Evaluation of the effects of implementation of Measure 21

This evaluation assesses the CAP Specific Objective 1 (SO1), viable food production, with a focus on the special instrument Measure 21 (M21), which provides extraordinary temporary assistance to farmers and small and medium-sized enterprises (SMEs) involved in the processing, marketing and/or development of agricultural products that were particularly affected by the COVID-19 crisis. The evaluation specifically examines the impact of this instrument on the economic situation of farmers. The geographical area covered by this evaluation encompasses the entire country of Poland.

The evaluation examines whether the definitions of the beneficiary or target group, the scope and conditions for granting aid, the access criteria, the method of selecting operations, and the budget assumptions are coherent with the objectives pursued and whether they correspond to the needs of the beneficiaries.

The evaluation aims to determine whether the contracted projects meet the assumed product indicators and, if so, to what extent. The evaluation criteria applied in this assessment include relevance, effectiveness and efficiency.

This evaluation employs a mixed-methods approach that combines both qualitative and quantitative methods, utilising secondary data. The qualitative methods involve analysing documents, including regulations, reports, and articles. The quantitative methods focus on analysing indicators and comparing the situation of beneficiaries with that of the total agri-food sector.

The evaluation utilises several key data sources. In terms of qualitative data, this includes regulations from the ministry of agriculture and rural development and other official documents related to the implementation of M21. In terms of quantitative data, this includes monitoring data retrieved from applications for the measure submitted by the Paying Agency, as well as official statistical data and data from the Polish Farm Accountancy Data Network (FADN).

The key limitation of this study, as stated in the report, is the insufficient sample size of the selected farmers’ groups in the Polish FADN.

The analysis of the contracting and disbursement status of the funds earmarked for the implementation of M21 demonstrates the relevance and high efficiency of fund distribution among beneficiaries, as the maximum amount of the foreseen funds was utilised.

The largest number of applications submitted came from cattle producers, who represented 41.4% of the total number of cattle holdings in Poland. Pig producers followed, accounting for 49.7% of the total number of cattle holdings, while poultry producers ranked third.

The broad access criteria, which allowed farmers from all over the country to apply and included a range of supported animals from three cattle to over 13 000 broilers, facilitated the achievement of the established output indicators. Consequently, the implementation of M21 was aligned with the assumed objectives and effectively addressed the needs of beneficiaries.

The analysis of external market conditions for slaughter animals, milk and hen eggs in Poland indicates that during the recent market turbulence from 2020 to 2022, there was increased volatility in the purchase prices of major species of slaughtered livestock.

An assessment of the economic situation in the agri-food industries reveals that current liquidity ratios remain at a safe level, and the investment rate exceeds 1.0. This situation allowed producers not only to maintain their operations but also to modernise and upgrade their fixed production assets.

When relating the value of the financial aid granted to beneficiaries of M21 to commodity production in 2020, it was found that sheep owners benefited the most from the assistance provided.

The favourable economic situation in the agricultural markets from 2019 to 2021 was also reflected in the economic performance of farms, particularly those operating on a larger scale, where improvements in farm economic indicators were observed.