Production and sales processes must be re-evaluated

(Photo: AM/István Fekete)

At the Portfolio Agricultural Sector Conference, István Nagy also spoke about the completion of next year’s tender schedule for agricultural and rural development subsidies, the express purpose of which will be to promote planning and predictability. The first tenders are expected to be announced from the beginning of 2024 in the field of forest management, and then new tenders will be gradually opened in 64 legal titles. From 2026, all tenders will be announced again in the previous form – he emphasized. Therefore, everyone can apply in two phases in this cycle, which, among other things, provides an opportunity to optimize one’s own resources – he explained. Regarding this year’s schedule, he explained that the first tender package for agricultural and food industry investments is expected in the spring, which also affects investments in the feed industry, horticulture and animal husbandry. It is planned to start the subsidies for land use change in the spring, for which it will be possible to apply for a multi-year maintenance subsidy later, he added. The call to help the generation change can be prepared by the summer, then the rural development tenders and the announcement of a new tender package are expected in the fall, which support precision farming or the technological renewal of crop cleaning and drying – he said. The minister called the launch of the country’s largest agricultural and food industry development program in 2021 the most important professional process in recent years. The calls for tenders for the tripled rural development funds were closed at the end of this year, within the framework of which HUF 340 billion were paid for investments this year – he pointed out. He pointed out that there has never been such a large allocation of funds for rural development purposes as between 2021-2023, in which this year is an absolute record. He added that rural development grants were provided to increase efficiency and create added value, a total of HUF 404 billion last year and HUF 610 billion this year. Among the results of this year, he mentioned that the new agricultural support system started smoothly. He reminded that after the unprecedented drought that hit the year 2022, sufficient rainfall fell this year, which is extremely important for next year’s crop as well. This year, Ukraine’s exports to Europe caused a difficult situation on the grain market, which is why the Hungarian government maintains the import restrictions and continues to fight for EU-level internal market protection, he said. “It is in vain that we protect the domestic market if we also want to sell our agricultural products on the EU market,” he noted.

In this way, the efficiency of crop production can be improved

Speaking about the future, István Nagy also touched on the fact that improving efficiency and purchasing common input materials in traditional plant cultivation, and the use of lower-cost, less intensive cultivation technologies in areas with poorer conditions may be justified. In the case of the main arable crops, the cultivation of special varieties that are more in demand on the market, and cereals with a high protein or fiber content, can provide a solution. “We need to think about how other field crops can be included in production in addition to the main crops, be it soy, sorghum, butterfly-flowered crops or even field crops,” he said. Among the possibilities of adaptation necessary due to market difficulties, he mentioned the transition to organic farming, for which support can be obtained next year. “Focusing on growing potatoes and onions, we must become self-sufficient by 2030. We will provide all the help we can to achieve this,” he emphasized.

MTI