Farmers extended preferential loans to make up for damages due to drought

The Polish government has promised to give farmers preferential loans to make up the shortfall due to the damages from this year's drought. The total cost of the disaster is not known yet, but the experts estimate it ruined 10% of all Polish farms and destroyed 20% of crops. Under the draft proposal a part of the loans, as well as insurance premiums would be frozen and the government would subsidize farms taking commercial loans. This, say experts will cost zl. 352 million. The period in which the loans are due has been extended from 24 months to 30 months and the maximum amount of the loan is now zl. 2 million for an average farm and zl. 4 million for highly specialized ones. According to the Prime Minister's plenipotentiary for drought relief Miroslaw Kozlakiewicz the rise in prices of flour and bread are unjustified as the supplies from Agricultural Market Agency (ARR) storage depots thoroughly cover all the demand. (Gazeta Wyborcza, page 22) J.K.