AM: reference prices, average yield data and specific cost savings for the 2025 damage mitigation allowance have been published

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The announcement sent to MTI details that this year, affected producers can also submit their application for damage mitigation allowance electronically from the beginning of November, which they can do on the Hungarian State Treasury website under the Electronic Application Management›Agricultural Risk Management System menu item. The application can be submitted multiple times within the submission deadline, but the State Treasury and the agricultural damage assessment body will take into account the last application submitted by 24:00 on November 30, 2025.

Farmers are reminded that the submission deadline of November 30, 2025 is null and void.

In the application for damage mitigation benefits, the target year and reference yield value of the crop can be determined using the specified reference prices. In the case of crops for which a price range is established in addition to the reference price, a price different from the reference price, but falling within the price range and confirmed by an invoice or production contract, can also be used to calculate the reference yield value. More detailed information about this and about submitting the application – in which village economists also provide assistance – is available on the website of the Hungarian State Treasury, the announcement said. If the producer does not have his own yield data for a crop for any year of the reference period, the published average yield data for 2020-2024 may be used to determine the reference yield. In addition to the average yield data for 2020-2024, the average yield data for 2025 are also available, which must be used in the application for the damage mitigation benefit only if the producer does not have his own yield for the relevant year available because the harvest level of the crop does not yet exceed 50 percent. The Ministry of Agriculture may revise the published reference prices and average yield data for the reference period if appropriate (e.g. based on the final KSH data). The reference data modified within the framework of the review are only relevant for the current year’s damage mitigation allowance and do not entitle the producer to subsequently modify the application for damage mitigation allowance of previous years – they were informed.

According to the announcement, the basis for the damage mitigation allowance is the difference between the current year’s yield value and the reference yield value, i.e. the yield value reduction

When determining the damage mitigation allowance, the amount of cost savings resulting from the yield reduction must be deducted from the yield reduction of the damaged crop. Based on the Decree of the Ministry of Agriculture 27/2014. (XI. 25.) on certain issues related to the payment of the damage mitigation contribution and the use of the damage mitigation allowance, the amount of the specific cost savings (HUF/ha) is published by the ministry on its website – per crop. The amount of the damage mitigation benefit may not exceed 80 percent of the yield reduction, provided that the affected farmer has appropriate agricultural insurance or crisis insurance membership. In the absence of this, he is entitled to half of the damage mitigation benefit otherwise due to him. Appropriate agricultural insurance means agricultural insurance covering at least half of the farm-level reference yield value – for the given damage mitigation year – and covering the damage event typical of the damaged crop, such as drought, cloudburst, hail, agricultural flood, spring frost, autumn frost, winter frost or storm. The State Treasury will decide on the application for damage mitigation benefit by the end of March 2026 at the latest and will make payments to farmers who have suffered verified damage, the Ministry of Agriculture informed.

MTI