1. Andrzej HAŁASIEWICZ, PhD
Poland’s accession
Andrzej HAŁASIEWICZ, PhD
RURBAN Rural-Urban-Regional

2. Important factors
Will
Strategy
People
Institutions and procedures

3. Main objectives of agricultural policy:
Joining European Union strategic goal of Poland from the beginning of 90s
Main objectives of agricultural policy:
restructuring and modernization of agriculture and food processing sector,
improving living conditions and infrastructure on rural areas,
integration agricultural policy with CAP

4. Agricultural policy reform process (Stage 1)
Stage 1- fundamental policy reform process – 1989/1990:
Liberalisation and deregulation of the economic system,
opening of domestic market,
introduce real exchange rate of Polish currency
real interest rate and cost of credit
Changes in the agricultural sector:
elimination of subsidies to consumer prices of food and to prices of agriculture inputs,
privatization of state farm, food processing and trade sectors,
liberalisation of agricultural trade.

5. Agricultural policy reform process (Stage 2)
Stage 2 - International agreements and liberalisation of agricultural trade:
Association Agreement with the EU (1992) followed by the European Agreement,
Trade Agreement with the European Free Trade Association (EFTA),
Membership in Central European Free Trade Agreement (CEFTA),
Membership in GATT/WTO.

6. Agricultural policy reform process (Stage 3)
Integration process with the EU:
Gradual improvement of agricultural competitiveness
Submission of formal application for EU membership
Gradual adjustment to the EU requirements:
Began accession negotiations
Step-by-step adjustment to the EU veterinary and phytosanitary standards
Formulation and implementation of a Coherent Structural Policy for Development of Agriculture and Rural Areas – 1999
Trade liberalisation agreements with the EU in agriculture
Adjustment to the changing EU Common Agricultural Policy (moving target)

7. FAPA Foundation of Assistance Programmes for Agriculture Programmes
Analysis
CID Centre of Information and Documentation
Experts
Human resources

8. Role of the public sector in improving the competitiveness
Ensure stable macroeconomic condition
Strategic planning:
Coherent strategy for development of Polish Agriculture and Rural Areas, 1999
National Program of Adoption of Acquis Communautaires (NPAA),
Coordination and monitoring of policy and strategy implementation,
Regulatory functions for veterinary, plant health and food safety
International trade negotiation (WTO, liberalisation agreements),
Gradual harmonisation of national law with CAP,
Providing objective information,
Conduct consultations and maintain dialog with social partners,
Promotion of domestic agricultural products (Program: Fine Polish Food)
Introduction of Quality Management Systems (examples: ISO 9000, HACCP, GAP)

9. Coherent Structural Rural and Agricultural Development Policy
A. Halasiewicz
Director of Preacession Assistance and Structural Funds Department
Ministry of Agriculture and Food Economy
presentation at rural and agricultural attaches meeting
19 October 1999

10. Medium-Term Agriculture and Rural Development Strategy
Coherent Structural Rural and Agricultural Development Policy BACKGROUND
Medium-Term Agriculture and Rural Development Strategy
National Programme for the Preparation to the EU Membership
New Approach to Agricultural Modernisation and Development of Rural Areas
Territorial Reform - New Regional Policies
Preparations for SAPARD and Structural Funds

11. Consultation with Social Partners - (Dec. 98)
Coherent Structural Rural and Agricultural Development Policy TIMETABLE
Consultation with Social Partners - (Dec. 98)
Interministerial Consultations -(Dec.98-June 99)
Approval of the Council of Ministers - (July 99)
Dissemination - (September- November 99)
Implementation:

12. Coherent Structural Rural and Agricultural Development Policy SITUATION IN RURAL AREAS
dispersed settlement pattern
(56.8 thousand villages, 80% of which have less than 500 inhabitants)
population by sources of income
(27.4% from agriculture and 35.1% from non-earned income sources)
educational attainment of rural population
(only 1.9% with higher education, 54.6% with priminary or unfinished primary eduction)
condition of rural infrastructure
regional differences
condition of the natural environment
health qualities of food products

13. size structure of farms
Coherent Structural Rural and Agricultural Development Policy SITUATION IN AGRICULTURE
size structure of farms
avarage size of private farm about 7 ha, 2 million farms, a growing number of the biggest and smallest farms
structure of production
40% farms have mixed production pattern
marketable production
only 47.5% farms produce for the market
value of marketable production.

