Half a year has passed since Czesław Siekierski headed the Ministry of Agriculture and Rural Development. As he himself admits in the interview, this period was quite unique and the situation was complex due to many conditions. Mainly for economic reasons, when the high costs of agricultural production were met with low grain purchase prices. At the same time, the Minister of Agriculture reminds us not to forget about what actually caused this situation.
Russia has ruined world markets
– We must be aware that we are on a global market. Grain prices are not determined in Poland, but on world stock exchanges. These world markets have been somehow, you could say, ruined. This is a strong word, but I think it reflects the scale of unfavorable changes. Mainly caused by Russia. Russia, having large surpluses of gas, converted it mainly into fertilizers and increased agricultural production. It has been increasing its production for many years. (…) Last year it produced approximately 110 million tons of grain. Hence, it was able to export a lot, and thus lowered prices on world markets. It also entered our export markets, the markets of Ukraine and other countries. This also resulted in certain restrictions on the export of grain from Poland. Fortunately, the situation has changed in the last three months. Exports, including our grain, have been growing significantly since April. This marketing year, Poland will export approximately 13 million tons of grain, maybe even a little more, so this export will be higher than in the previous year. Already now, according to expert estimates, our warehouses are so empty that we do not have to worry about an earlier harvest. Warehouses and silos are largely empty.
Minister Siekierski also returns to the agricultural protests that peaked when he took office. Recalls that farmers indicated the inflow of grain from Ukraine and the requirements of the Green Deal as the main cause of their problems.
– In June 2022, after the outbreak of the war, the European Union, in order to support the Ukrainian economy, liberalized trade, thus opening the European market to the inflow of goods from Ukraine. No customs duties, no quotas – and this disturbed stability in some markets, mainly in border countries, and mainly affected farmers. Then an embargo was introduced, which limited the inflow of, among other things, grain from Ukraine, and of course there were very difficult talks with farmers, because they still believed that the excessive inflow of grain from Ukraine was to blame. As I said, this inflow also destabilized the grain market in Poland, but it was not the main cause. The main reason is what I said earlier, i.e. low prices on world markets, plus the Green Deal.
As the minister emphasizes, farmers rightly believed that the requirements of the Green Deal were so restrictive and so irrational that they required changes and restrictions, because it worsened their production conditions. Not only Polish farmers, but also German, French, Belgian and those from other countries talked about it during the protests that spread all over Europe.
The minister points out that this strengthened our negotiating position.
In all contacts with the European Commission, not only with the Commissioner for Agriculture, but also with the Commissioner for Trade, the Ministry made every effort to introduce certain restrictions on the inflow of goods from Ukraine. The second issue we raised was the departure from the restrictive requirements of the Green Deal.
The last ATM, then association negotiations
On June 6, 2024, a new, negotiated agreement on the suspension of import duties and quotas on Ukrainian goods imported to the European Union (ATM) came into force. The agreement will be valid until June 5, 2025. At the same time, Czesław Siekierski emphasizes that the current ATM will be the last one in force.
Later, we have a guarantee that we will return to the talks, to the association agreement that existed before, but I also do not know what will happen in Ukraine. Some opening must also be maintained. Ukraine wants to maintain the current conditions at all costs. Ukrainians say we bear the costs, we fight not only for our affairs, for our independence and freedom, but we also fight for values that are important for Europe.
Minister Siekierski emphasizes that humanitarian and military aid will continue, while economic aid should be provided under clearly defined conditions so as not to disturb the stability of markets. At the same time, he emphasizes that trade goes both ways and Polish producers of e.g. dairy products also want to be able to export to Ukraine, so one must be very careful when postulating the closure of the border.
– Poland exports EUR 52 billion of agri-food products and imports EUR 33 billion, so we have a surplus of EUR 19 billion. Therefore, when we talk about it at the EU level, our colleagues from the European Union and from the committee first say that we should also take this fact into account. During the year, Poland exports 10 times more than in the year of Poland's accession to the European Union, and we have 20 years of presence in the European Union, emphasizes Minister Siekierski.
What's next for the Polish port quay?
The harvest is already in stock, companies want to trade and export grain from Poland or Ukraine and send grain further around the world. However, in the case of the Polish waterfront, we keep hearing about subsequent tenders and the lack of results. The minister also commented on this issue.
