The Agency for Restructuring and Modernisation of Agriculture (ARMA) was established in 1994 with the aim of supporting the agriculture and rural development. ARMA has been designated by the Government of the Republic of Poland to perform the role of an accredited paying agency. It deals with the implementation of instruments co-financed from the European Union budget and provides aid from national funds. The Agency, as the performer of agricultural policy, cooperates with the Ministry of Agriculture and Rural Development. At the same time, ARMA is under supervision of the Ministry of Finance within the scope of managing public funds.

Organizational structure

The Agency for Restructuring and Modernisation of Agriculture is headed by the President appointed by the Prime Minister of the Republic of Poland upon the request of the Minister of Agriculture and Rural Development and the Minister of Finance. The structure of ARMA comprises three levels - the Headquarters, 16 Regional Offices in each voivodship and 314 Local Offices.

Who do we help?

Farmers, rural inhabitants, entrepreneurs and local governments are the main beneficiaries of measures implemented by ARMA. The Agency provides aid also to the entities from the fisheries sector.

The scope of activity

In 2007 Poland entered a new period of programming and financing the European Union aid. In the years 2007-2013, ARMA will be implementing the aid instruments financed from new European funds:

• European Agricultural Guarantee Fund (EAGF), under which the Agency will continue the implementation of aid instruments under the first pillar of the CAP (direct payments, common organization of the market in fruit and vegetables, common organisation of the fisheries market). The funds allotted for Poland under this fund amount to EUR 14 billion from the EU.

• European Agricultural Fund for Rural Development (EAFRD), from which all measures concerning the rural development (the second pillar of the CAP) will be financed - the funds planned for Poland under this fund amount to EUR 13,2 billion from the EU.

• European Fisheries Fund - the allocation planned for Poland under this fund amounts to EUR 657 million from the EU.

The amounts provided for Poland under the aforementioned funds will be complemented by national funds from the State budget and private sources.

ARMA will also continue the measures within the framework of the state aid but under the new Community guidelines on public aid in the agriculture and forestry sector.

Tasks performed

Direct payments

Direct payments are the instrument of income support for farmers. Polish farmers have been included in the single area payment scheme. Financial support is granted to the farmers proportionally to the crop area. Polish farmers were paid the direct payments for the first time in 2004 after the accession of Poland to the European Union. A group of around 1,4 million beneficiaries was granted PLN 8,6 billion.

In 2008, ARMA conducts the fifth campaign of direct payments.

• Rural Development Programme (for Poland) for 2007-2013

The Rural Development Programme for 2007-2013 enables the continuation of the modernisation and development process of Polish food and rural areas launched in the previous years. It is a programme that, according to the EU intention, complements the Common Agricultural Policy. Under EAFRD, which finances the RDP in this period, Poland received EUR 13,2 million that together with the national funds constitute a total budget in the amount of EUR 17,2 billion.

The Rural Development Programme for 2007-2013 was adopted by the European Commission at the meeting of the Rural Development Committee on 24 and 25 July 2007.

The following measures will be implemented under the RDP 2007-2013:

Axis 1: Improvement of the competitiveness of the agricultural and forestry sector

• Vocational training for persons employed in the agriculture and forestry sectors,

• Setting-up of young farmers,

• Early retirement,

• Use of advisory services by farmers and forest owners,

• Modernisation of agricultural holdings,

• Increasing the added value of agricultural and forestry production,

• Improvement and development of  infrastructure related to agriculture and forestry,

• Participation of farmers in food quality schemes,

• Information and promotion activities,

• Producer groups.

Axis 2: Improvement of the natural environment and rural areas

• Support for farming in mountainous regions and other areas with less favoured conditions for agricultural production (LFA),

• Agri-environmental programme,

• Afforestation of agricultural land and afforestation of non-agricultural land,

• Restoring forestry potential destroyed by natural disasters and the introduction of prevention instruments.

