Report on farmers debt - over 412 million USD in debt!

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Weather fluctuations, spring drought did not allow farmers to sleep peacefully in many regions of Poland. This year’s cereal harvest turned out to be much lower than in 2017, while in the case of fruit growing the opposite was true. The trees gave more fruit than last year.

However, as the KRD Report informs about farmers’ debt, nevertheless the owners of many farms have noted losses, which overshadowed their finances. In addition, the emergence of the African swine fever virus has already affected many farms. If you add the low purchase prices, you get the idea of ​​financial help. What lies ahead? What is the financial situation in Polish agriculture? Where to go for the money you need? What can influence the institution’s decisions? We answer.

Situation in agriculture

Situation in agriculture

Last year’s above-average cereal harvest could not be enthusiastic, despite the fact that weather fluctuations echoed in the agricultural sector. Not in all voivodships, farmers had reason to be happy, some due to increased downpours could not drive into the field with harvesters and collect all the crops. Other lands hit a spring drought this year, which accelerated grain growth and thus reduced quality and production potential. Let’s not forget about weather anomalies, which in many regions prevented the farmers from acting properly. In addition, numerous storms and storms also brought material losses. Repairing damaged buildings or agricultural machinery requires a lot of money from farmers.

The National Debt Register is one of the registers belonging to the Economic Information Bureau. Collects economic information not only on debts, but also on timely repayment of liabilities. The consumer and business can reach the KRD database. In the case of individual customers, a negative entry may result in unpaid payments exceeding USD 200, while in the case of companies it is USD 500.
National Debt Register about yourself :
We are the largest platform for the exchange of economic information in Poland – we have been collecting and sharing data on the financial situation of consumers and companies (both large corporations and small enterprises) for over 14 years.

Let’s remember about farms keeping animals

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2018 also did not spare them. Despite the increase in the number of cattle and pigs resulting from the statistics of the Central Statistical Office of Poland, a decrease in calf and piglet farming was recorded compared to last year, which may overshadow farmers’ finances next year. As if that was not enough, the ASF virus spreading in Poland – African swine fever – hits other farms in Poland. Currently, the places subject to restrictions, where cases of illness occurred or is suspected, are areas along the eastern border of Poland. This results in a reduction in the sale of not only pork, but also all products of their origin.

The financial condition of farmers is also not conducive to low purchase prices or failure to meet payment deadlines. Openly talk about the advantage of the broker over the manufacturer. Farmers admit that sometimes it is more profitable to sell grain after traveling several dozen kilometers than at a purchase several kilometers away. Everyone must finally sell their crops, which is why realtors are not willing to increase their rates.

All these factors affect the emergence of financial problems that can hinder the work on obtaining crops or animal husbandry. An opportunity to overcome the crisis is to invest in the next year. However, what if we already know that we do not have enough money to carry out the next harvest or keep cattle or pigs? Thinking about upcoming responsibilities, many farmers decide to get financial help. On September 20, the KRD Report on the debt of Poles in the agricultural sector was published, and the figures given in it raised many industry portals and financial services.

KRD agriculture report

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According to data collected by the National Debt Register, the agricultural sector’s debt is over USD 412.5 million. This amount best reflects the financial problems that farmers face. Only the fact that compared to last year this amount decreased by about USD 42 million can be optimistic. However, within five years an increase of USD 280 million was recorded! What has improved the situation of farmers this year? The KRD report on farmers’ debt indicates that EU subsidies are undoubtedly of great importance for this industry and for the others. According to the Agency for Restructuring and Modernization of Agriculture, farms received over USD 704 million for:

  • help in the fight against losses caused by frosts, thunderstorms and ASF virus
  • assistance in repaying currently drawn loans
  • assistance in covering the costs of utilization of fallen stock at farm.

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