Financial Aspects of the Common Agricultural Policy for the Environmental Sustainability of Polish Agriculture

Abstract

The purpose of the article is to characterise the implementation of financial instruments for environmental sustainability in Polish agriculture within the framework of the Common Agricultural Policy (CAP). It includes the assessment of the effectiveness of their allocation based on the extent to which the funds were used compared to the opportunities established due to membership in the European Union (EU). It mainly refers to a part of the rural development measures (CAP Pillar II): the agri-environmental programmes (AEP), payments for areas with natural handicap or other specific restrictions and afforestation of agricultural land. The descriptive and comparative analysis referred to the periods: 2004–2006, 2007–2013, 2014–2020, and plans for the CAP in 2021–2027 showed that the EU gradually increased the value of the financing and scope of implementation of the mentioned measures, however as a result of the CAP reform for the years 2014–2020 their importance has been limited due to increased funding of so-called greening of direct payments. The way of implementation of domestic agricultural policy was critically assessed in the light of use of these opportunities. It was proven by the effects of the Polish authorities’ decisions on relatively low (compared to the Union’s average) financial value of the AEP and other pro-ecological operations, which is a derivative of relatively small amounts allocated for the CAP Pillar II.