145 thousand farmers received advance payments by the end of November

By: STA Date: 2024. 12. 05. 10:30

The second advance payment period of the new period of the Common Agricultural Policy has ended, within the framework of which 145 thousand farmers received 317.8 billion forints in support. The area- and animal-based agricultural subsidies paid primarily provide compensation for compliance with mandatory production standards that negatively affect the profitability of farmers’ agricultural activities, but are beneficial from an environmental perspective.

(Photo: Pixabay)

Due to the economic difficulties of recent years – such as the significant increase in input costs, high loan interest rates, low producer prices or this year’s drought – it is of particular importance that more advances were allocated to farmers in 2024 than ever before. All this is due to the fact that the government created the necessary financial and professional conditions. Following the unified applications submitted this spring – during the advance payment period between October 16 and November 30, 2024 – the Hungarian State Treasury paid out a total of HUF 317.8 billion under 17 titles. This amount is HUF 123.7 billion, or 64 percent, higher than a year ago. The payments reached 92 percent of the applicants, approximately 145 thousand producers, for whom the mandatory control processes related to the payments were successfully completed. In the case of a new agricultural support cycle, the first year is always a learning year, so compared to 2023, institutional mechanisms that are already more established this year could have helped with the advance payment.

The largest amount, 166.8 billion forints, was paid to nearly 142.2 thousand producers under the basic support title

The Hungarian State Treasury transferred 48 billion forints to 141.7 thousand farmers under the redistributive support title, which provides additional support for the first hectares of smaller farms. Advance payments could also be made to young farmers in the form of additional income support. Furthermore, under nine production-related support titles, a total of 25.3 thousand producers in the arable vegetable, fruit, beef, milk and sheep sectors received 26.1 billion forints.

Of the area- and animal-based rural development subsidies applied for in the framework of the single application, three received advance payments

11,400 producers received HUF 48.7 billion under the agri-environmental management program operated as part of the Rural Development Program, and 2,700 producers received HUF 13.5 billion under the organic farming support program. The keeping of native animals was supported by an advance payment of HUF 1.7 billion. After the advance payment period has ended, the Hungarian State Treasury will make partial and final payments in December.