In today's article from the "Lawyer on the Farm" series, we have prepared answers to the questions we most often encounter during conversations about producer groups.
Is there any legal act that regulates agricultural producer groups?
The basic document regulating the functioning of such associations in Poland is the Act of 15 September 2000 on agricultural producer groups and their unions and amending other acts. Another important legal act is the Regulation of the Minister of Agriculture and Rural Development of 9 April 2008 on the list of products and product groups for which agricultural producer groups may be established.
What is an agricultural producer group ?
An agricultural producer group is a business model that involves cooperation between at least five agricultural producers. They undertake joint activities in areas such as production, supply, transport, distribution, and marketing.
What can a group of agricultural producers produce?
The Group may produce, among others:
- cereals and oil plants, sugar beets, tobacco leaves,
- poultry, pigs,
- potatoes,
- horticultural plants,
- organic farming products,
- cow's milk, bird eggs, fruits and vegetables.
Is it profitable to establish producer groups?
We believe this is a truly excellent investment. Through collaboration, producers who form groups can achieve numerous benefits—both financial and non-financial. These include:
- greater farm efficiency,
- higher profits for group members (possibility of using subsidies),
- scaling the agricultural business,
- stabilization of product sales,
- higher quality products,
- greater environmental protection,
- optimization of transport and production costs,
- greater negotiating power of the group on the market,
- improving the processes of introducing innovations in agriculture,
- joint investment in machinery and vehicles,
- jointly promoting their products,
- tax relief – exemption from real estate tax and corporate tax.
Can agricultural producers count on subsidies?
The answer to this question is undoubtedly of greatest interest to you. Agricultural producers can benefit from EU funding under the intervention "Creation and Development of Producer Organizations and Agricultural Producer Groups." Funds can be received in the form of an annual lump sum – for a maximum of five years. The subsidy amount depends on the value of the agricultural producer group's documented annual net revenue and represents a specified proportion of it:
- 10% for the first year of operation,
- 9.5% for the second year of operation,
- 9% for the third year of operation,
- 8.5% for the fourth year of operation,
- 8% for the fifth year of operation.
The maximum annual amount of such financial support is €60,000 – up to €6,000 per group member. This means that over the five years of its operation, it can receive up to approximately PLN 1.3 million. The basic condition is maintaining the business for at least three years and implementing the adopted business plan within five years.
We now warmly invite you to read the next article, in which we will explain who can set up a group and how to do it.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of April 16, 2025
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