The government decided on an extraordinary agricultural interest subsidy program

In view of the extremely severe drought situation, in order to improve the financing situation of agricultural production and ensure the security of the food supply, the government will create the conditions for the interest rate related to the Agrár Széchenyi Card Overdraft to be reduced to 3% for the farmers who suffered damage and livestock keepers in difficult situations, he announced. Istvan Nagy.

Interest subsidies are helpful for many farmers (Photo: Pixabay)

The minister reminded that by the end of August, the producers had reported drought damage to around 1.3 million hectares of arable and plantation land. The drought and the lack of precipitation affect the crops sown in the spring particularly seriously, and the fodder base of the livestock breeders is also endangered. After the creation of the credit moratorium, a decision was made on new government assistance in order to ensure that the daily operations of a significant number of farmers, who are already in a difficult situation due to the explosively increased costs of input materials for production, are not made impossible by the drought, and that the further financing of agricultural production is resolved. The country’s fundamental interest is that the autumn agricultural works begin without disturbance, that food production is ensured, and that the necessary fodder is available for the animals, added the head of the ministry.

Details about the new support

The minister emphasized that, on the proposal of the Drought Emergency Task Force, the government provides agricultural enterprises suffering from one of the most severe droughts of the century with the possibility of taking out an overdraft loan with a particularly favorable interest rate. Pursuant to the decision, the Ministry of Agriculture will provide the required amount of interest support, but no more than 14%, for crop growers with drought damage certified by government agencies, as well as all livestock keepers, for the newly taken out Agrár Széchenyi Card Current Account Loan, in such a way that the annual interest burden of the loans taken out is 3% be. According to the plans, priority support can be provided for new loans concluded by December 31, 2022 at the latest. Other conditions of the program remain unchanged. The Ministry of Agriculture will start the necessary amendments to the law and the negotiations with the partners involved in the implementation, without delay, so that the preferential loan can be made available as soon as possible – highlighted István Nagy. The head of the ministry said that farmers can count on the government even in times of difficulty. The challenges facing agriculture can be overcome by joining together and drawing strength from the difficulties.

AM