14. Coherent Structural Rural and Agricultural Development Policy
Problems of rural areas
Problems of agricultural sector
Problems of the environment

15. 1. PROBLEMS OF RURAL AREAS
Coherent Structural Rural and Agricultural Development Policy MAIN PROBLEMS (1)
1. PROBLEMS OF RURAL AREAS
monoproduction in some regions, and as a result, overreliance on agricultural income, insufficient off-farm employment opportunities and limited non-farm income;
high registered and hidded unemployment;
low rural incomes limiting an effective demand for non-agricultural products and services;
insufficient technical, social and cultural infrastructure;
insuffient education and qualifications of rural population;
limited access to business support services;
limited level of economic, cultural and social activities by rural population;
weak organisations and institutions supporting rural development
marginalisation of rural cultural heritage.

16. 2. PROBLEMS OF THE AGRICULTURAL SECTOR
Coherent Structural Rural and Agricultural Development Policy MAIN PROBLEMS (2)
2. PROBLEMS OF THE AGRICULTURAL SECTOR
low agricultural incomes,
fragmented farm structure,
ill-adjustment of agricultural production (both quality and quantity) to consumers’ needs,
weak market organisation and insufficient links within the marketing chain,
not enough on-farm investments;
insufficient farmers’ skills in terms of production technology, marketing and management,
weak farmers’ organisations.

17. 3. PROBLEMS OF THE ENVIRONMENT
Coherent Structural Rural and Agricultural Development Policy MAIN PROBLEMS (3)
3. PROBLEMS OF THE ENVIRONMENT
local threats to the natural environment in rural areas
environmental facilities on farms
management of marginal land
high construction costs of environmental facilities.

18. Coherent Structural Rural and Agricultural Development Policy MAIN OBJECTIVES (1)
I. CREATING ADEQUATE LIVING AND WORKING CONDITIONS WHICH ALLOW RURAL DWELLERS TO PURSUE THEIR ECONOMIC, EDUCATIONAL, CULTURAL AND SOCIAL OBJECTIVES
improvement of technical infrastructure
improvement of social infrastructure
creating conditions for the development of non-agricultural economic activities

19. Coherent Structural Rural and Agricultural Development Policy MAIN OBJECTIVES (2)
2. TRANSFORMATION OF AGRICULTURAL STRUCTURES SO AS TO FACILITATE ADJUSTMENT OF AGRICULTURE TO THE CHANGING ECONOMIC AND SOCIAL SITUATION
improvement of farm structure;
farm modernisation - improvement of quality and processing of agricultural products;
strengthening of farmers’ role in the food chain;
implementation of biological improvements.

20. Coherent Structural Rural and Agricultural Development Policy MAIN OBJECTIVES (3)
3. CREATION OF CONDITIONS FOR SUSTAINABLE DEVELOPMENT OF RURAL AREAS, PROTECTION OF NATURAL RESOURCES AND CULTURAL HERITAGE
reduction of negative impact of agriculture on environment and protection of agricultural areas against negative impact from the industry;
promotion of environmentally-friendly farming methods (in alia organic agriculture) with particular focus on areas of the high nature value or particularly sensitive to environmental changes;
management of marginal land, including afforestation;
training and demonstration activities;
protection and promotion of rural culture (art, crafts, folk, and regional traditions)

21. Coherent Structural Rural and Agricultural Development Policy EXPECTED RESULTS (1)
Changed employment pattern, i.e. more off-farm employment along with more jobs for additional income (complementary to agriculture);
improved education of rural dwellers so that they had skills and qualifications suitable for employment in agriculture, off-farm or both;
improved infrastructure increasing attractiveness of rural areas as place to live and do business

22. Coherent Structural Rural and Agricultural Development Policy EXPECTED RESULTS (2)
improved farm agrarian structure (farm size structure, production structure and quality)
improved links between producers and agri-food markets
maintained and improved natural, landscape and cultural heritage values of rural areas
improved administrative and institutional structures serving agriculture and rural development

23. SAPARD Programme in Poland
Ministry of Agriculture and Rural Development

24. Strategy of the SAPARD Programme in Poland Justification
Compliance with rules and objectives of Regulation 1268/99
Based on the analyses of needs of Polish agricultural and rural sector in view of EU accession
Confirmed by a broad consultation process with 1,500 regional and socio-economic partners
Targetted due to limited resources
Balanced allocation of funding between agricultural and rural development priorities

