Ministry of National Economy: collaboration for Hungarian livestock farming, NGM helps farmers with targeted measures

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In order to curb the epidemic and support prevention, the Ministry of Agriculture announced a tender for the development of animal health and epidemiological infrastructure, to strengthen the sector’s defense capabilities and to improve biological security – the NGM recalled. It was announced that the NGM is also continuously examining the situation of farmers and the necessary intervention options, and as a first step, supporting the measures of the specialized ministry, it has developed a five-point package of measures to help farmers and livestock keepers, with which it provides targeted financial and economic assistance to those affected.

In the first point, the NGM announced a “loan moratorium”

Accordingly, a “loan moratorium” will automatically come into effect on farms where animals have been killed as a result of the epidemic. The affected farmers can defer their payment of capital, interest and fees, thereby receiving temporary financial relief to maintain operations and stabilize their financial situation.

The ministry offers wage guarantee support

Through the Wage Guarantee Fund, the NGM provides support to ensure that wages continue to be paid on farms that have been officially closed. The amount of state aid to be refunded may not exceed 2 million 945 thousand 570 HUF per employee. The application for support must be submitted to the Employment Department of the Budapest Metropolitan Government Office. In the third point, the Ministry of Agriculture and Rural Development provides a source of compensation, i.e. the government has allocated budgetary resources in connection with the protective measures, so the amount necessary to compensate the affected farmers is available. For farmers directly affected by the epidemic, a zero-interest and free-of-charge loan structure will be developed within the framework of the Széchenyi Card Program for the restart of the establishment and for liquidity purposes.

Finally, according to the fifth point, the Ministry of National Economy has asked the Hungarian Development Bank to provide financing on favorable terms for livestock farmers

The schemes will be open not only to cattle and pig farmers, but also to all actors in the livestock sector, including poultry farmers, thus helping the financing stability of the sector, after market banks have practically withdrawn from the sector. The NGM confirmed that the government is mobilizing all necessary means to ensure that Hungarian livestock farmers can overcome the difficulties and continue their work stronger. As they wrote, the aim of the measures is twofold: on the one hand, to ensure animal health safety and the continuity of the food supply chain, and on the other hand, to maintain economic stability in the livestock sector. The Ministry of Agriculture, the Ministry of National Economy and other government bodies will continue to cooperate closely to ensure that Hungarian livestock farming remains competitive, sustainable and crisis-resistant, the NGM concluded its statement.

MTI