In 2022, 98 percent of damage mitigation benefits were spent on drought damage

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The funds available in the Damage Mitigation Fund could not cover the claim, so the Government awarded an additional subsidy of HUF 41,124 million to compensate them. Together with the latter – using a 20 percent redistribution rate – a total of HUF 50,229 million was paid to producers from Pillar I. 98.2 percent of the damage mitigation allowance paid was related to drought damage, the remaining 1.8 percent was distributed among seven damage types (there were no damage payments for agricultural flood damage in the year). 1.3 percent of the damage mitigation allowance was used for spring frost damage, 0.3 percent for hail damage, and 0.1 percent for storm damage.

The other types of damage received a smaller proportion of the damage mitigation benefit than the latter

Based on the breakdown by crop, 90.4 percent of the damage mitigation allowance was given to the field crops most affected by the straw. Plantation crops accounted for 6.0 percent and field vegetables for 3.6 percent of damage mitigation in 2022. The payments in all business size categories significantly exceeded the value of the damage mitigation contribution paid. In the case of medium-sized enterprises, the damage ratio was the highest, they received 8.7 times their paid damage mitigation contribution as damage mitigation allowance, large enterprises and small enterprises received 7.8 and 7.7 times, while micro-enterprises received 5.4 times their paid contribution they benefited.

AKI PÁIR