MBH Bank: the income of agriculture can increase by up to HUF 160 billion per year through investment applications

By: STA Date: 2024. 10. 04. 10:45

From 2026-2027, the agricultural industry’s income could increase by up to HUF 160 billion per year through the investments made in the framework of the rural development tenders that have just been launched, this would mean an increase in income of more than 10 percent for the sector – MBH Bank’s agricultural and food industry business forecast based on the survey of the credit institution.

In their announcement sent to MTI on Thursday, they explained: according to their investigation, about 70 percent of customers with a sales revenue of more than HUF 300 million plan to invest in 2024-2025. The announcement reminds us that in the current period of the Common Agricultural Policy until 2027, thanks to the maximum 80 percent domestic co-financing, a record HUF 1,500 billion development resources are available to the Hungarian agricultural and food industry, as well as a new element of interest subsidies.

This represents 15 percent of the sector’s HUF 10-11 thousand billion annual output, or 1-1.5 years of income

Levente Szabó, MBH Bank’s deputy general manager responsible for individual services, highlighted in the announcement that as the largest banking partner of Hungarian agriculture, it is of utmost importance to offer new advantages to businesses in this defining period.

MBH Forrás offers expert assistance to agricultural enterprises, from the monitoring, preparation and management of tenders to the closing of projects – they indicated

According to experts from MBH Bank’s agricultural and food industry business, development subsidies can generate HUF 2,000-2,500 billion worth of investment in the period up to 2027. “Taking into account the expected increase in sales revenue and profit per tender, this could result in an additional income of HUF 150-160 billion per year at current prices, which would mean a 10-15 percent increase in the sector’s income,” they wrote. In addition, the investments can reduce external dependencies of the sector, such as exchange rate fluctuations or weather factors – Dávid Hollósi, the executive director of the business, pointed out in the announcement.

According to the preliminary results of the MBH Bank survey, the desire for development has increased since the beginning of the year

Currently, 68 percent of customers with a sales revenue of more than HUF 300 million plan to invest in 2024-2025, of which 48 percent indicated to the Commissioner their intention to apply, and 38 percent said that they will most likely apply, even for several legal titles. More than 80 percent of the respondents would use bank financing in part or in full for the self-reliance required in addition to the investment subsidies, and almost 90 percent would take advantage of the expected possibility of interest and guarantee fee subsidies, it was explained in the announcement.

MTI