) x 100]

IV. General Services Support Estimate (GSSE): Total budgetary expenditure to support general services provided to agriculture [Sum of I to O] .

I. Research and development

Budgetary expenditure for animal breeding (Krajowe Centrum), (Krajowe Centrum Hodowli Zwierzat): Budgetary expenditure for agricultural research (detailed information available since 2000) [2].

Budgetary expenditure for animal breeding (Centralna Stacja), (Centralna Stacja Hodowli Zwierzat): Budgetary expenditure for agricultural research (detailed information available since 2000) [2].

Budgetary expenditure for plant breeding, (COBORU): Budgetary expenditure for agricultural research (detailed information available since 2000) [2].

Budgetary expenditure for fostering biological progress in plant production, (postep biologiczny w produkcji roslinnej (bez dotacji do nasion)): Budgetary expenditure for agricultural research (detailed information available since 2000) [2].

Budgetary expenditure for fostering biological progress in animal production, (postep biologiczny w produkcji zwierzecej): Budgetary expenditure for agricultural research (detailed information available since 2000) [2].

Budget expenditure on agricultural research institutions and central laboratories, (dotacje do rolniczych instytutów badawczych): Budgetary expenditure for agricultural research (aggregate information used up to 1999) [2].

J. Agricultural schools

Budget expenditure on agriculture professional schools, (oswiata i wychowanie): Budgetary expenditure for schooling purposes [2].

Budgetary exenditure on education in rural areas, (inicjatywy wspierania edukacji na wsi): Budgetary expenditure for schooling purposes [2].

Grants for improving professional qualification, (udzial w finansowaniu podnoszenia i zmiany kwalifikacji zawodowych (ARiMR)): Budgetary expenditure for schooling purposes [2].

Budgetary expenditure on libraries in rural areas, (dotacje do biblioteki): Budgetary expenditure for schooling purposes [2].

K. Inspection services

Budgetary expenditure on of inspection services (dotacje do Inspekcji Nasiennej, Panstwowej Inspekcji Ochrony Roslin, Panstwowej Inspekcji Weterynaryjnej, Panstwowej Inspekcji Skupu i Przetwórstwa Artykulów Rolnych, Centralny Inspektorat Standaryzacji, Kontrola jakosci gleb, roslin, produktów rolniczych i spozywczych, Monitorowanie dostepu polskich artykulów rolno-spozywczych do rynków zagranicznych i wielkosci importu): Budgetary expenditure on different forms of inspection services [2].

L. Infrastructure

Payments to "water societies", (spólki wodne): Budgetary expenditure for infrastructure improvement [2].Rural development assistance (SAPARD),(wspólfinansowanie programuSAPARD)):

Payments to water supplies and sewage systems in rural areas, (infrastruktura wodociagowa i sanitacja wsi): Budgetary expenditure for infrastructure improvement [2].

Payments for rural infrastructure, (finansowanie infrastruktury wsi (ARiMR)): Budgetary expenditure for infrastructure improvement [2].SAPARD in 2002 and 2003 (25%, another 25% under PSE).

Budgetary expendityre on other agricultural infrastructure, (wykup gospodarstw rolnych za rente (AWRSP)): Budgetary expenditure for infrastructure improvement [2].

Budgetary expenditure on amelioration, (aktywizacja terenów wiejskich): Budgetary expenditure for infrastructure improvement [2].

Budgetary expenditure for the development of agri-business firms, (rozwój malej przedsiebiorczosci (ARiMR)): Budgetary expenditure for infrastructure improvement [2].

Budgetary expenditure for agricultural chambers, (dotacje dla izb rolniczych): Budgetary expenditure for infrastructure improvement [2].

M. Marketing and promotion

Budgetary expenditure for marketing (nadwyzka (niedobór) dotacji budzetowej nad wydatkami ARR): Expenditure for agricultural marketing and promotion [2].

N. Public stockholding

Budget expenditure for storage (wydatki na utrzymanie zapasów ARR): Expenditure for the operation and maintenance of the state’s reserves of agricultural and food products [2].

O. Miscellaneous

Bugdetary co-financing of the EU financed rural development programme

Expenditure of state and municipal governments (dotacje do samorzadów lokalnych): Budgetary support of farming by state and municipal governments (half, other half under PSE).

Expenditure of territorial, self-governing associations of agricultural producers (dotacje do organizacji producentów rolnych): Budgetary support of farming by state sanctioned associations of agricultural producers (half, other half under PSE).

 

V.1 Consumer Support Estimate (CSE): Associated with agricultural production, i.e. for the quantities of commodities domestically produced, excluding the quantities used on-farm as feed -- excess feed cost. [Sum of P to S; when negative, the amounts represent an implicit tax on consumers].

P. Transfers to producers from consumers: Associated with market price support on all domestically produced commodities, estimated by increasing the transfers calculated for the MPS commodities according to their share in the total value of production [(P.1) / (I.1) x 100].

·  1. Of which MPS commodities: Sum of the values of transfers from consumers to producers associated with market price support for the MPS commodities as calculated in Table 2.

Q. Other transfers from consumers: Transfers to the budget associated with market price support on the quantities imported of domestically produced commodities, estimated by increasing the transfers calculated for the MPS commodities according to their share in the total value of production [(Q.1) / (I.1) x 100].

1. Of which MPS commodities: Sum of the transfers to the budget associated with market price support on the quantities imported of the MPS commodities as calculated in Table 2.

R. Transfers to consumers from taxpayers

Price compensatory payments: (dotacje do przetwórstwa rolno-spozywczego): Budget expenditure in the pre-reform period (1986-1990) to specific food processing industries to keep consumer prices lower than prices received by farmers, particularly in the case of dairy products, meat and grain products. Calculated on a fiscal year basis for the specific commodities [2].

Domestic consumption aid (dotacje do krajowej konsumpcji): Budget expenditure on food aid to low-income families. Calculated in a fiscal year basis and allocated to all commodities proportionally to their share on the total value of agricultural production [2].

S. Excess Feed Cost: Associated with market price support on quantities domestically produced and used on-farm as feed as calculated in Table 2.

V.2 Percentage CSE [(V.1) / ((II) - (R)) x 100]

V.3 Consumer NPC: For all agricultural commodities the Consumer NPC is estimated as a weighted average of the consumer NPC calculated for the individual MPS commodities and shown in Table 2. For each commodity Consumer NPC = domestic price paid by consumers (at the farm gate)/ border price (also at the farm gate).

V.4 Consumer NAC [(1 / (100 -(V.2)) x 100]

VI. Total Support Estimate [ (III.1) + (IV) + (R)] and [ (T) + (U) - (V)]

T. Transfers from consumers [ (P)+(Q)]

U. Transfers from taxpayers [ (III.1)-(P)+(IV)+(R)]

V. Budget revenues [ (Q)]

Sources:

[1] GUS, Statistical yearbook, Warsaw.

[2] Information provided by the Foundation of Assistance Programmes for Agriculture, Agricultural Policy Analysis Unit, (SAEPR)

 

Table 3. Producer Support Estimate by commodity

 

Definitions and Sources: see Tables 1 and 2 above.