CAP, Innovation and ESG: Polish Agriculture at a Crossroads

The transformation of agriculture in the face of new environmental, technological and market challenges is becoming one of the key topics of the economic debate. Sector leaders, politicians and experts emphasize that the future of the Common Agricultural Policy, innovation and sustainable development will determine the competitiveness and food security of Europe.

CAP, Innovation and ESG: Polish Agriculture at a Crossroads

/ Partner Material

During the European Economic Congress, agriculture was in the spotlight as one of the key sectors for the future of the economy. The panel “Polish agriculture on the threshold of transformation”, led by Iwona Dyba and Anna Kobus from the farmer.pl portal, discussed the main challenges facing the industry. The discussion was attended by representatives of government administration, agricultural organizations and companies working for the modernization and development of the sector.

The conversation focused on changes in the Common Agricultural Policy (CAP), the implementation of environmental objectives and new EU regulations, ESG reporting and the role of innovation in building more sustainable agriculture.

The future of the CAP

The panel began with a discussion on the future of the Common Agricultural Policy, focusing on its role in ensuring food security. The Minister of Agriculture emphasized the need to continue direct payments, drawing attention to the need to balance social, trade and environmental goals, especially in the context of farmers' insufficient preparation for the Green Deal.

— There is no doubt that the Common Agricultural Policy should be continued. The CAP has significantly contributed to ensuring food security, product availability, quality and affordable prices. Unfortunately, farmers' incomes do not always reflect their efforts. The Green Deal has additionally exposed shortcomings in their preparation. The future CAP must take into account social, global and trade aspects, maintaining balance — emphasized Czesław Siekierski, Minister of Agriculture and Rural Development.

Vice-President of the National Council of Agricultural Chambers Robert Nowak drew attention to the need to protect the CAP budget from inflation and to adapt the policy to regional conditions. He emphasized that food security today includes not only quantity, but also quality and consumer health, which requires appropriate financing.

Czesław Siekierski, Minister of Agriculture and Rural Development

The CAP has contributed significantly to ensuring food security, product availability, quality and affordable prices. Unfortunately, farmers' incomes do not always reflect their efforts.

— The CAP should continue to prioritize food security. Historically, it was about ensuring an adequate amount of food, but today health and product safety aspects are also key. However, this has its costs. That is why the CAP must remain a separate EU policy, and its budget should be indexed to inflation. With seven-year budgets, inflation significantly reduces the real value of funds, which was particularly visible after the outbreak of the war in Ukraine — noted the vice-president of the National Council of Agricultural Chambers.

Robert Nowak proposed searching for alternative sources of financing for pro-environmental activities in order to relieve the burden on the main agricultural policy funds.
— The CAP budget is decreasing, and the number of obligations is growing. A reasonable solution would be to separate financing for pro-environmental activities from the CAP budget and look for other sources for them — emphasized Robert Nowak.

Innovation and Sustainability

The transformation of Polish agriculture towards sustainable development was another key topic of discussion. Representative of Corteva Agriscience Poland Paweł Trawiński praised Polish farmers for the effective use of EU funds since 2004, but also pointed to challenges related to weather, regulations and the need for predictable support for innovation.
— Since Poland's accession to the EU in 2004, farmers have made excellent use of funds for modernization, mechanization and land purchase. They are role models, but they face numerous threats: changeable weather, trade restrictions or bans on the use of certain plant protection products. Farmers need a clear vision of agricultural development, a stable legal framework and financial support for innovation — emphasized Paweł Trawiński, Country Leader Poland, Corteva Agriscience Poland.

Paweł Trawiński, Country Leader Poland, Corteva Agriscience Poland

Since Poland joined the EU in 2004, farmers have made excellent use of funds for modernization, mechanization and land purchase. They are role models, but they face numerous threats: changeable weather, trade restrictions and bans on the use of certain plant protection products.

BASF Polska representative Anna Zalewska discussed the company’s dual approach to sustainable agriculture, combining low emissions with providing solutions that increase farm resilience. She emphasized that innovations must support profitability, which is key for farmers.
— The transformation of agriculture towards sustainable development is progressing. We are working on low emissions, while at the same time providing farmers with tools that help them cope with climate change and maintain efficient production. Profitability is key for farmers, which is why we design all our innovations with the aim of increasing the efficiency of their farms — noted Anna Zalewska, Advocacy Manager, BASF.

Anna Zalewska, Advocacy Manager, BASF

The transformation of agriculture towards sustainable development is progressing. We are working towards low emissions, while providing farmers with tools that help them cope with climate change and maintain efficient production.

The expert also emphasised the importance of cooperation in the value chain, pointing out that the goals of sustainable agriculture require joint actions of all stakeholders.
— Cooperation across the entire value chain is key. We cannot achieve the goals of sustainable agriculture, improving production efficiency or ensuring farm profitability on our own — said Anna Zalewska.

Regulation, bureaucracy and ESG

Łukasz Czech, farmer and president of AgroWE, drew attention to the huge administrative burdens related to the CAP, emphasizing how much work farmers have to devote to bureaucracy. At the same time, he appreciated initiatives such as Agriculture 4.0 and appealed for better cooperation with officials.
— In Poland, we have 340,000 developing farms. Each of them spends one day a week analyzing the CAP, filling in forms and planning production in terms of environmental requirements. Assuming that an hour of work costs 10 euros, this gives 3.6 billion euros per year of invaluable effort by farmers. Programs such as Agriculture 4.0 are valuable, but they require better cooperation between farmers and officials — emphasized Łukasz Czech.
Experts gathered at the debate pointed to bureaucracy as a common problem — not just for agriculture. They pointed to digitalization as one of the solutions.

— We need evolution, not revolution. Bureaucracy is a challenge not only for agriculture, but also for other sectors. Digitalization can significantly facilitate these processes — noted Anita Bednarek, Director of Sustainable Development, Goodvalley.

Anita Bednarek, Sustainability Director, Goodvalley

We need evolution, not revolution. Bureaucracy is a challenge not only for agriculture but also for other sectors.

In the same context, the Goodvalley expert drew attention to the importance of agriculture in the energy transition, warning against shifting funds from the CAP to other sectors.

— We cannot talk about decarbonizing industry without transforming agriculture, which is a key part of the economy. In the EU, there are ideas to shift funds from the CAP to energy, but it is worth remembering that agriculture and energy are interconnected and can support each other — emphasized Anita Bednarek.

Joint actions

The inclusion of agriculture in ESG reporting was another important topic during the debate. Anna Zalewska discussed BASF’s activities for sustainable crop protection products, which support farmers in meeting reporting requirements.

— To achieve carbon neutrality in the production of meat, vegetables or grains, we must start with sustainable plant protection products. That is why we invest in innovative technologies and measure the carbon footprint of our products to make it easier for farmers to report ESG — said Anna Zalewska.

The issue of education and engaging young people in agriculture was raised by McDonald's Polska representative Anna Papka. She emphasized the importance of the social aspect of ESG, pointing to the decreasing number of farmers in Europe.

— In the discussion about ESG, we often focus on the environment and not enough on the social aspect. The farming population in Europe is decreasing, and young people rarely choose this profession. That is why educational initiatives such as our programs: Young Farmers or Agrowoman, which encourage young people to get involved in agriculture, are so important — noted Anna Papka, Director of Corporate Relations and Impact, McDonald's Polska.

The conclusions of the debate show that the transformation of agriculture requires cooperation, innovation and new support models. Only integrated actions of administration, business and farmers will allow the sector to effectively respond to the challenges of the future and ensure the stability of food security in Europe.

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