Nearly 20 thousand decisions on granting ecological payments to agricultural producers were issued by the Agency for Restructuring and Modernization of Agriculture late, which had an impact on the delay of some payments – the Supreme Audit Office (NIK) points out in its latest report. Their total amount amounts to over PLN 520 million. As NIK points out, irregularities may result in a reduction of EU funds for Polish organic farmers and weaken their competitiveness on the European market.
In its latest report, NIK reminds us that, in accordance with EU and national regulations, “organic farming applies the most beneficial measures for the environment and climate, focuses on a high level of biodiversity, protection of natural resources and is guided by rigorous animal welfare standards”.
“Organic production is to meet consumer demand for high-quality food and contribute to the common good through environmental protection and rural development,” we read. The latest NIK audit concerned the correctness of granting and settling financial aid to support organic farming in 2019-2023
Late decisions and their consequences
NIK reported that since the launch of financing under the “Organic farming” measure of the Rural Development Programme 2014-2020, i.e. from 2015 to 30 September 2023, the Agency for Restructuring and Modernisation of Agriculture has paid beneficiaries a total of nearly PLN 2.94 billion out of slightly over PLN 3.81 billion, or 77% of the limit of funds allocated for this measure. Payments to beneficiaries of the Rural Development Programme 2014-2020 will be made until the end of 2025.
“The Agency for Restructuring and Modernisation of Agriculture issued decisions on granting payments under the 'Organic farming' measure of the Rural Development Programme 2014-2020 in an untimely manner, which was inconsistent with the Act on supporting rural development with the participation of funds from the European Agricultural Fund for Rural Development under the Rural Development Programme for 2014-2020. In the 2018-2022 campaigns, 19,430 decisions were issued in violation of this provision, for an amount exceeding PLN 520 million,” we read.
Decisions concerning farmersNIK
“The untimely issuance of decisions granting ecological payments resulted in the extension of the deadline for their implementation, which in turn constituted a violation of the regulation of the European Parliament and of the Council of the European Union on the financing, management and monitoring of the common agricultural policy. In the 2018-2022 campaigns, 1,194 payments were made in the amount of almost PLN 8.4 million in violation of this provision,” we read.
NIK would like to point out that the post-audit conclusions in this respect from the NIK audit conducted in 2018 were not implemented.
Moreover, in the opinion of the Chamber, “the supervision of the Minister of Agriculture and Rural Development over ARiMR proved ineffective in this respect”.
The incompetence of state institutions can be costly.
“Untimely payment of ecological payments (..) creates the risk of the European Commission reducing payments to Poland under the European Agricultural Fund for Rural Development. This carries the risk of weakening the competitiveness of Polish organic farming,” warns NIK.
Organic farming without a strategy
The report noted that in Poland “there was no separate national strategy for the development of the organic farming sector”.
“The framework action plans for organic food and farming do not specify the sources of their financing or the amount of financial outlays for organic farming, nor do they specify the target values ​​of the indicators for the implementation of individual actions for the development of organic farming. According to NIK, this may have an adverse effect on the correct and rational financial support for organic farming, as well as on the proper assessment of the effectiveness of the implemented projects,” we read.
As added, in the years 2019-2023, no annual reports on the implementation of the framework action plan for organic food and farming were prepared, although such practice existed in previous years. “Despite the lack of legal obligation to prepare such reports, the preparation of these documents would contribute to effective monitoring and undertaking adequate measures to further support organic farming” – it was assessed. NIK pointed out that the total area of ​​organic agricultural land increased by only 9.3% over the four years – from 507.6 thousand ha in 2019 to 554.6 thousand ha in 2022. “Therefore, with such a rate of growth and not fully proper functioning of the mechanism supporting organic farming, there is a risk of failure to achieve the goal adopted in the framework action plan for organic food and farming for the years 2021-2030, i.e. doubling the area of ​​organic agricultural land by 2030 and reaching over one million hectares of this area” – the NIK concluded.
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