– This area of matters is within the scope of the Ministry of Infrastructure, we are trying to ensure that agriports are cleared (…). We want the National Food Group to be the main administrator, but there is nothing wrong with it if there are private port managers, because they also want to make money by sending these goods. Ownership is important when it comes to the National Food Group. We are conducting talks, KGS is supervised by the Ministry of State Assets, not by the Ministry of Agriculture, which is also inappropriate, because we have no influence on KGS, and it was supposed to be an institution that was supposed to implement the policy of intervention on the market. We meet with leadership to outline our priorities. We also submit it to the Ministry of State Assets, because there is only one government and it does not matter whether these conditions are set by us or by the Ministry of Assets, if it is to be consistent with the interests of agriculture and the interests of Poland.
The future of agricultural leases and the active farmer
Recently, the president of PSL announced three times higher subsidies for active farmers, while Commissioner Wojciechowski quickly countered that this money would not be enough for everyone. The first signals about changes in the principle of agricultural land leasing have already reached us. The proposed act is primarily intended to support active farmers, but on the other hand not to harm people who lease the land.
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– We are working on the Act on leasing, which will also include the definition, scopes, functions, and certain preferences for the so-called market or commercial farmer. Prime Minister Kosiniak meant that if the lease agreements were formal, official and not just oral, then the farmer who would cultivate the land would also be able to benefit from fuel subsidies and be eligible for eco-schemes. He will also be able to benefit from subsidies if there were droughts or other disasters – said the minister.
In this situation, farmers who rent land should not be harmed either.
We want these farmers to be able to continue using KRUS and other benefits, and who receives the subsidies will be determined in the contract between the parties, between the farmer or the owner who leases the land to another farmer. We want to improve the functioning of farmers who fully participate in the market and are competitive. However, we do not want to weaken the position of small farmers, because these farmers are often dual-professional, are already of a certain age and want to survive on this farm until retirement age. The agreed leases must be long-term with an appropriate notice period, argued the head of the ministry.
Polish Presidency – strategy for changing the CAP and conditions for Ukraine's membership in the EU
From January 1, 2025, Poland will take over the Presidency of the Council of the European Union, during which time the new European Parliament will be constituted and new commissioners will start their work.
– Therefore, we also want to make our contribution, i.e. present a certain vision of the Common Agricultural Policy in the European Union. We have our own experiences, we have the experiences of the European Union, but we also have these relations with Ukraine in mind. Excessive openness towards Ukraine, and therefore also negotiations with Ukraine on membership. This membership will probably not be that quick, but it can be said that Ukraine is already largely in the EU because it has access to the market, therefore we have to propose all this at the European level. What should the EU do to support Ukraine so that grain from Ukraine is exported to world markets? (…) We need to create certain regulations, even some kind of financial support for Ukraine for exports. We want there to be joint Polish-Ukrainian ventures, guaranteed by the governments.
The minister emphasizes that the proposals also concern joint processing to convert more raw materials into biofuels.
The biggest challenge for the next 20 years of Polish agriculture in the EU
20 years in the European Union is a time of summing up, but also of making plans for the next decades. In a conversation with the minister, please indicate the main challenge in Polish agriculture.
Minister Czesław Siekierski quotes the statement of one of the farmers, who noted that farmers are afraid of the future. This was caused by the too far-reaching requirements of the Green Deal and too much openness to goods not only from Ukraine, but also from Mercosur countries and other third countries.
– That's why I hear "we don't have stability." They also express it on behalf of consumers, because farmers are aware that they provide and secure food for society, in the right quantity, but also of the right quality. They also say: "We want to fulfill this goal, but we must ensure profitability and stability. Don't make demands that are unreasonable. We, farmers, know how to cultivate the soil well, we know when to sow, what constitutes good humus accumulation, what improves water relations, we know how to take care of animal welfare. Therefore, do not try to impose too many administrative requirements, we want it all to be under social control, dialogue is needed in the food chain." The farmer is in a situation where he has no influence on the prices of means of production, fertilizers, plant protection products , fuels, machines have no impact on the prices of the raw materials they sell. Therefore, farmers are in a difficult financial situation. Therefore, farmers must receive some kind of support and must organize themselves to be a strong entity in relation to the producers of means of production were organized in relation to the recipients of their products. So that they could say these are the production costs, we want it to be at these prices and society must also understand that as consumers, when we buy food, we finance agriculture, we do not finance farmers, we only finance the production process. Farmers must use the funds obtained from sales to buy additional production resources to maintain production continuity. It should be taken into account that work in agriculture, despite mechanization, requires extensive knowledge, continuous supervision and systematicity – says Minister Siekierski at the end.
