Hungarian corn producers received six billion forints in compensation

By: STA Date: 2024. 01. 10. 09:30

A total of HUF 5.9 billion in compensation payments were made by the end of last year to mitigate the losses of Hungarian farmers who suffered damage as a result of the serious disruptions in the grain market caused by the war and the sanctions policy. Under pressure from the affected member states, including Hungary, the European Commission provided our country with EUR 15.9 million in funds for this purpose.

As a result of the protracted Russian-Ukrainian war and the failed EU sanctions, the dumping of Ukrainian grain and other Ukrainian agricultural products rushing to Europe put the producers of the region adjacent to the war zone in an extremely difficult situation. In the absence of EU steps, Hungary had to take measures within its national competence to ban the import of agricultural products from Ukraine and strictly control them. In addition to the fact that our country took a stand for the continued maintenance of the import ban, it considered it important that the farmers who suffered damage should also be compensated. Recognizing that the unrestricted import of Ukrainian crops caused serious losses to the agricultural producers of the affected member states, the European Commission allowed them partial compensation. The conditions for the use of the amount, which can be said to be symbolic in relation to the extent of the damage, were developed by the Greyhound Ministry in such a way as to provide targeted and properly interpreted assistance to the farmers who require it. According to the conditions developed with the cooperation of the Ministry of Agriculture, corn producers entitled to compensation could submit their subsidy application to the Hungarian State Treasury between October 1 and 15, 2023. Until the end of 2023, the Treasury paid a total of HUF 5.9 billion in compensation support to farmers.

The support was suitable for partially alleviating the losses occurring in connection with the sale of the 2022 crop

It made it possible to pay a subsidy of HUF 81,000 per hectare for 73,000 hectares of corn-growing land. This helped the most needy, smaller farmers. However, this payment only partially alleviated the adverse effect of the previously unimpeded Ukrainian imports. In order to restore normal market conditions, we will continue to maintain the import restriction measure introduced under national jurisdiction, and in Brussels, together with other affected member states, we will continue to fight for the sake of farmers.