Organic payments as a form of support for organic agriculture in Poland

Abstract

Purpose – The purpose of this article is to conduct empirical research which contributes to determining the interest in enjoying organic payments made to farmers under the “Rural Areas Development Program” in the area of the Framework Action Plan for Organic Food and Farming in Poland. Research method – The method of a literature review and analysis coupled with statistical analysis based on the calculation of structure, dynamics and correlation indicators were used in the work. The dynamics of organic payments received by farmers during the period 2014-2018 was assessed. A comparison was also made of the value of organic farming payments with budget expenditure on agriculture in Poland. Results – The obtained correlation coefficients were utilised to assess the relationship between the expenditure under the program and the expenditure of the state budget on agriculture. The correlation coefficient calculated for the number of beneficiaries and the value of ecological payments is 0.17201. The correlation coefficient for the value of organic payments and the value of budget expenditure on agriculture and hunting is -0.3406167. Originality /value/ implications /recommendations – An attempt was made to evaluate the role of organic payments in Poland as a form of motivating farmers to undertake organic production. Since 2014, the number of organic processing plants has increased by 88%. The decrease in the number of producers and increase in the number of processing plants may indicate a change in the structure of the supply chain in the area of organic food.