An agricultural and rural development tender worth HUF 1 billion has been published

(Photo: AM/Tibor Vermes)

At the Rural Conference 2024 event, the head of the ministry said that in the current support period, with the maximum national co-financing of 80 percent, which is unique in the EU, Hungarian agriculture can be renewed with a total of about HUF 5,300 billion. He emphasized: agricultural and rural development programs are the biggest driving force for the economy of rural settlements, and rural development subsidies help the balanced development of regions and communities. He highlighted: more than HUF 1,435 billion in support requests have so far been received for the six agri-food investment tenders that have been opened so far in the second half of this year. The past 14 years also show that it is worthwhile to invest capital, innovation, knowledge and labor in agriculture, the minister stated. According to his description, territorial productivity increased by 126 percent, which is the fifth best result among EU member states, and the sector’s profitability rose at the second highest rate in the Union, by 121 percent. Investments amounting to HUF 667 billion were realized last year, which is 55 percent higher than the 2020 value. The output of the agricultural sector increased by 32 percent between 2010 and 2023, while it decreased by 20 percent between 2004 and 2010. Similar processes can be observed in the food industry. After a 16 percent decrease in performance between 2004 and 2010, the sector increased its output by 34 percent between 2010 and 2023, he explained.

According to István Nagy, the government should help the sector players

In this way, supporting them to find the right technologies, product types, and establish producer collaborations, and thus turn to more profitable, premium products. This is helped by the fact that the vast majority of investment applications are related to higher value-added agricultural sectors – food processing, animal husbandry, horticulture – he pointed out. Employment is another important pillar of the livability of the countryside, he pointed out. In the past 14 years, the improving employment environment nationwide has also improved the labor market situation of people living in rural areas – said the minister, adding that they want to involve as many young people as possible in agriculture. He emphasized: the development of a family-based agricultural model based on small and medium-sized farms is a priority agricultural policy goal. About 55,000 family farms operate, and the number of small producers who also sell food directly to consumers has increased four and a half times to 23,000 since 2010. In recent years, the government has supported 14,000 small farms in the amount of HUF 77 billion, he underlined. Speaking about the EU’s agricultural policy, he said that the government proposes rethinking the KAP subsidy distribution system and optimizing “green measures”. “We envisage a farmer-centered agricultural policy that respects European traditions, in which, in addition to preserving the liquidity of farmers, the food security of European citizens is a priority,” said István Nagy.

MTI