Polish agriculture struggles with rising production costs and climate extremes

Polish farm owners face a mixed outlook in 2026. A seasonal rise in the IRG SGH business confidence index lifted the agricultural conjoncture score by 2.7 points in the second quarter, yet the index remains 12.8 points below its long‑term average. The improvement is limited by high production costs for fuel, mineral fertilizers and electricity, low grain prices, geopolitical tensions and adverse weather such as spring droughts and frosts.

Farmers have reduced spending on artificial fertilisers and machinery, while purchases of feed and building works have only marginally increased. They anticipate further confidence gains in the third quarter.

In the Świętokrzyskie region, Dr Mirosław Korzeniowski highlighted severe frosts reaching –8 °C, causing substantial losses. He noted that EU‑funded storage facilities have helped, but climate‑driven challenges require costly mitigation measures like anti‑frost wind turbines and overhead sprinklers. Water scarcity, regional differences in water access, and lengthy bureaucratic procedures for well construction exacerbate the situation. The current 65 % state subsidy for agricultural insurance is considered insufficient, especially for horticulture, prompting calls for reform.