Significant help for farmers, damage mitigation support is coming

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In the agricultural risk management system that has been consciously developed over the past decade, the payment of damage mitigation benefits significantly helps farmers carry out spring work and maintain production.

From 2025, thanks to the amendment to the Common Agricultural Policy Strategic Plan, the Agricultural Damage Mitigation Fund has also been expanded with EU funds

This has increased the producer payment and central budget contribution by approximately 10 billion forints annually. With the involvement of EU funds, sufficient funds are available this year, so that the legitimate producer claims established by the agricultural damage assessment body can be paid in full, without redistribution.

Drought caused the most significant damage in 2024

The Hungarian State Treasury will pay out approximately HUF 25.6 billion of the total damage mitigation allowance for drought damage. When determining the eligibility for the damage mitigation allowance and the amount of the damage mitigation support, the State Treasury took into account the damage events that occurred during the damage mitigation period from November 1, 2023 to October 31, 2024, as certified by government agencies.

The Ministry of Agriculture’s main goal is to help farmers’ activities become more profitable

The agricultural risk management system, which has been continuously developing since 2012, contributes to this and to predictability, the first and most important pillar of which is the agricultural damage mitigation system. Two other risk management tools are agricultural insurance premium subsidies and agricultural crisis insurance, which also operate in terms of farmer self-sufficiency.

AM