Polish agriculture hit by higher costs, water scarcity and policy shifts

The Central Statistical Office reported a decline in the average national wheat price to 81.73 zł per deciton, lowering the basis for lease rents on state-owned farmland for 2026. A new law on crop insurance, signed by President Karol Nawrocki, simplifies premium subsidies and expands coverage to additional crops, aiming to reduce farmers’ insurance costs.

German agricultural product prices fell sharply in May 2026, with milk, pork and cereals dropping up to 53.5 % year‑on‑year, deepening pressure on European farm incomes. At the same time, wheat contracts on the Euronext MATIF rose 14 % to €229.5 tonne, driven by disruptions to Russian grain shipments through the Azov Sea and higher European corn prices.

Polish cherry growers face a reduced harvest after spring frosts, while larger supplies from Serbia and Turkey help temper EU frozen‑cherry imports. Farmer organisations in Poland warned that the existing insurance system leaves growers vulnerable to climate‑related losses and called for modern, pre‑emptive coverage.

Germany is preparing stricter water‑withdrawal rules and a digital water‑use register to cope with recurring droughts, a move that could influence water management policies across the EU. Polish experts fear that ongoing water deficits may cause the country to lose its status as a net food exporter, threatening national food‑security and export revenues.