The purchaser hasn't paid for grain, vegetables, or milk – now what? The answer may not have been satisfactory so far, but as of May 13, 2026, farmers have a concrete protection instrument – a revised and strengthened Agricultural Protection Fund.
Insolvency of a purchase company is one of the most severe risks in agriculture. A farmer doesn't sell his produce to a supermarket; he hands it over to an intermediary, often with a payment term of several weeks. When a purchase company goes bankrupt, the farmer is left with an invoice and no money. The family loses funds for current production costs, loan repayments, and often just basic living expenses. The Agricultural Protection Fund (FOR) – a public compensation system financed by contributions from purchasers – is designed to prevent precisely this.
Where does FOR come from and what is its basis?
The Agricultural Protection Fund operates under the Act of 9 May 2023 on the Agricultural Protection Fund (consolidated text: Journal of Laws of 2025, item 308, as amended). The mechanism is simple: companies purchasing agricultural products pay a percentage of the amounts due to farmers to the Fund. When a purchaser becomes insolvent and defaults on its obligations, agricultural producers may apply for compensation – paid by the National Support Center for Agriculture (KOWR).
Compensation is calculated based on the net amount of unpaid invoices. Importantly, it must fall within the applicant's available agricultural aid limit – and this limit has been one of the system's biggest problems for years.
What changed in May 2026.
The amendment to the Act on the Agricultural Protection Fund entered into force on May 13, 2026, after being signed by the President of the Republic of Poland on May 11 and published in the Journal of Laws on May 12, 2026. The changes are beneficial to both agricultural producers and purchasers. Here are the most important changes:
- The compensation limit for agricultural producer groups, producer organizations, and agricultural cooperatives has increased from €50,000 to €300,000 over three years – a six-fold increase. The previous limit was equal to the limit for individual farmers, which did not take into account the specific needs of entities associating multiple producers and operating significantly larger volumes. The increase in the limit is not due to a direct change in the amount in the Act, but rather to the shift of compensation for groups to the general de minimis aid (Commission Regulation (EU) 2023/2831), which provides for a ceiling of €300,000 over three years – replacing the previous agricultural regime (Regulation (EU) 1408/2013) with a limit of €50,000.
- A second application deadline has also been added : in addition to the previous one (from February 1st to March 31st), applications can now be submitted from July 1st to August 31st of each year. This means that farmers who lose money in, say, March or April don't have to wait almost a year to submit their application – they can do so in the summer.
- For procurement agencies, however , the abolition of penalties for late submission of the annual declaration of contributions to the FOR is crucial . Furthermore, pursuant to Article 3 of the amendment, all proceedings to impose such penalties initiated but not concluded with a final decision are terminated by operation of law as of May 13, 2026.
What about applications submitted before the Act came into force?
This is an important issue for producer groups that submitted applications in 2025 and are awaiting a decision. The new regulations allow the higher limit of €300,000 to be applied de minimis to these cases as well, provided the applicant completes the required declarations or certificates regarding the de minimis aid granted . This means that a previously submitted application doesn't have to be forfeited – it's worth contacting the National Support Centre (KOWR) to check if the case is still pending.
What does it look like in practice?
A dairy cooperative, which brings together dozens of farmers, is experiencing customer problems. A major milk buyer has been in arrears for three months and is filing for bankruptcy. The total amount of unpaid invoices exceeds PLN 1 million net. Until now, the cooperative could only expect compensation equivalent to EUR 50,000 at most, with the remaining losses borne directly by members. Following the changes, the limit increases to EUR 300,000, which, converted to Polish złoty, translates to approximately PLN 1.3 million – an amount that could realistically save the entire group's financial liquidity.
Another case: a fruit grower sold several shipments of apples in September 2025. The purchase closed in November. The farmer learned about the possibility of submitting an application to the Agricultural Fund only in April 2026 – and here comes the good news: he doesn't have to wait until next February. He can apply as early as July or August 2026 under the new, additional recruitment process.
Get help before the deadline
The Agricultural Protection Fund offers real money – but only if the application is submitted on time, with complete documentation, and de minimis. Our law firm can support you at every stage: analyzing documents and invoices for eligibility for compensation, preparing the application and necessary declarations, verifying whether your previous application is eligible for a higher limit, contacting the Agricultural Protection Fund (KOWR) and addressing any formal deficiencies, and representing you in administrative proceedings if the decision proves unfavorable.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of April 29, 2026.
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