The payment of agricultural insurance premium subsidies begins

By: STA Date: 2023. 01. 20. 09:30

The effects of climate change, which can be felt in everyday life, but especially in farming, or last year’s drought situation on a historic scale, emphatically draw the attention of agricultural producers to the fact that it is absolutely worthwhile to use risk management tools – pointed out Minister of Agriculture István Nagy.

(Photo: Pixabay)

The head of the ministry emphasized that Hungary has the most extensive agricultural risk management system in the European Union. As one of the pillars of this, farmers have for many years been able to use the subsidy for the premiums of agricultural insurance contracts linked to weather risks, if they request it in a unified subsidy application submitted to the Hungarian Treasury. The Ministry of Agriculture provides support from the Rural Development Program, which also aims to strengthen the responsibility of agricultural producers based on self-care and covers part of the insurance premium.

The minister emphasized that the annual budget for agricultural insurance premiums – which was 4 billion forints in 2016 – is constantly and dynamically increasing, and as a result, more than 37 billion forints have already been paid out in connection with 100,000 applications in the past 7 years. With the current decision, a subsidy of almost HUF 14 billion has been approved for more than 23,000 more applications for the year 2022, the payment of which to farmers will soon be started by the Hungarian Treasury.