Good Practice - Project
Development of services provided to farms in the Jaraczewo community
A farmer and service provider used CAP funds to purchase a modern combine harvester that would allow him to respond to a client’s demand for services related to growing a new crop (namely corn for seeds) in the area.
General information
RDP Priority
- P2. Competitiveness
RDP Focus Area
- 2A: Farm’s performance, restructuring & modernisation
RDP Measure
- M06: Farm & business development
Beneficiary type
- Farmer / land manager
Summary
Ireneusz Adamiak farms cereals, corn and beets in Strzyżewko, in the Wielkopolskie Voivodeship of west-central Poland. With his machinery, Ireneusz also provides sowing services to neighbouring farms. As more and more local farmers began to show an interest in growing corn for grain, Ireneusz decided to use CAP support to purchase a combine harvester suitable for harvesting corn for grain. This would allow him to expand his business activities and meet the increased demand for this type of service.
Results
- The investment has allowed Ireneusz to acquire new customers and increase the scope of the services he provides.
- His revenue has increased by approximately PLN 50 000 in the first year of operation.
Promoter
Ireneusz Adamiak
Funding
Total budget: 1 410 816 (PLN)
RDP contribution: 500 000 (PLN)
Private/own: 20 000 (PLN)
Other: 890 816 (PLN)
Ressourcen
Good Practice Report - Development of services provided to farms in the Jaraczewo community
(PDF – 1.54 MB)
Context
Ireneusz Adamiak’s farm is located in Strzyżewko, in the Wielkopolskie Voivodeship of west-central Poland. Ireneusz grows cereals, corn and beets on several dozen hectares, but production has become more and more difficult due to rising costs and frequent extreme weather conditions. Ireneusz also runs a company that provides sowing services (for cereals, corn and beets) to neighbouring farms. As demand was growing, he decided to increase and expand the range of services he could offer. Based on an analysis of nearby farms, he identified a growing interest in growing corn for grain. Many neighbouring farmers were planning to start this type of cultivation, but the price of the equipment made it unprofitable for a single farm to purchase. Ireneusz therefore decided to expand his own services, updating his machinery fleet with the addition of a combine harvester with corn cultivation attachment.
Objectives
The aim of this project was to expand Ireneusz’s business activities through the provision of new services, concerning the cultivation of corn for grain. The acquisition of new, specialised machinery would ensure business growth and increased profitability.
Activities
Project activities included:
- Analysing the market potential and drawing up a plan for the provision of new services. The farmer conducted an analysis of his existing clients, in terms of their machinery resources and needs, as well as those of new potential clients, i.e. nearby farms who might become future clients for the services he would offer. The analysis showed a strong potential for developing the services.
- Selecting the appropriate machine for the planned activities. Ireneusz searched for the best solution, taking into account the power of the machine and the necessary technical parameters. In addition to the inclusion of a foldable corn attachment, a GPS device to enable field mapping and a crop moisture sensor were crucial. These innovations would be key to providing specialised services that addressed local needs.
- Preparing a business plan for the investment.
- Preparing the documentation required for submitting the application for co-financing under the measure M06 - Development of farms and business activities of the Rural Development Programme 2014-2020 of Poland.
- Obtaining an investment loan to co-finance the project.
- Purchasing a combine harvester with an attachment for corn cultivation.
Main results
- Thanks to this investment, Ireneusz is able to provide more services.
- New customers have been acquired. The number of farms serviced in the district has increased, with many small farms now able to grow their own corn for grain, thanks to the availability of external specialised services.
- Ireneusz’s revenue has already increased by approximately PLN 50 000 in the first year of operation.
- An additional effect is better and more efficient cultivation of Ireneusz ‘s own land, which translates into time and cost savings.
Key lessons
- Farmers are becoming more and more skilled in calculating the profitability, costs and risks of agricultural production. This is why there is an increasing demand for external services that provide technologically advanced machines that perfectly meet the needs of farmers/customers in response to a changing market. In this context, CAP support plays a significant role in modernising agriculture by replacing equipment that is outdated and less technically advanced.
The development of agricultural production requires more effective running, especially of small and medium-sized farms, which is possible when using external services, which is why I decided to provide such services for local farmers.
Contact Information
Tel: +48 660 048 317