Axis 3: Improvement of the quality of life in rural areas and diversification of rural economy

• Diversification of economic activities

• Creation and development of micro-enterprises

• Basic services for rural population and economy

• Village renewal

 Axis 4: LEADER

• Implementation of local development strategies

• Implementation of cooperation projects

• Functioning of the local action groups, skills acquisition and animation

Operational Programme - "Sustainable Development of the Fisheries Sector and Coastal Fishing Areas for 2007-2013"

In the years 2007-2013, like in the previous programming period, the Agency will be implementing the programme of modernisation and development of the fisheries sector. In 2007, the Agency started the implementation of the Operational Programme "Sustainable Development of the Fisheries Sector and Coastal Fishing Areas for 2007-2013" that will be financed from the European Fisheries Fund. The Programme consists of 5 priorities for which public funds (EU and national) in the amount of EUR 870 million have been provided. The priorities proposed in the Programme envisage the support of undertakings leading to a stable balance between the marine and inland resources and the fishing capacity of the Polish fishing fleet. The aforementioned goal is to be achieved by means of: adaptation and modernisation of fishing vessels, support for fish breeding and inland waters fishing, improvement of the standards of fishing ports and fish processing establishments, and animation of local communities.

The Agency will continue the implementation of payments on the grounds of undertakings under the Programme.

Common Market Organisation for Fruit and Vegetables and Common Organisation of the Market in Fishery Products

The aid provided by ARMA under the Common Market Organisation for Fruit and Vegetables concerns the market of fresh as well as processed fruit and vegetables.

Within the market of fresh fruit and vegetables, the fruit and vegetable producer organisations are supported by means of:

• Co-financing of the operational funds of those organisations;

• Aid granted to provisionally recognized producer organizations for the establishment costs, the costs of administration, and co-financing of investments;

• Withdrawal compensation for fruit and vegetables.

The aid for the market of processed fruit and vegetables is directed to tomato producers providing tomatoes for processing through a provisionally recognised producer group or a recognised fruit and vegetable producer organisation.

The financial aid for fish producer organisation is the most important element of the common organisation of the market in fishery and aquaculture products.

State aid  

The Agency for Restructuring and Modernisation of Agriculture continues the provision of aid from the national funds in the form of subsidies to interest on investment credits. Banks cooperating with the Agency grant the credits from own funds to the entities engaged in fruit and vegetable production or processing.

Until 30 April 2007, the credits with ARMA subsidies to interest were granted under the so-called existing aid that, on unchanged conditions, could be offered only within the period of three years from the accession to the European Union. The new credit agreements (since 1 May 2007) are concluded on changed conditions resulting from the adjustment to the EU provisions. The conditions are presented in the Regulation of the Council of Ministers of 26 April 2007 concerning the detailed scope and directions of ARMA's activities and the methods of their execution (Journal of Laws No. 77,item 514), which came into force on 1 May 2007.

The Regulation provides for granting of the financial aid by ARMA to farmers and agricultural product processing establishments in the form of:

• subsidies to interest on investment and "natural disaster" credits granted from own funds of the banks that have concluded a proper agreement with the Agency,

• guarantees and securities for repayment of investment and "natural disaster" credits.

Rural Development Plan 2004-2006

ARMA continues the realization of measures implemented under RDP 2004-2006, the budget of which amounted to EUR 2 790 million. Around 320 thousand beneficiaries took advantage of the measures under RDP 2004-2006. About 700 thousand beneficiaries annually benefits from the "Less Favoured Area Support Scheme (LFA)" measure launched under this Plan. The aforementioned measure is continued within the framework of the Rural Development Programme for 2007-2013.

Until 31 December 2008, ARMA paid the beneficiaries under the Rural Development Plan the total amount of PLN 13 744 million.

Sectoral Operational Programme "Restructuring and modernisation of the food sector and rural development 2004-2006"

ARMA continues the realization of payments under SOP "Restructuring..." the budget of which amounted to EUR 1 790 million. Around 46 thousand beneficiaries availed themselves of 9 measures implemented by ARMA. Until 31 December 2008, ARMA realized under this Operational Programme  for the total amount of PLN 6 362 million.

Sectoral Operational Programme "Fisheries and Fish-Processing 2004-2006"

ARMA continues the realization of payments under SOP "Fisheries..." the budget of which amounts to EUR 280 million.

The beneficiaries from the fisheries sector submitted 4 785 applications for financial aid for the total amount of PLN 1 537 million. Until 31 December 2008, ARMA was realized payments for the total amount of PLN 792 million.