The advance payment of direct subsidies begins

By: STA Date: 2023. 10. 16. 09:00

The advance payment of direct subsidies will start on Monday, together with partial payments, farmers will receive a total of HUF 277 billion by the end of the year – announced the Minister of Agriculture at his Monday press conference in Budapest.

(Photo: AM/István Fekete)

According to István Nagy, Hungarian agriculture is going through a period of change, the effects of wars and climate change make production more difficult, the challenges can only be mitigated at the cost of significant efforts. The most decisive is now the Ukrainian grain arriving in the EU without quantitative restrictions and duty-free, which would seize the crop storage capacities and make it impossible for domestic producers, therefore Hungary was forced to take measures under national competence, the minister reminded. Farmers also have to adapt to the new requirements of the common agricultural policy, but all of them were able to submit their applications again amid the changed rules – he emphasized.

According to the minister, due to the uncertainties, all financial assistance has increased in value

Among these, he highlighted the new interest-subsidized working capital financing options, the Max+ plus interest-subsidized loans of the Agrár Széchenyi Card, and the preferential interest loan programs of the Hungarian Development Bank. The government stands by the farmers even in this exceptionally difficult situation, all conditions for the payment of advances are ensured – the head of the ministry added. Zsolt Feldman, the state secretary responsible for agriculture and rural development, highlighted that due to the change in EU agricultural policy, area-based subsidies have decreased in other EU member states, but in Hungary, at the same time, the amount of disbursable resources was maintained with the additional funding of the government. This spring, 155,000 farmers submitted a single application, the advance payment lasts until November 30, the amount is the maximum according to EU law, i.e. 70 percent of the total support amount. This week, 74,000 farmers will receive a total of HUF 54.4 billion, and the redistribution subsidies can be paid out next week, he said.

Eligible farmers can receive this amount

Calculated per hectare, the basic support is HUF 37,900, the redistributive support for small and medium-sized farms is HUF 22,400 for the first 10 hectares, and HUF 12,300 for between 10 and 150 thousand hectares. Among those entitled to targeted sectoral support tied to production, dairy cows, fattening bulls and ewes, and extensive and intensive fruit gardening can count on an advance. Due to the peculiarities of the legal title, the payments for the agro-ecology program are expected next year, said the state secretary.


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