From next year, it will be possible to pay subsidies worth several thousand billion forints in Hungarian agriculture

By: STA Date: 2022. 11. 09. 09:14

The European Commission (EC) has adopted the Strategic Plan of Hungary’s Common Agricultural Policy (KAP) for the period between 2023 and 2027, which opens up the possibility of paying several thousand billion forints in subsidies to the Hungarian agri-food industry – the National Chamber of Agricultural Industry (NAK) announced on Tuesday at the MTI- with.

(Photo: Pixabay)

According to the announcement, 58 percent of the callable fund under the CAP will be available, with an amount of approximately 147 euros per hectare. In addition, the agro-ecological program will also reward significant additional voluntary commitments from the point of view of the environment and the climate with a subsidy of approximately 81 euros per hectare – they wrote. The announcement reveals that one of the most important elements of the plan is increased support for small and medium-sized farms, which means the redistribution of 10 percent of direct payments to farms under 1,200 hectares. Based on the plan, Hungary will spend 1.4 percent of direct subsidies (about HUF 100 billion) on income support and generational renewal for almost 2-4 thousand young farmers. The subsidy per hectare for producers under the age of 40 will be increased by two to two and a half times the previous amount, and the territorial upper limit will be changed from 90 to 300 hectares, so approximately 8,800 farmers starting their careers who have the appropriate qualifications can receive a subsidy of almost 157 euros. In the announcement, it was explained that Hungary spends about 51 percent of the rural development budget on economic development, including the renewal of the food industry, as well as on stimulating investments that increase the value added per hectare: 38 percent on the implementation of agri-environmental protection measures, 8 percent on the development of ecological farming, 5 percent for the protection of areas covered by the Natura 2000 EU program.

About 30 percent of the rural population will benefit from the services

The projects supported by the plan will create at least seven thousand new jobs. In addition, simplified tenders worth more than HUF 50 billion will be available, which will provide 10-20 thousand small producers with opportunities in the local food supply, they explained. More than HUF 100 billion will be available to support the irrigation communities, but the KAP strategic plan covers new animal welfare subsidies, and in the next 5 years it will also apply support for native animal husbandry and the preservation of plant and forestry genetic stock, they wrote. According to the announcement, support can be used for expert advice, training and demonstration plant programs, the implementation of which is supported by the Széchenyi Agricultural Knowledge and Accreditation Center. Through ecological subsidies and programs, Hungary plans to double the size of the areas under organic farming by 2027, the announcement states.
MTI