photo - SXC
The rise in insurance payments for farmers will being in an estimated 83 million zloty (19.7 million euros) to the state budget.
On small farms, farmers with holdings in excess of six hectares will now pay one zloty for every hectare above that limit.
Premiums relating to farms of less than six hectares – covering all family members – will continue to be paid for by the Agricultural Social Insurance Fund (KRUS).
The KRUS (Agricultural Social Insurance Fund) was introduced in 1990. Until now, average quarterly payment for a single farmer with no spouse or children amounted to just 260 zloty (50 euros).
In 2005, the KRUS system encompassed 1,563,233 people paying insurance fees, while pensions and disability payments were paid by the system to 1,621,980 people.
When Poland joined the EU there were around 2 million farms, many simply strips of land with subsistence levels of production.
In 2010, Poland's Constitutional Tribunal, a supervisory panel of 15 judges, ruled that it was unconstitutional that the state was paying premiums for farmers regardless of their earnings.
Prime Minister Tusk announced his plans to amend legislation, during his major policy statement in November, having won the 9 October general election.
The law was passed by parliament on 13 January.
Many political parties have been promised a reform of the system, which entails different social insurance systems for rural and urban workers, for years and Prime Minister Donald Tusk’s government saw the reform of KRUS would be more politically acceptable during times public spending cuts and austerity budgets.
But Wladyslaw Serafin, president of the National Union of Farmers, objects to the Constitutional Tribunal's ruling from the outset, and he is preparing an appeal.
As regards the current leglislation, farmers claim that they were not consulted over the amendment and that it was rushed through.
The new stipulations are in fact temporary and will last until 31 December 2012.
From 2013 onwards, the insurance payments will be reorganised according to farmers' earnings. (pg/nh/ss)