István Nagy: the government supports the generational renewal of agriculture

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The head of the ministry emphasized that the aim of the call for proposals to support farm transfer is to promote the generational renewal of agriculture and ensure the continuity of the operation of farms. A total of 1,729 applications for support have been received so far for the call for proposals to support farm transfer, announced within the framework of the Common Agricultural Policy Strategy. The Ministry of Agriculture is doing everything possible to ensure that applications are processed and payments are made as quickly and smoothly as possible, thus facilitating the ability to plan for the farmers concerned – he indicated.

István Nagy highlighted that significant resources are being provided in the current agricultural support cycle, in addition to the legal background, to facilitate the agricultural generational change

An initial budget of 10 billion forints is available to support farm transfer cooperation and 22 billion forints to support those taking over farms, but in accordance with farmers’ needs, the government is providing additional resources in order to ensure that all eligible applicants are eligible for support. This year, a new round of calls supporting both farm transfer and takeover is expected – the minister drew attention. He recalled that the aging of agricultural producers is a worrying phenomenon throughout the European Union. It is a serious challenge that almost two-thirds of individual farmers in our country are over 55 years old, and more than one in two of them has already reached the age of 65. Half of the managers of business companies also belong to this age group. These data justify the Hungarian government paying special attention to the legal and financial conditions for the smooth transfer of farms. This is served, among other things, by the Act on the Transfer of Agricultural Farms, which was one of the first in the European Union. This regulation makes the process of farm transfer simpler, more flexible and more transparent.

The farm transfer contract allows the transferor and the transferee to conclude an agreement tailored to their own life situation

The law also pays special attention to ensuring that the value of the farm is maintained not only in the assets, but also in the accumulated knowledge and network, which is why the transferor and the transferee can cooperate for up to five years in order to ensure a successful transition. The appropriate legislative background and predictable support environment can provide an answer to the generational challenges of Hungarian agriculture and contribute to the renewal of the agricultural enterprises concerned, ensuring the continuity of production – the minister said.

MTI