President Karol Nawrocki has signed legislation allowing funds returned from rural development programs to be used for interest subsidies on agricultural loans, providing support to the sector for the next eight years.
Financial restructuring of rural development funds
The new legislation amends the law on supporting rural development, specifically utilizing funds from the European Agricultural Fund for Rural Development under the 2014-2020 program. These resources, previously earmarked for the National Guarantee Fund, will now be diverted to lower interest rates on loans.
The Ministry of Agriculture and Rural Development will retain control of these funds, which are expected to total approximately half a billion zlotys. These resources will be released gradually as existing credit obligations are settled.
Enhanced access to credit for farmers and processors
The regulations are designed to simplify access to preferential credit for farmers and food sector entrepreneurs. By combining loan repayment guarantees of up to 80 percent with interest subsidies, the policy aims to help businesses maintain liquidity and fund necessary investments.
Operating loans will allow farmers to secure capital during peak periods, such as before harvest, at a lower cost than standard commercial offerings. The Ministry estimates these measures will support total credit activity amounting to approximately 2.5 billion zlotys.
Implementation and long-term outlook
The law will come into effect 14 days after its official publication. After the initial eight-year support period concludes, the Ministry of Agriculture and Rural Development retains the authority to continue utilizing the remaining funds to support the agricultural sector.