The time has come for farm transfer contracts in agriculture

By: STA Date: 2022. 12. 07. 09:30

A key question not only for agriculture, but for the entire Hungarian society and the countryside, is who will produce the food in the future – pointed out Zsolt Feldman, the State Secretary of the Ministry of Agriculture responsible for agriculture and rural development, at the Agribusiness Conference organized for agricultural university students.

(Photo: Pixabay)

The Secretary of State spoke about the fact that the issue of young farmers is extremely important, which is why the Ministry of Agriculture consciously deals with encouraging the generational renewal of agriculture. One of the main pillars of this work is to introduce young people to the fact that this is not only a beautiful, value-creating profession capable of providing a living, but also a technologically advanced, knowledge-intensive sector. The other pillar is the operation of the financial and regulatory incentives necessary for this, an important element of which is the law on the transfer of farms that will enter into force on January 1, 2023, just like the preferential treatment of young people in the agricultural support system.

And how do they try to encourage generational renewal? asked the state secretary

He called the most important next milestone the economic transfer law, which will enter into force at the beginning of next year. As he said, the farm transfer contract would eliminate the difficult life situation for everyone, into which a single death can plunge a farm. At the same time, the contract could make the handing over and taking over of a working farm smooth, for example the taking over of agricultural land, support entitlements, permits or contracts.

That’s what the law says

The law enables producers who have been farming for at least 10 years and who are at least 5 years before retirement, as well as their relatives who are at least 10 years younger than them, under the age of 50, or employees who have been employed for at least 7 years, to enter into a farm transfer contract and thus make the handover easier reminded Zsolt Feldman. In addition, in the agricultural support system starting in 2023, they intend to financially support the party taking over and handing over the farm within the framework of the farm transfer contract. The extent of this can be up to 50-70 thousand euros for the transferor of the farm, and up to 40-100 thousand euros for the recipient of the farm. This solution makes the later life of the retired person who transfers his income-producing farm more secure.

In addition, they intend to support the investments of young farmers with an increased support intensity of 65%, and there will also be start-up support for them, also combined with a development obligation – said the state secretary.