Barbara Chmielewska

Institute of Agricultural and Food Economics - National Research Institute, 

e-mail: chmielewska@ierigz.waw.pl

Influence of Social Benefits for Economic Situation of Farming Families

ABSTRACT. Farmer insurance contributions are lower than non-agricultural insurance contributions. Old-age pensions and pensions for farmers are lower than old-age pensions and pensions from non-agricultural social insurance system. Social benefits significantly influence the financial situation of farming families. The role of social benefits in the average farming family budget increases. Under conditions of European integration Poland is not obliged to introduce new insurance system, neither new social benefits nor to change the rules of calculating the amount of benefits.  KRUS has become the institution co-operating with the relevant institutions from countries of European Union. This article includes also description of farmer’s insurance in Poland called KRUS and its influence on income situations of polish farmers. It was made by using descriptive analysis. Organization structure, tasks and KRUS’ rules of action as well as pension and retirement importance in income was described. This analysis shows also polish insurance system in comparison with another EU’s countries. Polish farmers are covered by farmer's insurance system, which is serviced by an institution established solely for that purpose, that being the Agricultural Insurance Fund (KRUS).

Received: December, 2008

1st Revision: January, 2009

Accepted: March, 2009

JEL Classification: D1, Q12, J65

Keywords: Social benefits, farming family budget, farmer's insurance system, Agricultural Insurance Fund (KRUS)