The increased subsidies serve the productivity of the hungarian agrarium

By: STA Date: 2022. 12. 01. 09:00

Those who make a living from agriculture are faced with countless challenges to which they must find answers. High energy and input prices, animal diseases, and the historic drought have made their daily lives difficult in recent years, but despite this, they persevered, and it is thanks to them that the domestic food supply is safe – said Sándor Farkas in his opening speech at the Agrárszektor 2022 conference.

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The Deputy Minister of the Ministry of Agriculture was pleased to announce that the role of agriculture has increased in value, it has become an unavoidable strategic sector, and the social esteem of those working in agriculture has also increased significantly. Sándor Farkas called it a historic opportunity that the European Commission adopted the Hungarian Strategic Plan of the Common Agricultural Policy at the beginning of November, with a five-year budget totaling 14.7 billion euros, i.e. more than HUF 5,300 billion. Almost half of this is provided by the Hungarian government, and 8.4 billion euros are coming from Brussels. More than half of the rural development resources, almost HUF 1,500 billion, will go to economic development, and more than HUF 1,000 billion will serve sustainability goals. Both are significant expansions compared to the previous ones, as is the scope of the appreciating expenses related to the transfer of knowledge, which has doubled.

Efficiency in agricultural production can be the key to survival, said the deputy minister

He emphasized that in order for the sector to remain competitive, it is essential to run ahead, and modernization is necessary even if the economic environment is not favorable for this. He recalled that the government helps farmers’ liquidity in several ways. As an example, he mentioned the loan moratorium, the interest rate freeze, and the fact that, from October 17, advance and installment payments of EU subsidies, which were HUF 322 billion higher than last year, were launched. So far, HUF 250 billion advances have been allocated to 150,000 farmers. In relation to climate change and the extraordinary drought that is also affecting our country, he emphasized that the renewal of water management in the Great Plain is unavoidable. He reminded that the regulation of the Tisza was significant in the 1800s, but today we are complaining about its negative effects. He stated that the Great Plains must return to retaining water and winter precipitation. With these steps, as well as with the necessary water management facilities, it will take 10-15 years for the groundwater level to normalize, said Sándor Farkas.

Many people overestimate the role of agriculture in the acceleration of the effects of climate change

While according to UN statistics, agriculture and land use change together are only responsible for 18 percent of greenhouse gas emissions, and animal husbandry only accounts for 5-6 percent of that, said the Deputy Secretary of State for Agricultural Markets of the Ministry of Agriculture at the round table discussion on climate change. Tamás Tarpataki indicated that, of course, everything must be done in agriculture to mitigate the negative effects, and subsidies help farmers in this. As he said, it is necessary to strive for a balance between the plant growing and animal breeding sectors, since it would be much more difficult to properly protect our soils without a supply of organic matter.

The drastic increase in food prices was also discussed

At the discussion organized under the title “A wave of rising prices in the domestic food market”, the Secretary of State responsible for the food industry and trade policy of the Ministry of Agriculture said that the ministry is committed to ensuring that high-quality and safe Hungarian food is on the table of Hungarian families. He then touched on the fact that the government supported the Hungarian food industry with HUF 468 billion during the previous European Union development period, between 2014 and 2020, and HUF 750 billion was allocated for food industry development in the next financial cycle until 2027. Márton Nobilis pointed out that thanks to the national fund, two tenders for the sector were already opened in 2021. One supported small-scale developments of food industry plants, and the other focused on the complex renovation of food industry plants. In the framework of these, it was possible to apply for a non-refundable grant of up to HUF 5 billion. According to the state secretary, an industry can be successful if it can stand up on the domestic markets as well as on the international stage, for this it is essential to know the specifics of the area, as well as to implement related targeted developments, he added.


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