2014: a transitional year in funding

The main driving force behind development in the food sector is the various subsidies offered by the European Union and the national budget. Until 2020 Hungary will receive EUR 8.8 billion in the form of direct funding from the EU and the European Agricultural Fund for Rural Development will give us another EUR 3.4 billion. Probably in the middle of the year the new tenders will be announced. Since a new budgetary period (2014-2020) is starting, this year is going to be a transitional one. Hungarian farmers will get EUR 227 (approximately HUF 68,000)/hectare land-based subsidy. 2015 will bring an important change in the system of direct subsidies: 30 percent of the funding will only be available if certain environmental requirements are met. Small farms can decide whether to apply for funding through a simplified scheme – a maximum sum of EUR 1,250 per year will be available this way – or to stay in the current system. As regards the funding from European Agricultural Fund for Rural Development, it will be a favourable change that VAT payment becomes eligible for subsidy.