As expected, farming activity increased the 2nd quarter of 2025. The agriculture confidence index (IRGAGR) rose in comparison to the 1st quarter of 2025 by 1.5 pts. Typically, farming activity grows in the 1st quarter due to vegetation seasonality. This time, however, the improvement is weaker than usual. The reason is that farmers’ sentiments diminished, esp. of those who breed animals. Undoubtedly, the decline in farmers’ sentiments was effected by the deepening gap between the animal and plant production profitability. This gap is also manifesting in the drop in purchases of feed concentrates and the increase in expenditure on fertilizers and plant protection products. Farmers decreased investments and they are less willing to take loans. Nevertheless, IRGAGR remains higher than a year ago (by 6.3 pts), so the growing tendency that began in the 2nd quarter of 2023 is continuing to develop.
Researches:
Konrad Walczyk, kwalcz1@sgh.waw.pl
Piotr Szajner, irg@sgh.waw.pl