In such circumstances, the Ministry of Agriculture made an offer to farmers with an interest-free loan to purchase the necessary materials, even those that are needed for spring sowing. In this way, the Ministry wants to support farmers in financial difficulties.
The preferential loan project has been prepared so that the farmer has the opportunity to purchase fertilizers, fuel, plant protection products and seeds before setting off into the field.
The loan will be revolving against subsidies that will be directed to farmers in some time.
Farmers will be able to find such loans in banks that will sign relevant agreements with the Agency for Restructuring and Modernization of Agriculture. They are usually cooperative banks, as they have had credit lines on preferential terms for many years. A farmer interested in receiving a loan should first go to the ARiMR facility to obtain specific information about the size of the single payment that will be due to the farm. Then you will need to visit the bank and conclude the final loan agreement.
An average of PLN 450 per hectare
It is estimated that the size of the loan will amount to about PLN 450 per hectare (at this level a single area payment is shaped).
The loan will be subject to zero interest rate. In addition, representatives of the Ministry of Agriculture are negotiating with banks in terms of the smallest amount of credit commission granted.
Credit agreement for 6 months
On the subject of loans to farmers, the Council of Ministers has already adopted the relevant regulation. At this time, it is only awaiting the signature of the Prime Minister and publication in the Journal of Laws. Then, within 14 days of its publication, it will enter into force. Thanks to this, the credit line will be available before starting field work.
It is assumed that the loan for farmers will be granted for a semi-annual period (6 months). Even if the farmer gets a payment the day after submitting the application, he will still be able to use the credit line for a full half year. The intention of the introduced mechanism is for the farmer to supplement his financial deficiencies, which occur usually in the period from spring sowing to subsequent harvest. Usually it is about 6 months, followed by harvest and proper farm income is generated.
The Ministry of Agriculture is planning that applications for loans on preferential terms can be submitted as early as at the turn of February and March.