25. Strategic objectives of
the SAPARD Programme
Improvement of the economic competitiveness of the Polish agri-food sector in both domestic and international markets
Adjustment of the Polish agri-food sector to sanitary and hygiene standards of the Single Market
Encouragement of multifunctional rural development, especially via developing technical infrastructure and creating conditions for non-agricultural economic activities in rural areas

26. Priority Axis 1: Improvement of Efficiency of Agri-Food Sector
Measure 1: Improvement of processing and marketing
of food and fishery products
about 38.1% of public funds
(priority of NPAA, high costs
of adjustment to EU standards,
benefits to primary producers)
Measure 2: Investments in Agricultural Holdings
about 18.1% of public funds
(need to ensure hygiene and quality standards
in priority sectors)

27. Priority Axis 2: Improvement of conditions for economic activities and job creation
Measure 3: Improvement of rural infrastructure
about 28.9% of public funds
(importance for acquis adoption and enterprise development, lack of rural infrastructure)
Measure 4: Diversification of economic activities in rural
areas
about 10.7% of public funds
(need to induce creation of additional sources
of income for farmers)

28. Complementary Axis: Improvement of Human Capital
Measure 5: Agri-Environmental and afforestation pilot projects
about 1.7% of public funds
(need to adopt acquis and protect biodiversity)
Measure 6: Vocational training
about 2,1% of public funds
(for farmers, need to develop
human capital)
Measure 7: Technical assistance
about 0.4% of public funds
(needed for effective
management of the Programme)

29. Role of the private sector in improving the competitiveness
Be an active partner with government in the discussion on policy objectives and measures,
Establish producer groups and marketing groups to improve competitive position in the market,
Promote high quality products, implement standards and quality management systems,
Improve competitiveness on domestic and international markets by adopting new strategies:
Cost leadership (e.g.: soft fruits, poultry meat, milk, mushrooms)
Differentiation strategy (e.g.: Polish goose - Klobucka, Polish ham)
Focus strategy (e.g. organic products, Fine Food Program, designations of origin, geographical indication)

30. Accession negotiations
Negotiations lasted for 2,5 years and ended on
„The Agriculture” chapter was the most difficult (many regulations, almost ½ of the EU budget)
The most important were:
Production limits(allowing for development of sectors)
Financial conditions (allowing to compete on the Single Market)

31. Accession negotiations
Original Negotiation Position of Poland:
1. All obligations of membership; all membership rights (100% direct payments)
2. As many obligations as rights
Original Position of the EU:
1. All obligations
2. All obligations; „0” direct payments
3. All obligations; „25% of direct payments

32. Accession negotiations
Compromise:
October 2002: Agricultural budget EU to 2013
All obligations; „25% direct payments+ phasing in
Transition periods (veterinary requirements, dairies, meet processing plants)
Production limits

33. Financial Conditions
In the period of agriculture and rural areas could receive ca. 7.2 bn EUR from the EU funds.
On average 2.4 bn EUR per annum (twice more than the expenditure to agriculture in 2002).
This 7.2 bn EUR included:
Direct payments (40%)
Rural Development Programme (32%)
Sectoral Operational Programme (17%)
Market intervention and export subsidies (11%).

34. General assessment of negotiations
The assessment should include internal and external factors.
The benefits of integration should not be measured purely on financial transfers from the EU:
Faster economic growth
Foreign direct investment flow
Stabilisaton of agricultural markets
Cultural change.

35. May 1, 2004, enlargement: Historic process -
COMPROMISE
Results of accession negotiations in agriculture

38. Poland’s fears – no longer justified
Instead of anticipated problems with implementation of CAP in Poland – good performance.
In place of expected flood on Polish market by the EU-15 products - substantial increase of Polish exports (more than twice).
Limited effect of food price increase on inflation.

39. A Success Story
Poland’s negotiations and assession turned out to be succesfull.
The key element of this success was the good preparation of the sector and the good preparation of negotiators.

40. Our celleagues in Brussels
Czesław Siekierski
Jerzy Plewa
Iwona Lisztwan
…and many others

41. Thank you for your attention