Magazine: Rural Development Programme commences

The first grant programmes in the government’s HUF 1,300 billion Rural Development Programme (VP) will be announced this autumn. In addition to the HUF 206-billion sum available from this budget, food industry companies can also apply for funding from the Economic Development and Innovation Operative Programme (GINOP). Within the framework of the VP environmental management for agriculture (AKG) and ecological farming programmes will be announced first. There are going to be special grants for young farmers and they will also get 10 percent more funding in various financing schemes. Payment will start next year – in a degressive fashion that definitely favours SMEs – and the winners will have to commit themselves for a 5-year period. For instance the subsidies for agricultural land use will be granted as follows: 100 percent up to 300 hectares, 85 percent between 300 and 1,200 hectares and 50 percent above 1,200 hectares. Those who wish to switch to ecological farming will have to commit themselves for 5 years if they want funding from the HUF 51.5-billion budget (farmers can apply only on the online platform of the Agricultural and Rural Development Agency, between 7 November and 7 December).