The application wave starts in the spring

(Photo: AM/Tibor Vermes)

The state secretary responsible for agriculture and rural development reminded the participants of the event: the negative impact of the drought experienced in 2022, the problems caused by the Russian-Ukrainian war, and difficulties in the grain market on the incomes of farmers increased the role and importance of financing instruments. These include both grants and loan financing. Last year, a total of 1,400 billion forints reached farmers, and in the first two months of this year, another 82 billion forints of funds were received by around 42,000 agricultural enterprises.

For many economies, this meant staying afloat

Zsolt Feldman presented that the total amount of the basic support requested in last year’s applications is expected to be 139 euros per hectare, 61 euros per hectare in the Agro-ecological Program, 82 euros per hectare according to the current status of the redistribution support after the first 10 hectares and 45 .5 euro/hectare related to areas between 10 and 150 hectares. He drew attention to the fact that the process of announcing applications for new agricultural and rural development support within the framework of the KAP Strategy Plan until 2027, with a frame amount of HUF 2,900 billion, has started. In order to use this amount as effectively as possible, the presentation of sales security – cooperation with producers, the existence of a long-term supplier relationship -, financial soundness, increasing added value and digital content will be a priority evaluation aspect – said Zsolt Feldman. The state secretary also touched on the fact that the Ministry of Agriculture is working on the preparation of separate investment calls for small and large enterprises, which guarantees access to the resources necessary for the development needs of small farms. It is a significant help for farmers to plan the accountability of interest costs related to investment loans or, for example, to create the possibility of – between frames – collateral-free advance financing.

In Zsolt Feldman’s presentation, he once again mentioned that due to the changed and more difficult market conditions, conscious decisions are needed

If someone is thinking about selling to the traditional, usual arable crop market and intensive production, they should only do so efficiently, with conscious management of input materials and strict adherence to technological discipline. In lower-quality areas, it is only possible to produce by applying less intensive cultivation technologies with lower input costs, if the farmer wants to achieve a result and not a loss.

AM