Small farms are the winners of the advance payment period of agricultural subsidies

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The advance payment is a major help for the farmers to carry out the autumn agricultural work without disturbance, and also ensures the financial stability and liquidity of the producers. Already in the first two weeks of the advance payment, i.e. until the end of October, 112 thousand farmers, i.e. 73% of the producers who submitted subsidy applications, received subsidies.

The advance payment started with the significant payment of two area-based rights affecting the largest group of producers, as well as with support tied to production that helps ensure the domestic milk supply

Among the area-based subsidies, HUF 75.8 billion reached 110,000 producers in two weeks from the basic subsidy, which is beneficial from an environmental point of view, but provided in exchange for the fulfillment of conditions that limit production and reduce farmers’ incomes. The average payment per producer was HUF 710,000. The averages often obscure the distribution of the true size, so it is also worth adding that payments were made for more than 80,000 requests in the case of farms not exceeding 10 hectares. In addition to small farms, 27% of all recipients of payments belong to the group of small and medium-sized family farms larger than 10 hectares but not exceeding 150 hectares, for which advance payments were made for slightly more than 30,000 applications. So far, less than 2% of the paid applications, slightly more than 2,000 producers, are connected to farms with an area of ​​more than 150 hectares. Due to the size of their businesses, the most vulnerable farms will receive the fastest help, the state secretary added. This is also confirmed by the fact that the other area-based subsidy, the payment of which has started, is especially beneficial for small and medium-sized farms, i.e. farms not exceeding 150 hectares.

Within the framework of this so-called redistributive support, HUF 75.8 billion was allocated to 110,000 producers by the end of October, i.e. in two weeks

Zsolt Feldman emphasized that the financial resources necessary for the payments are fully available. A question that regularly arises is who can get an advance. The Hungarian State Treasury can generate the payment depending on the conclusion of the checks affecting the given farmer. The uniform applications for 2024 were submitted by almost 160,000 producers for approximately 5 million hectares. The advance payment is continuous and lasts until November 30, 2024, after which it will continue in the form of partial payments until mid-December.

AM